OptionsHouse

Options Trading News

August 7, 2013  Wed 2:45 AM CT

Weatherford is trading just shy of its 52-week high, and one trader apparently believes that any pullbacks will be minimal.

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.
Share this article with your friends


Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

View more education articles »