Encana has been rallying with the rest of the energy sector ahead of its earnings report next week, and one trader is betting that the stock's support levels will hold firm.
More than 3,000 ECA October 18 puts were sold today for $0.75 and then $0.70 against open interest of 2,481 contracts as the stock rose off its morning lows, according to optionMONSTER's tracking systems. The short puts represent a bet that the stock will be above $18 at expiration in mid-October.
ECA is down 2.08 percent today to $20.29. The oil and natural-gas company hit a low of $18.46 on June 26, near a support level that goes back to April but has risen since then.
The company is scheduled to release second-quarter results on Wednesday.
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