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December 28, 2012  Fri 4:14 AM CT

UPL: SEE CHART GET CHAIN FIND STRATEGIES
Ultra Petroleum has been falling since early November, and one trader is looking to ride the stock lower.

optionMONSTER's Depth charge tracking program detected the purchase of about 1,900 January 18 puts for $0.65. A similar number of January 19 puts were sold at the same time for $1.15, but the volume was below open interest at that strike.

The activity suggests that the trader came into the session owning the higher-strike contracts. He or she then closed that position and rolled to the 18s, receiving a credit of $0.50 in the process. The trader also stands to keep money if the Houston-based energy company continues to decline. (See our Education section)

UPL fell 1.29 percent to $18.40 yesterday and has lost 20 percent of its value in the last two months. The shares are now back around the same level where they bounced in the spring, which could be leading some chart watchers to expect a major collapse if the stock breaks below it.

Total option volume was triple the daily average in the session, according to the Depth Charge. Puts accounted for about 70 percent of the total.
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Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

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