Shares of Entergy have been on a roller-coaster ride for the last three months, but traders are positioning for the next leg to be higher.
About 5,000 August 72.50 calls were purchased yesterday afternoon, led by prints of 1,350 and 1,500 that went for $0.30 and $0.40 respectively, according to optionMONSTER’s Heat Seeker tracking system. This is clearly fresh buying, as open interest in the strike was only 280 contracts before the session began.
These long calls, which lock in a $72.50 purchase price for the stock, are looking for ETR to rally by mid-August. If it remains below that level, however, those contracts will be worthless upon expiration three weeks from tomorrow.
— Option Monster