Bullish options flow was detected in BP stock on January 6, 2020, after the company’s stock received an upgrade from Wells Fargo.
A whopping 82,425 calls are trading, 16x expected, and implied vol increasing almost 3 points to 19.73%. 1/10 weekly 40 calls and Jan-20 40 calls are the most active options, with total volume in those strikes near 55,400 contracts.
The bullish options flow is likely the result of BP stock being upgraded by Wells Fargo analyst Roger Read. BP stock could also be rising from the fact that the price of oil is rising because of increased hostilities between the US and Iran.
Wells Fargo analyst Roger Read upgraded BP to Overweight from Equal Weight and raised his price target on the shares to $46 from $41. The analyst also notes that BP is his new top pick within the Super Majors.
On December 15, 2019, analysts at Jefferies presented a European “Christmas list of 20 stocks for 2020”, and BP stock was on the list of 10 large cap buys.