Superior Energy Services faces potential resistance at $25, and
a large trader is targeting that level.
optionMONSTER's tracking programs detected volume of more than
7,000 contracts in the October 25 calls, all of which priced for
$0.40. That was near or at the bid, indicating they were sold.
Previous open interest in the strike was just 453 contracts, so new
short positions were initiated.
The investor probably owns shares in the provider of oilfield
services and is writing calls to earn income. He or she is now
obligated to sell the stock for $25, which may be viewed as
resistance because it's roughly the location of the 200-day moving
Selling would raise their effective exit price to $25.40 and
provide cushion to the downside. (See the discussion of
SPN is down 0.89 percent to $23.50 in morning trading and has been
trapped in its current range since the spring. Overall option
volume is 19 times greater than average so far in the session.
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