OptionsHouse

Options Trading News

September 20, 2016  Tue 5:48 AM CT

PEGI: SEE CHART GET CHAIN FIND STRATEGIES

At least one trader is positioning for a possible decline in Pattern Energy.

optionMONSTER's monitoring system detected the purchase of 2,000 November for $2.41 to $2.45 at the same time yesterday. There was no open interest in the strike before the trade appeared, showing that this is new positioning.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

PEGI rose 1.95 percent to $23.54 yesterday and is up 9 percent in the last three months. The utility company's next quarterly results are estimated for pre-market hours on Nov. 3.

Overall option volume was 27 times greater than average in the name yesterday. Puts outnumbered calls by a bearish 13-to-1 ratio.

Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

Continue to melt up? Think debit call spreads

The U.S. equities market is continuing to melt up. Even though the labor market is stagnant, the Fed keeps hinting that a short term interest rate hike is coming sometime soon.

View more education articles »