Options Trading News

January 4, 2013  Fri 11:16 AM CT

A large trade is betting on a floor beneath shares of Halliburton as the energy company continues to climb today.

optionMONSTER systems show that one print in the April 29 puts dominates the action in HAL. A trader sold 11,800 of those puts for the bid price of $0.22 in volume that was above the previous open interest of 10,010, so this is a new position.

The put selling is a bet that HAL will close above the $29 strike price at expiration in mid-April. The trader is also showing a willingness to buy shares if they are below that level, for an effective price of $28.78 when the credit from the put sale is included. (See our Education section)

Currently HAL is up 0.69 percent to $36.56, on pace for the highest close since Sept. 17. The oil and natural-gas company is up from support at $30 that held up through mid-November and have not been below $29 since mid-July.
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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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