Suncor Energy climbed on a strong earnings report yesterday, but
big investors got cold feet late in the session.
optionMONSTER's Depth Charge tracking system detected the purchase
of about 21,000 November 36 puts for $0.36 in volume well above the
strike's previous open interest of just 1,890 contracts. Almost all
the trades hit 40 minutes before the closing bell.
Puts lock in the price where the Canadian oil stock can be sold, so
they move inversely to the shares. Investors use them to speculate
on a drop or to
against a selloff without having to unwind a large position. (See
SU closed 0.5 percent higher at $36.36 yesterday and at one point
was up more than 2 percent. Profit totaled C$0.95 a share, better
than the C$0.87 expected by analysts. Production also rose 11
percent, though guidance was trimmed.
The stock has spent more than a month pushing against the $36.85
level where it peaked early last year, which could leave some chart
watchers afraid that it's at resistance and will drop.
Overall option volume was 14 times greater than average in the
session, according to the Depth Charge. Puts accounted for a
bearish 85 percent of the total.
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