Traders are looking for Spectra Energy to hold its ground through the end of next week.
optionMONSTER's monitoring programs show that more than 7,000 December 23 puts were sold for $0.30 to $0.55 on Friday. Volume was more than 42 times open interest at the strike, which indicates that new money was put to work.
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 the risk of a big drop is limited. (See our Coaching section)
SE fell 4.38 percent to $23.56 on Friday and is down 16 percent in the last month. The natural-gas company's next quarterly report is estimated for Feb. 3.
Overall option volume in the name was 11 times greater than average.
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