IB Options Brief: Anadarko Petroleum Corp. (APC)
APC ñ Anadarko Petroleum Corp.
Options plays initiated on oil and gas exploration and development company, Anadarko Petroleum Corp., today are looking for a rebound in the price of the underlying in the near term. Shares in APC, up 0.90% this afternoon at $67.35, have been hit hard in recent months, down nearly 25.0% since February. Traders preparing for shares to reverse course appear to have purchased around 5,000 calls at the June $70 strike against the sale of roughly the same number of calls up at the June $75 strike, all for an average net premium outlay of $1.14 per contract. The bull call spread may be a profitable strategy come June expiration in the event that Anadarkoís shares rally 5.6% to exceed the average breakeven price of $71.14. Maximum potential profits of $3.86 are available on the position if the price of the underlying gains 11.4% to top $75.00 by expiration.
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Equity Options Analyst
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