Rice Energy gets vote of confidence
OptionMonster Staff | [email protected]
Our monitoring systems detected the sale of 5,000 January 19 puts for $0.25 at the same second yesterday. This is clearly a new position, as open interest in the strike was a mere 29 contracts before the trade occurred, and follows selling in the July 24 puts two weeks ago.
Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)
RICE rose 2.16 percent to $20.85 yesterday but is down 23 percent in the last three months. The next quarterly report is estimated for after the close on Feb. 23.
Overall option volume was 3 times greater than average.