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Hyperdynamics draws large put sale

Chris McKhann (chris.mckhann@optionmonster.com)

As Hyperdynamics heads back toward support, a large option trade is betting that the level will hold for the oil and gas exploration and production company.

HDY is up 2.4 percent on the day to $4.63 but has regained only half of yesterday's losses. Shares popped as high as $7 on March 24 before gapping lower the next day on heavy volume with the news of a secondary offering. HDY has continued lower since.

optionMONSTER's systems show that 11,000 HDY options have changed hands, four times its daily average volume. One September 4 print made up almost all of this volume as a trader sold 10,000 puts for $0.65, hitting the bid price. The previous open interest was 2,234, so this is a new opening position.

This put selling is a bet that shares will remain above $4 through expiration. The trader keeps the credit regardless but will be assigned and obligated to buy shares for $4 if the stock is below that at expiration. (See our Educatio section)