OptionsHouse

Options Trading News

September 20, 2016  Tue 5:16 AM CT

WFT: SEE CHART GET CHAIN FIND STRATEGIES

A large investor apparently believes that upside potential is limited in Weatherford.

optionMONSTER's tracking programs show that 9,300 Weekly 5.50 calls expiring on Sept. 30 were sold for $0.28 at the same time yesterday. This is clearly a new position, as open interest in the strike was only 275 contracts before the trade appeared.

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)

WFT fell 2.62 percent to $5.58 yesterday and is down 4 percent in the last three months. The oilfield-services provider is scheduled to report earnings after the close on Oct. 25.

Overall option volume was about average in WFT yesterday.

Share this article with your friends


Related Stories

WFT

More heavy call selling in Weatherford

September 21, 2016

Traders were selling calls for the second consecutive session in the oilfield-services provider, which is scheduled to report earnings on Oct. 25.

OptionsHouse

Premium Services

Education & Strategy

Continue to melt up? Think debit call spreads

The U.S. equities market is continuing to melt up. Even though the labor market is stagnant, the Fed keeps hinting that a short term interest rate hike is coming sometime soon.

View more education articles »