Learn the trade here. Make it on tradeMONSTER

Options Trading News

December 7, 2012  Fri 3:47 AM CT

APC: SEE CHART GET CHAIN FIND STRATEGIES
Anadarko Petroleum is at a potential resistance level, and one investor apparently thinks that it might head lower.

optionMONSTER's Depth Charge tracking program detected the purchase of almost 11,000 January 70 puts for $1.44 and the sale of an equal number of January 65 puts for $0.48. Volume exceeded the open interest at each strike, so this is a new put spread.

The trade cost $0.96 and will earn a maximum profit of 421 percent if the energy stock falls to $65 or lower on expiration. (See our Education section for more on the strategy, which is known as a vertical spread because it leverages a move between two price points.)

APC fell 0.52 percent to $74.35 yesterday and is up more than 10 percent since late October. The shares are now back to roughly the same level where they peaked in May and September, which could be leading some chart watchers to believe that they're now at risk of getting sold.

Total option volume was triple the daily average, according to the Depth Charge. Puts accounted for two-thirds of the total.
Share this article with your friends


Related Stories

APC

Largest option trades in equities

July 16, 2014

Nearing the halfway mark in today's session, here are the individual equity names with the most call and put buying on optionMONSTER's ActionTracker data system.

Premium Services

Free Webinars

Join The 100k Challenge: Turn 3k into 100k

Education & Strategy

Why the VIX isn't 'broken'

For months there has been lots of talk about complacency and the "broken" CBOE Volatility Index, but both discussions are...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER