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Diamondback Energy sees call sale

Chris McKhann (chris.mckhann@optionmonster.com)

A large investor is selling calls in Diamondback Energy today.  

optionMONSTER systems show that a trader bought 3,500 December 50 calls for $7.50 in volume below previous open interest of 3,524. Seconds later he or she sold 3,500 June 65 calls for $4 against open interest of just 10 contracts at that strike, so it is a new position.

This is very likely the roll of a short-call position. Those December 50s are well in the money after the recent rise in shares, so the trade was almost certainly done against long stock in a covered-call position . (See our Education section)

FANG is up 1.7 percent to $54.92, though off the best levels on the morning, at new record highs. Shares of the oil and gas company are up more than 200 percent in the last year.

More than 7,000 FANG options have changed hands so far today, already 25 times its daily average for the last month. 

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