Trader Bets Pioneer Will Bounce

Pioneer Natural Resources (NYSE: PXD), an independent oil and gas producer, is seeing bullish options activity this morning. The Jan 2010 40 calls received a block trade over 1900 contracts, total volume is now nearing 3000, bought between the bid and ask for 3.40. Open interest on the line is only 580, so new positions are a given.

Pioneer Natural Resources has seen support around the 40 handle, which it almost hit this morning at the apex of the sell-off, reaching 40.59. Implied vol on the Jan 40 strike is below historical vol, making this a smarter way to get long the stock than purchasing it outright.