What's behind puts in Endeavour
David Russell | [email protected]
optionMONSTER's tracking systems detected the sale of 3,743 January 2015 5 puts for $0.95 in less than 30 seconds today. Volume surpassed open interest of 3,312 contracts, indicating that new positions were initiated.
The put seller would keep that $0.95 credit as profit if END remains above $5 for the next year, but below that level the trader would face the obligation to buy shares. Given the premium received today, the effective entry price would be $4.05. (See our Education section)
END is down 2.76 percent to $6.70 in midday trading but is up 30 percent in the last month. The energy company, which operates in the United States and United Kingdom, has been climbing from long-term lows in March 2013. Short interest still accounts for 28 percent of the float.
It also consolidated around $5 in November and December, so today's put seller may be targeting that area as long-term support.
Total option volume is 12 times greater than average so in the session.