CNBC reported a million share transaction on Exoon at the close on Friday. Now what would motivate someone to be long with approximately 70 million dollars?
As stated last week the increase in crude price was derived from the Fed printing money and devaluing the dollar, there is no more crude demand driving the price higher. However, from an oil producers point of view the price of crude going up no matter the reason still means more profits.
Chart wise we can see the formation of an ascending traingle where the current price is nearer the bottom trendline.
Looks to me like whoever it is is looking for a run to $75 and making a cool 8-9 million over the next month or so. I wonder if there stop loss is at the $65 level for a risk of $1 mill?
I like the odds here knowing the government has got your back. This is definitely worth cheking out a little further. Perhaps a "IN THE MONEY" vertical CALL spread October 55/60/65/70?
October 2009 Calls all moved more than 10% on Friday alone. Below are the ASK prices per contract at close:
So now we add the strike and the ask price and compare to the close price of $66.09 to see "Value" and or the "Premium" we will have to pay for the time value of the contract:
$55 + $14.15 = $69.15 - $66.09 = $ 3.06
$60 + $10.90 = $70.90 - $66.09 = $ 4.81
$65 +$8.15 = $73.15 - $66.09 = $ 7.06
$70 + $5.85 = $75.85 - $66.09 = $ 9.76
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