Unusual Options Activity in Apache $APA

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visit our website www.OptionsTradingResearch.com
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• Hi, My name is Steve and Im with Options Trading
  Research, today were reviewing our recently
  published article

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• Unusual Options Activity In Apache APA

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• As many of you know, unusual options activity can
  be a valuable indicator as to what traders are
  thinking, and more importantly, where these
  stocks are heading in the short-term.

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• This is something professional options traders
  pay a lot of attention to, and for good reason
  Unusual options activity can tip off big moves
  in a stock, either up or down. So lets take a
  look at some interesting activity that caught
  our eye this week

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• Apache APA is an independent energy company
  focused on fossil fuels. The company generates
  about 10 billion revenues primarily from oil and
  natural gas production. For a good description
  of the company, follow the link.

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• APA is trading at 47.77, down 22 for the year.
  Thats 53 below the 52-week high, and 11 from
  the 52-week low.

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• So what does unusual options activity in APA tell
  us?

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• APA, like many oil and natural gas companies, has
  hit hard times over the past year. The
  precipitous drop in the price of crude oil has
  really taken its toll on fossil fuel production
  companies like Apache. In fact, the stock is
  down over 50 from this time last year.

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• Despite the obvious pricing pressure in the oil
  and gas industry right now, APA still posted
  better than expected results for last quarter.
  The company is performing pretty well despite the
  circumstances.

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• After all, theres only so much management can do
  when the price of oil has been getting hammered
  for so long.
• Heres the deal

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• This week, a trader sold a large block of puts on
  APA. Keep in mind, a put option makes money when
  the underlying stock goes down, so selling a put
  option benefits from a move in the opposite
  direction (or no movement at all).

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• Specifically, a trader sold 25,000 October 47.50
  puts for 2.90. The total cash collected for
  this trade is roughly 7.3 million. Breakeven
  point for the trade is 44.60.

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• Given the open interest, this trade is likely an
  opening position.
• Heres the chart of APA

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• APA has clearly been under pressure for the last
  year. The stock has struggled as the price of
  crude oil has continued to fall. The share price
  has been below the 50-day moving average for some
  time now, but it does appear to have ticked up in
  recent days.

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• This trade suggests APA may have put in a bottom.
  The most recent earnings did shed some positive
  light on the company, despite headwinds from
  falling oil prices. Moreover, 7 million is a
  pretty big bet that the stock isnt going to drop
  below 45.

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• Its even more aggressive considering theres
  virtually unlimited loss potential with this type
  of put selling strategy.

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• More Options Trading Ideas

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• Keep in mind, theres a lot more unusual options
  activity going on than what we discuss here. We
  just try to bring you what we feel are the most
  significant ones and the ones you might actually
  be able to make some money on!

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