Seeking Alpha

Big unusual trade could predict upswing for Southwestern Energy stock

  • CNBC points out unusual recent action in Southwestern Energy (SWN +1.8%), as one institutional player has made a bet that SWN shares would have an especially energetic run between now and June.
  • An options trader yesterday bought 15K June 47-strike calls for ~$1 each; the trade won't make money unless SWN rises above $48 by mid-June, ~15% above current levels.
  • Mike Khouw of Dash Financial thinks the trade probably is a bet on SWN's upcoming earnings report, due Feb. 27, and the blowout size of the trade indicates the trader has, or thinks he has, some knowledge about what the company will report.
Comments (3)
  • rjj1960
    , contributor
    Comments (1370) | Send Message
    Means nothing, he could have dumped his stock holdings and replaced it with an option position. More bang for the buck.
    21 Feb, 12:20 PM Reply Like
  • 2kdhigo
    , contributor
    Comment (1) | Send Message
    Looking for option call buying investing ideas
    23 Feb, 01:52 PM Reply Like
  • kmi
    , contributor
    Comments (4042) | Send Message
    Nice trade
    1 May, 11:25 AM Reply Like
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