Traders are looking to ride the recent upward momentum in Range Resources.

optionMONSTER's Heat Seeker system detected the sale of 2,000 December 32.50 calls for $4.60 and the purchase of 2,000 December 37.50 calls for $2.25 yesterday. Volume was below open interest in the lower strike, indicating that a long position was rolled higher.

The investor is closing the December 32.50 calls to take profits and is using some of the proceeds to open a new position in a strike that is $5 higher. Long calls lock in the price where investors can buy a stock, which lets them position for a rally with limited capital. That can be safer than purchasing shares directly because only the cost of the options can be lost on a pullback. The calls can be sold anytime before they expire but will lose value if the stock falls. (See our Coaching section)

RRC rose 3.81 percent to $35.38 yesterday. The oil and natural-gas producer is down 36 percent on the year but is up about 18 percent since beating earnings and revenue estimates on Oct. 29.

Overall option volume in the name was more than double its daily average for the last month. Calls accounted for a bullish 94 percent of that total.

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