On Monday morning, QEP Resources (QEP) joined the list of names in which we’ve seen unusual options activity in 2014. Shares are up over 15% in 2014, outperforming both the broader market and the energy sector (S&P 500 Energy Sector stocks are up 10.6% this year).
Volume Data
With an average daily volume of under 1.5 million shares, QEP Resources is one of the lesser known names for unusual options activity in 2014. Shares have traded in a 52-week range of $25.93-$35.03, having first crossed the $35 mark intraday on July 17 and again on August 19.
Big Buyer
Yesterday our scanner flagged an institutional buyer come in and buy 9,000 QEP Dec 37 Calls at $0.90 (mid-market). With the potential to control 900,000 shares (over 60% of average daily volume), this order represents an outlay of $810,000 in long premium. August is a notoriously slow month for institutional trading, and this is one of the larger orders we have seen recently. For this trade to break-even at expiration, QEP shares must trade above $37.90.
Having closed Monday’s session at $0.95, the QEP Dec 37 Calls still present a potential opportunity for unusual options activity believers.
