As shares of Forest Oil try to recover from a tough year, one trader apparently believes that the stock will hold current levels.
optionMONSTER's systems detected the sale of 4,931 September 7 puts for $0.50. Open interest at the start of the session was just 442 contracts, so this is a new position.
The put selling is a bet that FST will be above the $7 strike price by expiration on Sept. 21. If the shares are below that level, the trader faces the requirement of buying the stock.
Last Thursday our Heat Seeker system detected more bullish activity with a combination trade that included the purchase of January 10 calls. (See our Education section)
FST is down 2.49 percent to $7.04 in afternoon trading. The independent oil and gas company has been range-bound between about $6 and $7.50 since mid-June. It was above $13 in April and above $17 last December.
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