Yesterday we saw unusual call option activity in Anadarko Petroleum, an independent oil and gas company. The biggest trade of the day was the purchase of 2750 Nov. 80 calls for $0.37 with the stock trading at 69.10. This is a bullish bet that APC will be above 80.37 at Nov. expiration, which will require a 16% move in the next 35 days. Approximately 50% of Anadarko’s revenue is derived from their natural gas business, which means the stock is likely to rally along with natural gas. Currently the stock is consolidating at support in the 68-69 area, and this trader believes a breakout will take it above 80. We see Anadarko as a hedged play on natural gas; since its business is split 50-50 between oil and gas, its stock will have less volatility than the price of natural gas but will certainly benefit from a rally. If Anadarko breaks out above 80, the next major resistance level is its 52-week high of 88, which means this call option could potentially return a lot but at just $0.37 it does not require taking much risk.