Market 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.
News Archives
OptionsHouse

Education & Strategy

Election Sector Rotation

Sector rotation is the process where mutual funds, portfolio managers, and investors in general, shift their investments from one sector of the economy to another.

More education articles »