Bearish trade hits Kodiak Oil & Gas
Kodiak Oil & Gas is down more than 30 percent in just the last week, and one large trade is positioning for more potential losses.
optionMONSTER's Depth Charge system detected the purchase of 5,000 December 6 puts in one print for $0.15 this morning. Open interest in the strike was a mere 10 contracts before the trade appeared, so this is a new position.
These puts could either be an outright bearish bet or a hedge to protect an existing long position. Either way, they will expire worthless if shares remain above $6 through Dec. 19. (See our Education section)
KOG is up 4.93 percent to $7.23 today. The energy producer has fallen from a high of $16.29 at the end of August and hit a 52-week low of $6.62 on Monday.
Total option volume in Kodiak is already near 8,000, more than 8 times its full-session average for the last month. Only 59 of those contracts are calls.
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