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September 19, 2016  Mon 5:47 AM CT

RRC: SEE CHART GET CHAIN FIND STRATEGIES

Range Resources has dropped sharply in recent days, but traders apparently believe that the bloodletting is coming to an end.

optionMONSTER's market scanners show that about 2,500 October 36 puts were sold mostly for $1.45 on Friday. Volume was more than 10 times the open interest in the strike, indicating that these are new positions.

Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)

RRC fell 5.05 percent to $37.38 on Friday and is down 9 percent in the last week. The oil and natural-gas producer is expected to announce quarterly results after the close on Oct. 27.

Overall option volume in the name was 5 times greater than average on Friday.

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