OptionsHouse

Options Trading News

November 8, 2013  Fri 2:47 AM CT

EOG: SEE CHART GET CHAIN FIND STRATEGIES
EOG Resources fell on third-quarter results yesterday, but a large trader sees a floor in shares of the oil and gas company.

optionMONSTER systems detected the sale of 7,238 April 165 puts for $10.30 yesterday, below the listed bid price at the time. This is clearly a new position, as open interest in the strike was just 78 contracts before the trade appeared.

The put seller is betting that EOG will hold above $165 through mid-April. But if it falls below the $165 strike price, the trader will face the obligation to buy shares at that level. (See our Education section)

EOG dropped 2.86 percent to $171.58 yesterday after dipping to $165.05 in the morning. The stock hit an all-time high of $188.30 two weeks ago.
Share this article with your friends


Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Options Academy: At the Break

So far, my articles have taken you through a logical progression of option theory and fundamental concepts of options. As of yet, I have not mentioned a single strategy and for a good reason! The actual application of a strategy should come AFTER you learn about the option product itself.

View more education articles »