Market News

October 17, 2016  Mon 11:32 AM CT

A large trader apparently believes that upside potential is limited in MDU Resources.

optionMONSTER's monitoring systems detected the sale of 3,000 November 25 calls for $0.60 to $0.70 today. Volume was more than 47 times the open interest in the strike, showing that this is a new position.

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)

MDU is down 0.48 percent to $24.75 in afternoon trading but is up 5 percent in the last month. The energy company is scheduled to report earnings after the close on Nov. 2.

Overall option volume in the name is 214 times greater than average so far today.

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