NRG Energy has potential resistance at $23, and one investor is
targeting that level.
optionMONSTER's monitoring programs detected the sale of about
4,700 September 23 calls for $0.50 against open interest of just
875 contracts. The trade was probably the work of a shareholder in
the power-generation company who's looking to generate income by
using a covered call strategy.
NRG is down 2.38 percent to $21.73 this afternoon. While it's
gotten hammered along with the rest of the market in the last
month, it's still up more than 10 percent so far in 2011, while the
S&P 500 is down about 9 percent.
The shares started coming back to life in the first four months of
the year after a long period of weakness. It found support around
$23 in June, which could make some investors think that will now
Writing calls at that level will compel them to sell shares if NRG
goes back to $23. But including the credit earned, their exit price
will be $23.50. (See our Education section)
Overall option volume in NRG is 5 times greater than average so far
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