One investor is looking for fireworks from this summer from shale-gas producer EQT.
optionMONSTER's Heat Seeker monitoring system detected the purchase of some 1,500 July 85 calls for $1.23 to $1.50 and the sale of a matching number of July 75 puts for about $1.15. Volume was more than 5 times the previous open interest in each strike.
The trade cost about $0.20 to open and will generate leverage from gains in the stock price, which has already appreciated 37 percent this year. It also stands to lose money if the shares fall, especially on a drop below $75. (See our Education section for more on selling puts .)
EQT is up 0.31 percent to $80.84 in afternoon trading. It's been riding a wave of strong production at its Marcellus shale operations and rallied hard after after earnings and revenue beat expectations on April 25. The shares are now consolidating above their previous all-time peaks from 2008, which could make some chart watchers confident that they'll have support around $75.
Total option volume is more than 11 times greater than average so far today, according to the Heat Seeker.
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