Traders are positioning for more downside potential in Suncor Energy.
optionMONSTER's Depth Charge monitoring program shows that 5,200 March 17 were purchased for $0.72 to $0.90 yesterday. This represents fresh buying, as open interest in the strike was a mere 15 contracts before the session began.
Long puts lock in the price where a stock can be sold, so they make money to the downside. Investors use them to hedge long positions or to speculate on a drop. (See our Coaching section)
SU fell 3.75 percent to $19.23 yesterday and is down 30 percent in the last three months. The Canadian oil-stands developer is expected to announce its next quarterly results in pre-market hours on Dec. 31.
Overall option volume in SU was 3 times greater than average yesterday. Puts outnumbered calls by a bearish 3-to-1 ratio.
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