More than 100,000 call options traded in Anadarko (APC), with one spread accounting for 85 percent of the volume. 59,000 Jan 80 calls were sold on APC at $1.15 and 27,000 Mar 75 calls bought for $5.25 per contract. Open interest in Jan 80 calls is 81K and the largest block of OI in the name. Much of the interest dates back to Jan 80 – 95 call spreads on 7/19, 30000X, and a straight call buyer on 9/24, 30000X. The 95 leg of the spread has since been closed out (see 9/28 color). Now the Jan 80s are being liquidated, while a new position in Mar 75 calls opened in anticipation for gains in the stock through early-2013. Shares are up $1.71 to $75.22 today, as the company has presented at Capital One and Wells Fargo energy conferences back-to-back yesterday and today.
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.