Activity is mixed in the energy sector today, and traders are using options to navigate the uncertain waters.
optionMONSTER’s Depth Charge monitoring program detected short-term bearish activity in ConocoPhillips and the SPDR Energy Fund, with Weekly puts expiring this Friday and the following Friday both purchased. COP and XLE both proceeded to edge lower and those options by more than 70 percent in less than an hour.
Those transactions occurred with catalysts looming in the sector: crude-oil inventories tomorrow and the Organization of Petroleum Exporting Countries’ meeting on Thursday.
On the bullish side, two longer-term trades stood out in Devon Energy and Noble Energy. Both were complex strategies tailored to key chart levels. They also appeared within minutes of each other with similar structures, suggesting they were the work of a single large investor.
— Option Monster