Trade sees Weatherford holding firm
Mike Yamamoto | [email protected]
optionMONSTER's tracking systems detected the sale of 3,000 September 14 puts at the same second yesterday for $0.44. The volume was well above the strike's open interest of 1,107 contracts before the trade appeared, showing that this is clearly a new position.
This put seller will keep the $0.44 credit as profit if WFT remains above $14 through expiration in mid-September. If the stock falls below that strike price, the trader will be on the hook to buy shares at that level. (See our Education section)
WFT was down fractionally to $14.42 yesterday. The energy-drilling equipment and services provider spiked higher after reporting second-quarter results last Wednesday but is now bumping up against a resistance level at its highs that has been tested several times since May.