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June 27, 2012  Wed 9:21 AM CT

LNG: SEE CHART GET CHAIN FIND STRATEGIES
Cheniere Energy is holding support, but one trader sees little upside.

LNG is up fractionally this morning, trading at $12.42. Shares of the liquefied natural-gas company are down from a 52-week high of $18.92 in late April but have largely held the $12 level for the last month.

optionMONSTER's systems show that a trader sold 3,000 December 15 calls for the ask price of $1.45. This outpaced the open interest, so it is a new position.

If the calls were sold naked, it would have an initial bearish bias. That position would have significant risk if LNG runs higher through the end of the year. The options could also have been traded against long shares as a covered call, which would be bullish up to the strike price but give up any gains above that level. (See our Education section)
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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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