Learn the trade here. Make it on tradeMONSTER

Options Trading News

May 9, 2013  Thu 10:49 AM CT

OIS: SEE CHART GET CHAIN FIND STRATEGIES
Oil States International hit an all-time high today, and one trader is betting that the energy-services company will hold its gains in the near term.

OIS is up 3.65 percent to $98.95 in midday trading, not far off the intraday high of $99.50 set this morning. The stock has run up from around $75 at the start of last week, fueled by news that activist hedge fund Jana Partners has a 9.2 percent stake in the company.

optionMONSTER systems show a trader sold 3,000 May 95 puts for the bid price of $0.85 on a wide bid/ask spread. This is clearly a new position, as the strike's open interest was just 4 contracts before the trade appeared.

The put selling is a bet that OIS will hold the recent gains through expiration a week from tomorrow. If the stock falls below the $95 strike price--where it was only yesterday--the trader would face the obligation to buy shares at that level. (See our Education section)
Share this article with your friends


Premium Services

Free Webinar Series

The 100K Challenge

Education & Strategy

Anatomy of a butterfly

One of the many esoterically named option strategies is known as a "butterfly." But don't be fooled: Like other advanced...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER