Learn the trade here. Make it on tradeMONSTER

Options Trading News

December 14, 2012  Fri 2:14 AM CT

CQP: SEE CHART GET CHAIN FIND STRATEGIES
Cheniere Energy Partners drew a large put trade yesterday as its shares remained trapped in tight range.

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.
Share this article with your friends


Premium Services

Free Webinar Series

Using Options for Income

Education & Strategy

Importance of learning the basics

Personally, I could never understand how so many option instructors start teaching strategies before explaining what an option is. I...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER