How one investor is staying in Golar

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The bulls just can't get enough of Golar LNG.

optionMONSTER's Heat Seeker monitoring program yesterday detected the purchase of 1,000 September 65 calls for $3.20 and the sale of an equal number of September 75 calls for $1.20. A block of 1,000 July 60 calls was also sold for $1.20, but that volume was below the previous open interest in those.

It appears that the investor entered the session holding the July long calls in hopes of a rally in the natural-gas transportation stock. He or she then closed that position and rolled it to a vertical spread in September for an incremental cost of $0.80. The trader now stand to collect $10 if the shares close at $75 or higher on expiration two months from now. (See our Education section)

GLNG rose 0.73 percent to $59.74 yesterday and is up some 50 percent since being recommended on our Market Action webinar in early March. There was also bullish call action in late April, which has yielded profits of about 200 percent.

The company is riding a wave of enthusiasm as surging shale production puts the United States back on the map as a major energy exporter for the first time in decades. Revenue is forecast to reach $129 million this year and more than double in 2015. Related names like Cheniere Energy and GasLog have also outperformed, according to optionMONSTER's researchLAB market-analysis tool.

Total option volume was slightly above average in GLNG on Monday, with calls outnumbering puts by a bullish 6-to-1 ratio.



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.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: GLNG

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