The energy sector has been hot recently, and yesterday the bulls
went after Nexen.
optionMONSTER's monitoring systems detected the purchase of about
10,000 September 17 calls in the Canadian oil and gas company for
$0.91. An equal number of September 16 puts was sold at the same
time for $0.76, resulting in a net cost of about $0.15.
locks in the price an investor must pay to buy shares, while
represents a belief that a stock won't fall below a certain level.
Combining the two trades is exceptionally bullish.
The position is very similar to owning shares but extremely
leveraged because it will double the trader's money for every $0.15
that the stock moves above $17.15. But the strategy also faces huge
potential losses with shares below $16. (See our
NXY rose 1.91 percent to $16.57 yesterday. Although it's down 10
percent in the last three months, the stock has been slowly working
its way higher since early June as investors hunt for bargains in
the energy space.
The company is scheduled to report second-quarter results on
Thursday, which could also provide a potential catalyst to the
Overall option volume was more than 140 times greater than average
in the name yesterday.
(A version of this post appeared on
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