Hess has managed to cut some of its steep losses from earlier this year, but a large trade is positioning for another potential drop.
optionMONSTER's Depth Charge system shows that 15,000 January 52.50 puts traded in a strong buying pattern, led by two prints of 7,239 each that went for $3.05 and $3. Open interest in the strike was just 906 contracts at the start of the day, so these were clearly new purchases.
HES fell 0.78 percent to close at $53.56 on Friday, continuing to trade in its recent range of about $52 to $54 in recent days. The integrated energy company has been on a wild ride this year, going from about $67 to $40 from late February to late June and then rebounding to $56 last month with some bullish option activity along the way.
Friday's put buying, however, is preparing for another leg lower. Whether they were purchased as a straight bearish bet or a hedge on a long position , the puts are looking for the stock to fall roughly 8 percent by early next year. (See our Education section)
Overall option volume in the name was nearly triple its daily average. Puts outnumbered calls by more than 14 to 1.
More From optionMONSTER
- How one investor is hedging Vertex
- Bearish play targets Celsion at highs
- What's behind call selling in BioMarin