Superior Energy Services, Inc. (SPN) is a company that provides services and equipment to customers in the oil and gas industry. The company’s stock touched off of a new 52 week high today and shares are currently trading around $30.69 in a 52 week range of $22.85-$31.41. The stock has been performing well this year with shares up nearly 15% year to date. There has been some bullish options activity in SPN today and it seems like options traders are expecting this uptrend to continue. Earlier this morning a trader bought 2,000 of the SPN Apr 32.5 calls for $0.25. This is the biggest block to trade today with calls massively out trading puts. Nearly 4.4 times the average daily option volume has traded in SPN today. With shares of SPN trading at 52 week highs and looking strong on a chart we believe that this order flow is signaling further upside in SPN.
Block Trader’s Trade: Buying the SPN Apr 32.5 Calls for $0.25
Risk: $25 per 1 lot
Reward: Unlimited
Breakeven: $32.75