Learn the trade here. Make it on tradeMONSTER

Options Trading News

December 9, 2013  Mon 4:32 PM CT

NBL: SEE CHART GET CHAIN FIND STRATEGIES
Noble Energy has pulled back to support, and traders are drawing a line in the sand.

optionMONSTER's tracking systems detected the sale of 1,500 December 67.50 puts for $0.90 and the purchase of an equal number of December 65 puts for $0.30. Volume exceeded open interest at each strike, indicating that new positions were initiated.

Known as a put credit spread, the transaction resulted in a credit of $0.60, which the investor will keep if the Houston-based oil and gas stock closes at or above $67.50 on expiration at the end of next week. The trader faces a maximum loss of $1.90 at $65 or lower. (See our Education section)

NBL fell 1.31 percent to $68.59 yesterday and has been pulling back since it hit an all-time high of $78.01 six weeks ago. The stock is now back around the same $68 level where it hit resistance before breaking out in October, which could make some chart watchers expect support. Selling a put spread is a typical way to exploit such a pattern.

Total option volume was quadruple the daily average in the session.
Share this article with your friends


Related Stories

NBL

Largest option trades in equities

July 2, 2014

Nearing the halfway mark in today's session, here are the individual equity names with the most call and put buying on optionMONSTER's ActionTracker data system.

Premium Services

Free Webinars

Education & Strategy

Why traders hedge with sector ETFs

Many people who are not familiar with options think that they increase risk, but their first and primary purpose is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER