Anadarko Petroleum has fallen more than 27 percent in the last three months, and one large spread is looking for more downside.
APC is down 1.25 percent to $63.93. The oil and natural-gas company rebounded yesterday off its Friday's close, its lowest since Oct. 4, when shares hit a 52-week low. The stock has trended lower since its 52-week high of $88.80 at the end of February and is still below last Wednesday's close.
More than 20,000 APC contracts have already changed hands today, more than twice its full-session average. Half of the action is in one put spread .
A trader bought 3,000 August 60 puts for $3.33 against open interest of 5,796 while selling 6,000 August 50 puts for $1.09, according to optionMONSTER's Depth Charge system. The previous open interest at the latter strike was just 168.
This appears to be a new ratio spread that would profit from APC trading down to, but not much below, that $50 strike. That is where the maximum profit on a put ratio would come, but below that price the trader would face assignment and the obligation to buy the shares. (See our Education section)
More From optionMONSTER
America has no tolerance for wealthy people griping about their financial woes. But they have concerns too.