Thursday, August 19, 2010

Unusual Options Trading Seen in Petrohawk (HK)

Stock Assault 2.0 - Artificial Intelligence Stock Market Software

Petrohawk Energy Corporation (NYSE: HK) is almost challenging its 52-week lows today on light trading volume in the stock.  And shares are down 2.2% at $15.82.  So why is it that there is unusual options trading out in December today?  Take a look at the DECEMBER 2010 CALLS trading today:
CALL$    Volume    OpInt
$16.00    2,017    737
$17.00    2,445    3,286
$18.00    15,226    2,063

There were also 6,041 contracts of the DEC-2010 $14.00 Puts, versus a meager open interest of only 202 contracts.

The front months saw some unusual activity in the SEPT-2010 $23.00 PUTS at 7952 contracts vs. 8,388 contracts in the open interest.  The SEPT-2010 $24.00 PUTS saw 7952 contracts trade so far vs. 8,388 contracts in the open interest.

The company recently tendered debt, in a refinancing after selling $825 million in notes.  The company also has two conference presentations coming up.

This is a bet that something solid may be brewing now that it is so low to 52-week lows. At $15.82, its 52-week range is $15.50 to $28.49.

Jon Ogg

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