Exco Resources (XCO) calls are seeing active trading, as the stock rallies $2.04 to $26.98 a share. Total volume is five times the usual, with 8,216 calls trading, or ten times the number of calls. XCO, PetroHawk (HK), and Penn Virginia are rallying for a second day after PVA disclosed last Friday that its first well in the Haynesville Shale produced much more than expected. All three companies have interest in the area. On May 16, Exco’s board approved a $123 millioin increase in its 2008 capital budget, which included $90 million more for drilling in Haynesville Shale.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.