Golar LNG has been ripping to new highs, and one investor is
betting that there is more upside to come.
optionMONSTER's Heat Seeker tracking system detected the purchase
of about 1,000 March 45 calls for $3.37 and the sale of an equal
number of March 50 calls for $1.47, resulting in a cost of $1.90.
Volume was below open interest in the 45s but not the 50s, so there
are two possible explanations for the activity.
One is that both legs of the trade were opening positions, in which
case it was a
bullish call spread
. That would earn a maximum potential profit of about 163 percent
if GLNG closes above $50 on expiration.
The second possibility is that the investor owns shares in the
tanker company and is using the options as part of a
strategy. That would also be bullish because the trader would be
raising their exit price on the stock by $5. (See our
GLNG fell 2.38 percent to $43.53 yesterday, but has more than
tripled since the beginning of the year. The company focuses on
transporting compressed natural gas, which the United States is
starting to export as
Overall option volume was 8 times greater than average yesterday,
with calls outnumbering puts by 22 to 1, according to the Heat
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.
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