Limited downside seen for EOG
Chris McKhann | [email protected]
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.