OptionsHouse

Options Trading News

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.
Share this article with your friends


Related Stories

PBR

Cramer: Petrobras is a real worry

March 16, 2015

This onetime $350 billion company seems to be sinking toward oblivion. And if its $170 billion of debt collapses all at once, the redemptions for funds sitting with the paper will be horrific.

PBR

Cramer: Fears in Petrobras, Intel

March 13, 2015

Just because the dollar went down yesterday and retail sales were weaker--keeping the Fed's interest-rate hike at bay for a day--it doesn't mean that the dollar will keep strengthening.

PBR

More big put buying in Petrobras

March 5, 2015

Traders are buying puts for the second consecutive day in the Brazilian energy giant, which is nearing its 52-week low from early January.

PBR

Big downside trade hits Petrobras

March 4, 2015

The Brazilian energy giant plunged in mid-October after a major credit downgrade from Moody's and is down more than 34 percent in the last three months with the declining price of oil.

OptionsHouse

Premium Services

Archived Webinar

Education & Strategy

Short Gamma

Last week, we talked about long Gamma. We said that long gamma is acquired by purchasing options and when you...

View more education articles »