Noble Energy has pulled back from its recent breakout, but one trader doesn't see the stock heading back to its 52-week lows.
optionMONSTER's systems detected the sale of 2,000 January 70 puts for $0.70. Open interest was just 170 contracts at the beginning of the day, so this is a new position.
NBL is up 0.28 percent to $93.48 in midday trading. Shares of the oil and natural-gas company began the month around $86 and shot past $97 last Friday. The stock has fallen this week but appears to have found support around the $93 level.
Today's put seller apparently expects NBL to stay above its 52-week closing low of $68.57 reached 11 months ago. If the stock is below that level at expiration in mid-January, the trader faces the obligation to buy shares at an effective price of $69.30 when the credit from the put sale is factored in. (See our Education section)
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May 8, 2013
A three-way spread tops today's option activity in the oil and natural-gas company, which posted its highest close in about a month yesterday.
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