Some bullish activity came across the tape today in BJK, the MarketVectors Gaming ETF, which is a fund comprised of companies that earn more than half their revenue in the gaming industry. This includes casinos, lottery services, racetracks, online sports betting and more. Perhaps some investors see opportunity for growth in the short term with the World Cup approaching and gambling increasing.

BJK is trading in the middle of its 52-week range and gapped up the better half of a dollar overnight and continued to rise this morning with strong volume. A bearish trend can be confirmed by looking at the chart, which shows a break above strong resistance this morning and a climb to well above the cloud, coupled with higher than usual volume.

Let’s take a look at a trade.
The Trade: Buying the BJK July 49-50 Bull Call Spread for $.35 debit

Risk:  $35 per 1 lot

Reward: $65 per 1 lot

Greeks of this Trade:

Delta: Long

Gamma; Long

Theta: Short

Vega: Long

Devon Energy Corporation (DVN) is involved in the exploration and development of oil, natural gas and NGL’s. The stock is a consensus “Buy/Hold” on Wall Street after strong sessions Tuesday and so far Wednesday and has received high price targets from a lot of banks. The stock is still seemingly a value play trading fewer times earnings than industry counterparts and the market as a whole. That combined with 4x usual volume and making new highs would suggest a continued rally.

Management seems to be performing well after making moves to refocus efforts and funds on domestic development, selling off international assets. This is a play on the likely expansion of US energy production. The sector has been leading the market and Devon has been leading the sector this year, so it’s easy to see why traders are long DVN.

Devon looks great on the cloud chart as well, breaking through strong resistance this morning to the upside and continuing to push higher.

The Trade: Buying the DVN July 82.5 Calls for $.33

Targets: Sell 20% at $.43, Sell 20% at $.53, Sell 20% at $.65, Sell 20% at $.80, Sell 20% at $1.00

Greeks of this Trade:

Delta: Long

Gamma; Long

Theta: Short

Vega: Long

Campbell’s Soup Company (CPB) is seeing some UOA today and hitting highs of $45.94. The soup maker from New Jersey is up 6.5% YTD after hitting lows of $39.49 in January, likely a result of this year’s harsh winter. After rebounding the stock has done well on the charts breaking through the cloud to the upside and finding strong support levels still above the cloud. The future is bright as the cloud projects an upward trend and gets thicker and thicker, indicating a continued rally for Campbell’s.

CPB over the past few years has hit higher highs and higher lows after selling off from its 52-week high above $48. This, as we all know, is a great sign of bullish movement and traders on the street are betting it will continue. Lets look at a trade:

CPB: Buying the CPB Nov 47 Calls for $1.5

Targets: Sell 25% at $1.70, Sell 25% at $1.90, Sell 25% at $2.10, Sell 25% at $2.50

Greeks of this Trade:

Delta: Long

Gamma: Long

Theta: Short

Vega: Long

Anadarko Petroleum Corporation (APC) is a Texas based oil producer is up 31.2% YTD and isn’t looking back. The energy sector has lead the market this year and APC is no exception. After receiving a nice jump after a lawsuit settlement in April the stock has continued to climb. It has underperformed the industry in the past years and this new activity may be due to a catch-up in productivity. A trader went aggressively long APC buying the right to buy company stock at $115 at or before August expiration. It’s currently trading at $104.31 hitting its 52-week high.

The daily chart is forecasting a continued bullish trend over the next month. Day traders should also be confident looking at the shorter charts with APC breaking resistance above the cloud. Looking at the five-minute bar, APC is flirting with topside resistance in the cloud.

Now lets look at the trade:

Buying the APC Aug 115 Calls for $.77

Targets: Sell 25% at $.90, Sell 25% at $1.10, Sell 25% at $1.30, Sell 25% at $1.50

Greeks of this Trade:

Delta: Long

Gamma: Long

Theta: Short

Vega: Long

This article was written by Kyle Sheahan, an Associate at Keeneonthemarket.com.

e: Kyle@Keeneonthemarket.com