Upside call buyers are active in Denbury Resources (DNR) ahead of earnings. The Plano, TX oil and gas company is due to release results tomorrow morninng. DNR is down 38 cents to $19.12 in active trading of 2.6 million shares Wednesday ahead of the news. Meanwhile, 5,530 calls and 190 puts traded, which is 5.5X the daily average for the name. The flow is focused on May 20 calls, which are falling 4.6 percent OTM and expiring in 17 days. The action includes a multi-market sweep of 3,955 contracts for 30 cents, which is an opening customer buyer, according to ISEE. 5,190 now traded and 30-day ATM Vols are up 10 percent to 40.5.
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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.