Calls Purchased on China North East Petroleum (NEP)

Shares of China North East Petroleum NEP are higher on the session by 2.44%, currently trading at $4.20. The stock has been moving largely lower over the past six months and is currently trading below the 50-day and 200-day moving averages. Options traders are buying calls on the name today. A short while ago the May 2011 $5.00 call was purchased 1,500 times, on the offer, on open interest of only 827 contracts. This signals new positioning on the strike. Overall call volume is now running at 4.49x the daily average with 98% of all calls traded being purchases on the offer. China North East Petroleum Holdings Limited is engaged in the exploration and production of crude oil in Northern China. As of December 31, 2009, the company operated 289 producing wells located in four oilfields in Northern China. It has an arrangement with the Jilin Refinery of PetroChina Group to sell its crude oil production for use in the China marketplace.