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

74,796,612
  • $56.25 ▼ 1.58%
56,790,499
  • $16.685 ▼ 0.33%
36,528,112
  • $3.80 ▼ 2.56%
28,898,717
  • $7.995 ▲ 0.19%
27,190,369
  • $131.84 ▼ 0.16%
26,206,104
  • $18.2775 ▲ 1.60%
24,050,202
  • $34.045 ▲ 0.99%
23,618,715
  • $6.505 ▼ 2.03%
As of 5/28/2015, 03:59 PM


Find a Credit Card

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