Exco Resources (XCO) is up $1.56 to $12.68 after the company announced a joint venture with BG Group to develop its Haynseville Shale and other East Texas/North Louisianna operations (Link to story). In the options market, trading is active, with 16K calls and 3,300 puts traded.

Interestingly, bullish bets have been building in XCO in recent weeks, even as shares lost more than one-third in value during the first few weeks of June (chart). However, shares are now up more than 30 percent from June 23 lows. Active trading in August, September, and December out-of-the-money calls seems to reflect expectations for additional gains in the months ahead.