Learn the trade here. Make it on tradeMONSTER

Options Trading News

October 11, 2013  Fri 3:16 AM CT

EXXI: SEE CHART GET CHAIN FIND STRATEGIES
An enormous put spread topped yesterday's option activity in natural-gas company Energy XXI.

optionMONSTER systems show that 20,000 each of the March 28 and 22 puts changed hands, with the 28s bought for $2.55, and the 22s sold for $0.85. The volume was multiples of the previous open interest at each strike, so this is clearly new positioning.

The vertical spread cost the trader $1.70, which is the maximum amount at risk. The maximum gain would be $4.30 if shares are below $22 at expiration in mid-March, though the trader would then be on the hook to buy shares at that level. (See our Education section)

The EXXI was up 1.76 percent to $30.56. The Bermuda-based company was above $32 on Friday, its highest price since March. Shares were down at support at $22 in late June.
Share this article with your friends


Related Stories

EXXI

The bears are circling Energy XXI

November 7, 2014

The offshore oil driller has been hurt by heavy capital expenditures to increase production at the same time that oil prices fell to a multi-year low.

EXXI

Bearish trade targets Energy XXI

October 30, 2014

A large trade is apparently betting that the Bermuda-based oil and natural-gas producer will fall after reporting earnings next week.

Premium Services

Free Webinar Series

Using Options for Income

Education & Strategy

Importance of learning the basics

Personally, I could never understand how so many option instructors start teaching strategies before explaining what an option is. I...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER