The bulls came back to Cheniere Energy after a long hiatus
yesterday, and the move paid off almost instantly.
optionMONSTER's Heat Seeker system lit up with unusual activity in
October 34 calls
late yesterday morning, with traders snapping up big chunks for
$0.23. We immediately flagged the trades in our chat room and via
email to our subscribers, and it was a good thing we hurried.
Barely 10 minutes later, buy orders started hitting the stock,
driving it up $1 from its level when the calls appeared. Those
more than doubled
to $0.50 in the process.
lock in the price where shares can be purchased in the natural-gas
tanker company, letting investors cheaply control moves to the
upside. And that's exactly what happened yesterday. (See our
LNG ended the session up 4.2 percent to $30.04. Few names have seen
option activity as lucrative as Cheniere has in recent years,
providing winner after winner as the stock ascended in 2011 and
2012. One trade early this year quadrupled in value by March.
More than 32,000 of those October 34 calls would change hands by
the end of yesterday's session, dwarfing previous open interest of
just 12 contracts. Total option volume was 20 times greater than
average in the name.
(A version of this post appeared on
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