Upside Calls Active on Linn Energy (LINE)

Shares of Linn Energy (LINE) are trading higher on the session by 0.54%, at $41.87. The stock has been rallying strongly over the past four months, bursting through the 200-day moving average, consolidating, and then pushing to all-time highs.

Although shares are trading in technically overbought territory, one institutional trader is buying upside calls on the name today, betting on even more gains.

The April 2013 $45 call was purchased 11,300 times, on the offer, for $0.70. Volume on the strike is now over 12,600 contracts; open interest is only 164, indicating new positioning on the name.

Near-term historical and implied volatility are trading near 4-months lows, at 17% and 12% respectively.

Linn Energy is set to report Q3 earnings later this month, on October 25^th. Perhaps this could be a catalyst for the name to move toward that $45.00 strike.

Linn Energy, LLC is an independent oil and natural gas company. The company's properties are located in the United States, primarily in the Mid-Continent, the Permian Basin, Michigan, California and the Williston Basin.

About Michael Zerinskas

Originally from Chicago, Michael J. Zerinskas began his career as an intern for a small high-frequency trading firm based at the CME; he then moved on to become Chief Options Strategist at Benzinga.com. Michael is now Unusual Activity Editor at The Options Insider, specializing in VIX, volatility, and flagging unusual activity.