3 Reasons To Consider EXCO Resources
By Sammy Pollack:Shares of natural gas exploration and production company EXCO Resources (XCO) are down by over 30% so far in 2012. However, there are three reasons to consider buying EXCO Resources.
Option Monster reported on the high level of bullish options activity recently; 15,000 September 8 calls were purchased, while an equal number of September 10 calls were sold. Volume was more than triple open interest at both strikes. This trade, known as a bullish call spread, will benefit from a rally in XCO. Overall, call volume outnumbered put volume by 25-1. This large trade likely represents institutional money. Institutional money is usually smarter, thus worth following. In summary, the recent options activity points to upside ahead for XCO over the medium term.
Wilbur Ross, founder of WL Ross & Co, has increased his involvement in XCO. In 2011, Ross doubled his stake in XCO to 13.7%.Complete Story »