Sandridge Energy (SD), which saw hefty buyers of Jan13 7.5 calls Friday and Monday (see12/19 color – premium) and 25K Jan 7.5 calls Thursday (see 12/15 color – premium) jumped this afternoon and is up $1.57 to $8.27 on news of a $1 billion Mississippian joint venture. 34,000 calls and 8,700 puts traded on the stock. Jan 7.5 calls, which were bought 25000X at 23.5 cents Thursday, are the most actives. 10000 traded at a VWAP of 58 cents. Jan and Mar 9 calls are seeing brisk trading as well. The Jan13 7.5s, which were being opened for $1.96 Friday and $1.76 Monday, now fetch $2.70. Open interest is 58,916. Ahhhhhh!

This is why we watch the Order Flow!! 50,000 Jan13 7.5 calls and 25000 Jan12 7.5 calls bought on this pig the week before a one-day 23 percent rally. Are you kidding me??? Blatant…..