Shares of Gulfport Energy have been trying to rebound in recent days, but one large trader apparently believes that further upside will be limited.
The big option trade in GPOR so far today is in the April 62.50 calls, where 6,600 contracts were sold for the bid price of $3.80 on a relatively wide bid/ask spread. This is clearly a new position, as the volume was 10 times the previous open interest in the strike.
Seconds later a print of 283,800 GPOR shares traded for $57.3023, so the calls were likely tied to that stock transaction. The calls could have been sold in a delta-neutral play focused on lower volatility , or they could have been part of a covered-call strategy . The latter would take a maximum gain with shares at or above the $62.50 strike price but would give up profits above that. (See our Education section)
GPOR is up 0.79 percent to $58.89 in afternoon trading. The oil and natural-gas producer was at a high of $69.81 in mid-October but bounced off support at $55 last week.
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