Options Trading News

November 8, 2013  Fri 2:47 AM CT

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



The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

The protective put strategy

The Protective Put Strategy is a stock friendly which makes it great for individual investors. It is composed of a long stock position and a one to one ratio put position. This means that you own 1 put for every 100 shares of stock.

View more education articles »