Oil & gas company Antero Midstream Corporation (AM) is up 32% over the past year. One trader expects further gains into next year.
That’s based on the January 2026 $20 calls. With 351 days until expiration, 9,388 contracts traded compared to a prior open interest of 228, for a 41-fold rise in volume on the trade. The buyer of the call paid $0.45 to make the bullish bet.
Antero shares recently traded for just over $16, right at a 52-week high. The stock would need to rally by about $4, or 25%, for the option to move in-the-money.
Antero has performed well over the past year even as oil prices have been lackluster. Revenues and earnings rose by just 2%. While that isn’t much, Antero sports a 33% profit margin, a fantastic return for the low-margin energy space.
Action to take: In addition to being in an uptrend, as a midstream company, Antero pays out most of its earnings as dividends. Shares pay a 5.6% yield at current prices.
For traders, the stock is in an uptrend, and oil prices are also starting to trend higher. That’s a good sign that the January 2026 calls could be a big winner.
Given their low price, under ideal conditions the option could easily see triple-digit returns. If there’s a big runup in oil in the first half of 2025, traders may want to take quick profits.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
