FX Energy (FXEN)

[Investorman]

Buyers hope for gusher in FX Energy

FXEN soared 27.04 percent yesterday to $3.43 after reporting positive signs in early exploration at a key drilling site in Poland, where the company primarily operates. Shares closed at their 50-day moving for the first time since early March but are still a far cry from their 52-week high of $8.78 reached last September.

Yesterday's long calls , which lock in the price where traders can buy the stock no matter how far it might climb, are looking for shares to rally above $5 in the next five months. That would be a gain of another 50 percent, back to levels not seen since early November. (See our Education section)

Total option volume in the name exceeded 4,900 contracts yesterday, compared with a daily average of just 212 contracts in the last month. Calls outnumbered puts by more than 10 to 1, a reflection of the session's bullish sentiment.