Trade sees limited downside in Cheniere
Chris McKhann | email@example.com
On Tuesday the liquefied natural-gas company drew a large July 16 call sale, but yesterday the volume was in short puts. optionMONSTER's systems show that a trader sold 5,947 September 10 puts for $1 against previous open interest of 629 contracts, so this was a new position.
The put seller is betting that LNG will be above the $10 strike price through that September expiration. (See our Education section)
The stock fell 3.4 percent yesterday to close at $12.51, still in the middle of its recent range. The shares, which hit a 52-week high of $18.92 on April 27, dipped to $10.51 on June 4 and were down at $8 in December and $4 in October.
Total option volume in the name was just shy of 12,000 yesterday. Puts outnumbered calls by 2 to 1.