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March 19, 2013  Tue 3:47 AM CT

PBR: SEE CHART GET CHAIN FIND STRATEGIES
Petrobras has been trying to recover from its lowest levels in more than seven years, but one trader apparently believes that further gains will be limited.

optionMONSTER systems show that a block of 9,976 May 21 calls was sold for the bid price of $0.08 yesterday. This is clearly a new position, as the strike's open interest was just 193 contracts before the session began.

The calls could have been sold naked with an initial bearish bias, but it is more likely that they were traded against an existing long stock position. The latter would create a covered call strategy that is bullish, but only up to the $21 strike price. (See our Education section)

PBR was down fractionally on the day, finishing at $17.79. The Brazilian oil and natural-gas company did climb off the session lows but remained in its range of the last 10 days. The stock fell to $14.40 on March 5, its lowest intraday price since August 2005.

More than 34,500 PBR options traded yesterday, twice its daily average for the last month.
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