Newfield puts rise ahead of report
Traders are taking downside positions in Newfield Exploration ahead of its earnings report next week.
More than 5,800 August 31 puts were purchased for $1.50 to $1.75 this morning, according to optionMONSTER's Depth Charge tracking program. This is clearly fresh buying, as open interest in the strike was a mere 84 contracts before the session began.
Long puts lock in the price where a stock can be sold no matter how far it might drop, gaining value in a selloff. The contracts can be purchased either as an outright bearish bet or a hedge on a long-stock position. (See our Education section)
NFX is down 1.93 percent to $30.92 in early trade today and has fallen more than 19 percent this year. The oil and natural-gas producer broke below its 200-day moving average last week for the first time since March.
Today's overall option volume in the name is nearly double its full-session average for the last month. Only 68 calls have traded so far, a reflection of the bearish sentiment.
More From optionMONSTER
