Range-bound play targets Anadarko
Chris McKhann | [email protected]
A trader sold more than 5,000 February 77.50 calls, topped by a single print of 3,500 going for $2.48, according to optionMONSTER's systems. The volume was 5 times the strike's open interest at the start of the session, so this is a new position.
The calls could have been sold in a straightforward bet that APC will remain below the $77.50 strike price for the coming months, or they could have been traded against long shares in a covered call position. But in either case the trader sees continued low volatility in the name.
APC is down 0.47 percent this morning to $70.05, trading in range between $65 and $75 that goes back to June. The 30-day historical volatility is down at 27 percent, at the low end of its range and down from 47 percent in late June.