Why trader is selling Halliburton puts
Chris McKhann | [email protected]
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.