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Call buyers in Atlas Energy (NASDAQ: ATLS)

By Karla Yeh,  February 25, 2010, 03:13:15 PM EDT

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



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