Penn Virginia ended last year with a bang, and a long-term trade
is looking for the rally to continue.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 2,500 January 2016 17 calls for $1.60 and the sale of
an equal number of January 2016 5 puts for $0.60, resulting in a
cost of $1. There was no open interest at either strike, so new
positions were clearly initiated.
locks in the price where a stock can be purchased, while
obligates the trader to buy shares if they fall to a certain level.
Combining the two strategies is highly bullish because the investor
uses the premium from writing puts to buy calls. (See our
PVA is up 5.58 percent to $10.40 in midday trading and has more
than doubled since the beginning of September. Investors have been
piling into the oil stock as production increases and costs fall.
Total option volume in the name is already more than 5 times
greater than its full-session average, according to the Heat
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