Options Trading News

September 21, 2016  Wed 5:16 AM CT


Traders were selling calls in Weatherford yesterday for the second session in a row.

optionMONSTER's monitoring systems show that 9,601 Weekly 5.50 calls expiring on Oct. 7 were sold in one print for $0.23 yesterday. Volume was more than 150 times the strike's open interest, showing that this is a new position and following heavy selling in September Weekly calls one day earlier.

Short calls generate income and lock in the price where a stock must be sold. The trade is usually done in conjunction with long shares in a covered-call strategy, reflecting a belief that gains will be limited through expiration. (See our Education section)

WFT fell 2.87 percent to $5.42 yesterday and is down 11 percent in the last week. The oilfield-services provider is scheduled to report earnings after the close on Oct. 25.

Overall option volume in the name was twice its daily average yesterday.

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