The energy bears are active again today, and this time Denbury
Resources is in their crosshairs.
optionMONSTER's Depth Charge monitoring system detected the
purchase of more than 7,000 September 15 puts for $0.40 to $0.50.
All the large blocks crossed during the first three hours of
trading, and volume was more than twice previous open interest.
Roughly 4,100 September 14 puts were sold for $0.10 around the
same time, indicating the use of bearish
. Investors paid a net cost of approximately $0.30 and will earn
233 percent if the Texas-based oil company closes at or below $14
on expiration. See our
for more on how options can be used to generate leverage.
DNR fell 2.05 percent to $15.29 in afternoon trading, and is near
the top of its recent trading range. The stock is also stalling
around its 100-day moving average, which could make some chart
watchers expect a push to the downside.
Energy stocks were extremely active in June and July as bulls
returned to a sector ravaged by negativity toward the global
economy. DNR was one of those,
tripling the money
of some investors in less than a week.
In recent sessions, however, the tone has turned more negative as
bearish indexed trades
in the broader sector.
Overall option volume in DNR is 9 times greater than average so
far today, according to Depth Charge. Puts outnumber calls by
more than 80 to 1.
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