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Bearish Activity in Noble Corp, Micron, Chesapeake

Three names in which investors express bearish options action expecting downside in the stocks.

  • Headshot of Karla Yeh Karla hosts and produces Options News and Mad About Options, and writes the Sidewinder report. Karla graduated from Colgate University, where she majored in English and Film and Media Studies.

by Karla Yeh January 6, 2010 11:41 EST Related Symbols: , ,

Noble Corp. (NE) did not announce any news today, but the market expects the company’s earnings announcement on Jan. 27 after the market closes. The stock dropped 60 cents to $42.97 during the first hour of trading, and we saw a bear put spread cross the tape. An investor bought the February 37-40 put spread out of the gate, expressing moderate bearishness in the name.

ONN.tv has covered bullish activity in Micron Technology (MU) throughout the last week, but we saw an investor sell a call spread following the recent bullishness. Out of the gate, the stock climbed roughly six cents to $11.24, and an investor sold the April 8-11 call spread 10,000 times for a premium of $2. It looks like the consistent bullishness we’ve seen has turned into moderate bearishness thanks to at least one investor.

Chesapeake (CHK) could announce earnings sometime around Feb. 16, and the company did not announce any news this morning. The stock dropped roughly 10 cents to $28.87 during the first hour of trading, and we saw the February 30 calls cross the tape 4,500 times thanks to at least one investor who sold the options to take profits (the open interest of the calls is 6,900, which means the investor most likely closed the position). The CHK stock is now just 2% off its 52-week high, and this investor could be looking for a pullback in the stock.

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