TransCanada puts sold before report

optionMONSTER

TransCanada is getting a vote of confidence before it reports earnings tomorrow.

optionMONSTER's tracking systems show that 2,500 August 45 puts were sold in two blocks for $1.10 and $1.05. Open interest in the strike was just 87 contracts before the trading began, clearly showing that this is a new position.

The put seller is looking for the stock to stay above $45 through expiration in mid-August. If TRP falls below that strike price, the trader faces the obligation to buy the shares. (See our Education section)

TRP rose 0.33 percent to $48.56 on Friday, not far from the 52-week highs above $49 where it traded for much of January. The Canadian energy-pipeline operator is scheduled to release fourth-quarter results tomorrow afternoon.

Friday's put sale made up almost all of TransCanada's total option volume of 2,581 contracts in the session. That was nearly 10 times its daily average in the last month.

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