Options Trading News

September 20, 2016  Tue 5:16 AM CT


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.

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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.


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