Big spread sees Suncor holding support
Chris McKhann | firstname.lastname@example.org
SU dropped 3.33 percent to end the day at $31.60, its lowest close since April 24. The integrated-energy company, which was trading below $30 in the middle of last month, was up near $34 on Tuesday.
optionMONSTER's systems detected a trade that involved 16,800 each of the June 26 and 31 puts. The June 31s were sold in big blocks of 8,231 puts for $1, while the June 26s were bought above the ask price at $0.15. The volume at each strike was well more than open interest, so this is a new put credit spread.
The trade takes in a credit of $0.85, which will be the profit if SU remains above $31 through expiration. The potential loss is $4.15 if the stock is below $26 at that time. (See our Education section)
More than 41,000 SU options traded in total yesterday, compared with the daily average of 6,600. Puts outpaced calls by 7 to 1.