Cheniere Energy saw some bearish activity last week, but one trader is apparently willing to wait for a rally.
The liquefied natural-gas tanker company drew a large put trade last Thursday , but a call roll topped its option volume on Friday. optionMONSTER's Heat Seeker system detected the sale of 8,739 September 32 calls for $0.26 and the purchase of 4,900 January 32 calls for $1.50. Volume was below open interest in the September strike but above it in the January contracts.
These trades, which took place within 6 seconds of each other, indicate that an investor is closing a nearer-term long-call position and moving it out four months for a net cost of $1.24. This essentially buys more time for LNG to rally, but the new calls could expire worthless if shares remain below $32 by early next year. (See our Education section)
LNG fell 1.66 percent on Friday to close at $28.42. The stock has been trading in an increasingly tight range since the company missed earnings and revenue estimates in its second-quarter report on Aug. 2.
Total option volume in Cheniere was 15,856 contracts on Friday. Overall calls outnumbered puts by a bullish 38-to-1 ratio.
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