Market News

November 25, 2016  Fri 5:16 AM CT

Traders are selling puts in Oasis Petroleum for the second time this week.

OptionMonster's monitoring programs show that 4,000 December 11 puts were sold for $0.25 and $0.30 at the same second on Wednesday. This is clearly a new position, as volume was more than 5 times the open interest in the strike, and follows selling in the December 13 puts on Monday.

Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)

OAS rose 0.77 percent to $13.15 on Wednesday and is up 39 percent in the last three months. The oil and natural-gas company's next quarterly results are estimated for release after the close on Feb. 23.

Overall option volume was about average in OAS on Wednesday.

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