Hope is fading of a rally in Continental Resources this year.
optionMONSTER's tracking programs detected the sale of 1,467
December 75 calls for $1.35 against open interest of just 1,393
contracts, indicating that a new short position was opened. The
investor bought 1,467 November 85 calls at the same time for $0.05,
but volume was below open interest in those.
This suggests that the investor was previously short the 85s and
closed the trade. Starting a new short position in the December
contracts brought in more income and lowered by $10 the price where
they must sell shares in the Oklahoma wildcatter.
CLR rose 0.48 percent to $68.71 yesterday but has lost 18 percent
of its value in the last two months. The stock had peaked at an
all-time high over $97 in February 2011 but has been working its
way lower since. It now seems to be consolidating below its 50- and
200-day moving averages, which could be leading some chart watchers
to believe that it's turning bearish.
Selling calls is similar to shorting the stock but lets the
investor capitalize on the natural process of
. It also includes big risks if a rally ensues. (See our
The trade pushed total option volume in CLR to almost twice the
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