Market News

July 3, 2014  Thu 11:04 AM CT

Devon has pulled back from three-year highs, but one trader is betting that the energy company will hold current levels for the next three months.

optionMONSTER's tracking systems detected the sale of 2,500 October 75 puts for the bid price of $2.11 in late-morning trading. Open interest in the strike was just 641 contracts before the trade appeared, show this is a new position.

The put seller is looking for DVN to stay above $75 through expiration in mid-October, at which time the $2.11 credit would be booked as the trade's profit. But if the stock falls below that strike price, the trader would be on the hook to buy shares at that level. (See our Education section)

DVN is up 0.41 percent to $78.90 today. The oil and natural-gas producer reached $80.63 at the end of June, its highest price since July 2011.

Today's put sale follows bullish call buying in Devon that we reported June 13 on our InsideOptions Pro subscription service. The company's next earnings report is scheduled for Aug. 6.
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