Range Resources has been grinding higher, and one investor wants
to give room to run.
optionMONSTER's tracking programs detected the purchase of 2,242
April 92.50 calls for $0.15 and the sale of an equal number of May
95 calls for $0.86. Volume was below open interest at the lower
strike, which suggests an existing position was closed and rolled
He or she probably owns shares in the natural-gas producer and had
sold the contracts as part of a
. Adjusting the trade let the investor collect an additional $0.71
of premium and raised by $2.50 the level at which they must
eventually unload their stock. It also committed them to another
month in the position. (See our
RRC is up 0.53 percent to $88.39 in afternoon trading. The stock
started to rally in November, when it bottomed around $73, only to
stall at $90 in late February. It's been stuck below that level
The next earnings report is scheduled for April 28, before those
May 95 calls expire.
Total option volume is about 6 times greater than average so far in
the session, with calls outnumbering puts by 72 to 1.
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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