Shares of ConocoPhillips slipped yesterday, and one trader sees the stock headed back toward its lows.
COP finished yesterday's session at $71.55, down nearly 1 percent. The energy company's stock has been range-bound since coming up off a 52-week low of $58.65 in early October.
Total option volume in the name topped 48,000 contracts yesterday, almost twice its daily average, with puts outpacing calls by 4 to 1. optionMONSTER's Depth Charge system shows that a trader bought 10,000 May 65 puts for $1.26 and, at the same time, sold 19,000 May 57.50 puts for $0.36.
The volume at both strikes was more than open interest, so this was a new opening ratio spread . The trade takes a maximum profit if COP is down around $57.50 at expiration. Below that price, the trader will be required to buy the shares.
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