OptionsHouse

Options Trading News

November 16, 2012  Fri 9:43 AM CT

APC: SEE CHART GET CHAIN FIND STRATEGIES
Anadarko Petroleum has been trapped in a relatively tight range, and one trader sees that trend continuing for the oil and natural-gas company.

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.
Share this article with your friends


OptionsHouse

Premium Services

Archived Webinar

Education & Strategy

Long synthetic call

Long and short Synthetic stock are two of the six basic synthetic positions that exist. Number three on our list is the Synthetic Long Call...

View more education articles »