Harvest Natural Resources (HNR) gaps higher today and is trading up $1.55 to $7.81 after the company said it’s in talks to sell a 32 percent stake in Petrodelta SA. The stock, which had been mired in a slump for months and is down 55.3 percent from a year ago, is up today on heavy volume of 3.6 million shares. By way of comparison, typical volume is about 300,000. Meanwhile, 5,645 calls and 950 puts traded on the Houston, TX oil and gas company, which is 11X the daily average. June 7.5 and 10 calls are the most actives and have traded in small lots. The top trade is 180 Jun 10 calls for 50 cents when the market was 45 to 50 cents. Meanwhile, implied volatility is moving up with the underlying. IV in HNR options is up 9.5 percent to 81 on the day.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.