Options Trading News

Suncor Energy is drawing an interesting call spread as its shares fall to new lows for the year.

SU is down 2.4 percent to trade at $29.08, off its morning low of $28.73 but still at its lowest levels for 2012 so far. Share of the oil-sands development company were near $34 just last week and above $37 in late February.

optionMONSTER's systems show that a call diagonal spread is leading Suncor's volume. A trader bought 4,700 June 37 calls for the ask of $0.04 against open interest of 10,315 and then sold sold 4,700 September 33 calls for the bid of $0.97 versus open interest of 627.

The trade data indicates that this is likely a roll of a short-call position. The trader is buying back calls that they were short at higher prices as those contracts have lost almost all of their value. He or she is then selling a lower strike in the later-dated contracts, likely against long stock in a covered call position. (See our Education section)