One investor thinks that Anadarko Petroleum is in for a bumpy
optionMONSTER's monitoring systems detected the purchase of 30,000
January 80 calls for $3.50. Barely one minute later, a block of 1.2
million shares was sold, indicating the use of a so-called
and short stock offset each other, making them agnostic on the
share price. Instead, the trader wants
to increase, which would drive up the value of the calls.
The strategy normally employs
several months until expiration
because they're more sensitive to changes in volatility. (See our
Implied volatility in the oil driller has started to rebound from
long-term lows and now stands at 30 percent. APC closed Friday at
$75.59, up 2.02 percent.
Almost 120,000 contracts traded in the name, roughly 10 times their
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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