Someone apparently thinks that Anadarko Petroleum is headed to
triple digits for the first time ever.
optionMONSTER's Heat Seeker monitoring system detected the purchase
of 2,750 August 90 calls for $4.65 and the sale of a matching
number of August 105 calls for $1.05. The trade resulted in a net
cost of $3.60.
This appears to be a
bullish vertical spread
, a position that will will inflate to $15 if APC closes at or
above $105 on expiration. That would represent profit of more than
300 percent from a 20 percent move in the stock price. (See our
section for more on how to generate leverage with options.)
Volume in the August 90s was below previous open interest, so it is
also possible that today's investor may have closed an existing
position and rolled it to the higher strike. In that case, he or
she probably owns the shares and was using the options as part of a
strategy. The move would raise by $15 the level at which they must
unload their stock.
APC is off 0.03 percent to $86.57 in morning trading but is up 19
percent in the last six months. That's roughly twice the
performance of the broader energy sector in the same period.
Almost 28,000 contracts have changed hands in the Texas-based
company so far in the session, already more than twice its full-day
average. Puts account for barely one-third of that total, which
reflects the bullish bias.
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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