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Plenty of activity across the entire energy spectrum today with many smaller/mid cap E&P companies up almost 15% in many cases (ECA, MRO, WPX, APA to name a few) and service companies up almost 10% (SLB, HAL for example). But one name stands out in particular for the sheer size of short dated call buyers…..British Petroleum….one of the mega cap energy names where you wouldn’t expect to see this type of activity. Over 100,000 Sept 20 expiration (this week!) $41 strike calls have traded so far today between $.12 and $.42 (yes, quite a range!) with the stock currently at $39.40. That is well over 10X its normal average daily volume. I think that BP getting to $41 this week to make these calls potentially in the money is a bit of a stretch barring more OPEC related chaos in the Middle East. However I did buy the next weeks (Sept 27th) $41 strike call and shorted this weeks and only had to pay 5 cents to do that. Might not sound like much, but it gives me an extra full week to see if BP can break through the $40 resistance zone. My risk is defined, and this spread can easily widen out as the week progresses if BP continues to move higher. I love doing these type of trades as my risk is minimal, my upside is unlimited if my timing proves favorable, and I don’t have to sit and stare at it all day long. The spread has widened to 8 cents currently, but if it backtracks I will look to add more at 5 cents.