More puts sold in Oasis Petroleum
Traders are selling puts in Oasis Petroleum for the second time this week.
OptionMonster's monitoring programs show that 4,000 December 11 puts were sold for $0.25 and $0.30 at the same second on Wednesday. This is clearly a new position, as volume was more than 5 times the open interest in the strike, and follows selling in the December 13 puts on Monday.
Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)
OAS rose 0.77 percent to $13.15 on Wednesday and is up 39 percent in the last three months. The oil and natural-gas company's next quarterly results are estimated for release after the close on Feb. 23.
Overall option volume was about average in OAS on Wednesday.
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