Learn the trade here. Make it on tradeMONSTER

Options Trading News

June 20, 2013  Thu 5:16 AM CT

SWN: SEE CHART GET CHAIN FIND STRATEGIES
For the second session in a row, the bulls targeted Southwestern Energy yesterday.

optionMONSTER's Heat Seeker tracking program detected the purchase of more than 8,000 September 43 calls for $0.87 to $0.90. Volume was more than twice previous open interest of 3,378 from Tuesday's buying, which means that traders put even more money to work on the long side.

These long calls lock in the price where shares of the natural-gas producer can be bought. Investors use the contracts to prevent stocks from running away from them at a fraction of the cost of buying the shares outright. Their relatively cheap price can also result in significant leverage on a percentage basis. (See our Education section)

SWN fell 1.21 percent to $37.57 yesterday but is up 37 percent in the last year. The stock found support at its 200-day moving average early in January and February but has bounced at its 100-day more recently. That suggests a potential acceleration of its bullish uptrend.

Total option volume was 6 times greater than average in the session, with calls outnumbering puts by 23 to 1.

(A version of this post appeared on InsideOptions Pro yesterday.)
Share this article with your friends


Related Stories

SWN

Southwestern calls keep stacking up

October 7, 2014

Bullish traders targeted the shale-energy producer yesterday for the third session in a row, this time with long-term calls.

SWN

Bulls hit Southwestern Energy again

October 6, 2014

The shale-energy company saw heavy call buying for two consecutive session last week as it tries to hold support near its lowest level since January 2013.

SWN

Bulls pile into Southwestern Energy

October 3, 2014

Shares of the shale-energy company have lost 22 percent of their value in the last three months, almost twice the decline of the broader energy sector during the same period.

SWN

Notable option trades in equities

October 2, 2014

Nearing the halfway mark in today's session, here are the individual equity names with unusual option activity on optionMONSTER's ActionTracker data system.

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER