Exco Resources (XCO) is off a nickel to $6.79 and one strategist seems to be expecting a rebound in shares of the Dallas, TX oil and gas company, as an XCO Sep 8 – 10 call spread was bought this morning for 37.5 cents, 15000X to open. It’s tied to 300K shares at $6.70. XCO has been pummeled for a 67.5 percent loss since April 2011. However, shares are up 12.2 percent this week and the hefty call spread seems to express the view that the stock can continue to recover some of its losses through mid-September. Earnings come into play on the afternoon of May 1.
About the Author (Author Profile)
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.