Call buyers in Atlas Energy (NASDAQ: ATLS)

By
A A A

Following a worse-than-expected jobless claims report, the S&P 500 SPDRs ( SPY ) has dropped $1.52, or more than 1%, to $109.30. The at-the-money March 110 straddle is priced at $4.02, or roughly 3.6% of strike (meaning investors are pricing in a 3.6% move in the near-term between now and March expiration).

While the SPY is trading down roughly 1.3% this morning, shares of Atlas Energy Inc. (NASDAQ: ATLS ) have declined more during the first hour of trading, losing almost 2% of their value. However, it looks like at least one investor expects later-term upside.

At 9:53 a.m. EST, an ATLS option investor bought a hefty number of later-dated call betting on upside. More than 5,000 out-of-the-money June 35 calls crossed the tape a nickel below the ask price of $1.35 per contract. These calls have an implied volatility of 36%, have an dropped 20 cents on the day so far.

ATLS did not announce any news this morning, but published reports said the company is searching for a joint venture partner for its Marcellus Shale acreage. ATLS shares are currently trading down 82 cents to $31.45.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Options

Referenced Stocks: ATLS , SPY

Karla Yeh

Karla Yeh

More from Karla Yeh:

Related Videos

Stocks

Referenced

Most Active by Volume

91,252,153
  • $13.78 ▼ 4.31%
68,133,496
  • $12.93 ▲ 6.77%
57,268,074
  • $46.13 ▲ 2.47%
43,432,023
  • $105.22 ▲ 0.37%
40,880,685
  • $13.46 ▲ 8.90%
40,712,405
  • $98.62 ▲ 0.82%
39,776,976
  • $16.72 ▲ 0.72%
34,688,871
  • $11.16 ▲ 3.05%
As of 10/24/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com