Options Trading News

September 23, 2016  Fri 11:04 AM CT


A large position is betting that upside potential will be limited for Whiting Petroleum in coming months.

optionMONSTER's market scanners show that 5,389 November 10 calls were sold for $0.30 to $0.35 at the same time today. This is clearly a new position, as open interest in the strike was just 96 contracts before the trade occurred.

Short calls generate income and lock in the price where a stock must be sold. The trade is usually done in conjunction with long shares in a covered-call strategy, reflecting a belief that gains will be limited through expiration. (See our Education section)

WLL is down 3.98 percent to $7.59 in afternoon trading but and has fallen 30 percent in the last three months. The oil and gas producer is expected to report earnings after the close on Oct. 26.

Overall option volume is about average in WLL so far today.

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