Crosstex Energy has rallied back to a key level, and one investor appparently thinks that the top is in.
optionMONSTER's tracking programs detected the sale of 2,200 October 15 calls for $0.70 against open interest of 1,893 contracts. The trade obligates the investor to sell shares of the natural-gas pipeline company at the strike price--a level they haven't seen in almost three years.
XTXI closed flat on the day at $14.24. The stock peaked just below $15 at the beginning of August, plunged below $9 when the market crashed, then came roaring back to its old high. It now seems to be hitting resistance around that recent high, which could make some traders think that a double-top reversal pattern is taking shape.
By selling calls at the $15 level, the investor is expressing a belief that it will remain below $15. He or she could be a shareholder looking to earn income on a long position in the stock or a speculative short. (See our Education section)
Overall option volume in XTXI was 10 times greater than average in the session.
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