Why trader is selling calls in Talisman
Chris McKhann | firstname.lastname@example.org
optionMONSTER systems show that a trader has sold 5,000 July 12 calls, with a block of 3,029 going for the bid price of $0.80. There was no open interest at that strike, so this is a new position.
The options were likely sold against a long stock position as a covered call trade. This strategy would be bullish up to the $12 strike price but not beyond. (See our Education section)
TLM is down 1.45 percent to $11.23 this afternoon as it continues to hold support at $11 in place for the last month. This comes after the oil and natural-gas exploration company sold off from a 52-week high above $15 in mid-September and gapped down from above $12 on the last day of October.