OptionRunners' Analysis and Picks

[ixtegene]

Currently long NRG June 31x/32x call spread for a net debit of .31.

Lots of bullish activity on the options, particularly a large June risk reversal that was opened about a month ago along with some January 2015 risk reversals.

Earnings will be reported next Friday (Feb 28th) pre market. Due to the unusually cold weather I do believe they'll beat on earnings as well as other utilities posting strong earnings recently, but I'm not in because of that. I'm in because of the options activity and I believe a large investor is buying NRG based on the activity. No announcement yet, but ideal outcome would be for an investor to announce a stake in the company. Other catalysts could be strong earnings, buybacks, etc.

Holding through earnings Friday and possibly after depending on what it does next week.

Also currently long on PIR and ECA. PIR just a chart play with the March 19x calls at .75 (currently .75 x .80), but also had some buyers yesterday on the calls. And ECA July 22x calls at .47 due to unusual activity (currently .30 x .35). Went long prior to earnings last week but didn't really move. Rumors now of Blackstone possibly buying some of Encana's assets which would send it higher if it were to come to fruition.

[lukfube]

ECA said to work with RBC to sell Bighorn assets in Alberta. Some news in the last 15 minutes to push it a bit higher into the close.