Today’s tickers: CCL, HES & SUN
CCL – Carnival Corp. – A debit put spread initiated on cruise operator, Carnival Corp., may be a protective strategy or, perhaps, an outright bearish bet that shares in the name will sink following the company’s second-quarter earnings report next Tuesday. Shares in Carnival are up 1.0% at a near six-month high of $34.16 as of 10:50 a.m. ET, bringing the stock’s week-to-date gains up to 8.75%, on optimism slumping oil prices is positive for the cruise industry. It looks like one trader prepared for the shares to potentially reverse gains purchased a 2,000-lot July $30/$32 put spread for a net premium of $0.50 per contract. The position makes money, or provides downside protection, in the event that Carnival’s shares slide 7.8% to breach the effective breakeven price of $31.50. Maximum potential gains available on the spread amount to $1.50 per contract should the price of the stock drop 12.2% to $30.00 within the next five weeks to expiration.
HES – Hess Corp. – The global integrated energy company popped up on our scanners early in the trading session on Wednesday after a sizable three-legged spread was initiated in the November expiry options. It looks like one strategist is selling out-of-the-money puts to reduce the cost of taking a bullish stance on the stock. Shares in Hess are today lower by 0.90% at $43.54 as of 11:30 a.m. in New York. The largest transaction in HES options so far today was constructed with the sale of 2,000 puts at the Nov. $37.5 strike against the purchase of a 2,000-lot Nov. $45/$52.5 call spread done at a net premium outlay of $0.03 per contract. Profits are available on the trade if shares in Hess Corp. rally 3.4% to surpass the effective breakeven point on the upside at $45.03 by expiration. The strategist stands to make as much as $7.47 per contract in the event that HES stock price soars 21.0% to $52.50 at expiration in November. The stock is down more than 35.0% off the February 27th six-month high of $67.86.
SUN – Sunoco, Inc. – A sizable block of call options purchased on Sunoco this morning appears to be a bullish bet that shares in the oil refiner may rally substantially in the near term. The stock today trades up 0.30% at $47.05 just before midday in New York. In the first 30 minutes of trading this morning, one trader appears to have purchased a block of 5,000 calls at the July $49 strike; a position that makes money if shares in Sunoco rise 5.8% to surpass the effective breakeven price of $49.78 by July expiration.
|
Caitlin Duffy |
