Why trader is selling Halliburton puts

optionMONSTER

A large trade is betting on a floor beneath shares of Halliburton as the energy company continues to climb today.

optionMONSTER systems show that one print in the April 29 puts dominates the action in HAL. A trader sold 11,800 of those puts for the bid price of $0.22 in volume that was above the previous open interest of 10,010, so this is a new position.

The put selling is a bet that HAL will close above the $29 strike price at expiration in mid-April. The trader is also showing a willingness to buy shares if they are below that level, for an effective price of $28.78 when the credit from the put sale is included. (See our Education section)

Currently HAL is up 0.69 percent to $36.56, on pace for the highest close since Sept. 17. The oil and natural-gas company is up from support at $30 that held up through mid-November and have not been below $29 since mid-July.

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