In a massive, unusual options bet, one institutional player is making a wager that Southwestern Energy (SWN) will have an especially energetic run between now and June.
On Thursday, one options trader bought 15,000 June 47-strike calls for about $1 each. This trade won't make money unless Southwestern rises above $48 by the middle of June, which is some 15 percent above current levels. If the stock closes below $47 at June expiration, the entire $1.5 million spent on the trade will be lost.
Southwestern Energy, a natural gas and oil exploration company, is set to report earnings on Thursday, Feb. 27 after the bell. Mike Khouw of Dash Financial says the trade is likely a bet on that earnings report.