Cheniere Energy has been steadily climbing, and one investor expects the trend to continue.
optionMONSTER's Heat Seeker monitoring program detected the purchase of about 26,000 March 22 calls for $0.69 and the sale of about 21,000 March 20 calls for $1.41. Volume was below open interest at the lower strike, indicating that a bullish position was rolled from one contract to the other.
The investor collected a credit of about $1.17 million, likely recovering at least some of their initial investment in the natural gas-transportation stock. He or she remains exposed to further gains in the name and now has even more leverage to a big move because they increased the number of contracts owned. (See our Education section)
LNG rose 1.67 percent to $20.14 on Friday and is up 128 percent in the last year. The stock has been rallying against heavy short interest, punishing skeptics who doubted its business model and worried about its heavy debt load.
Total option volume was quadruple the daily average in the session, according to the Heat Seeker. Calls outnumbered puts by more than 13 to 1.
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