Puts pop in Cheniere Energy Partners
Chris McKhann | [email protected]
optionMONSTER's systems detected the purchase of 3,220 March 20 puts for $1.45 below open interest of 3,599 contracts. At the same time, the trader sold 3,220 June 20 puts for the bid price of $2.10 in volume above open interest and therefore a new position.
This could be a roll of short puts, with the trader buying back the March contracts and selling June puts to collect more premium. Or this could be a short calendar spread, which would be designed to profit if shares move sharply in either direction. (See our Education section)
CQP slipped 0.1 percent to close at $20.48 yesterday and has been range-bound between about $20 and $21 for nearly a month. The company, which operates liquefied natural-gas pipelines, had traded to its 2012 low just under $18 a month ago. Shares had been above $26 as recently as mid-September.
Yesterday's total option volume in CQP topped 7,000 contracts, compared to its daily average of just 365 in the last month.