Traders make bearish bets on energy ahead of OPEC

Options Action; A bearish bet on Halliburton
Options Action: When to buy protection
Options Action: Trader bets $3M on a chip stock

Traders are making some bearish bets on the energy space ahead of Wednesday's big OPEC meeting.

"There's been a lot of put buying in [the XLE and XOP] energy ETFs," Dan Nathan of said Monday on CNBC's "Fast Money." "It looked to be short-term hedging in front of this OPEC meeting on Nov. 30."

Oil closed Monday's session in the green, but doubts over OPEC's ability to agree on a production cut swiftly sent prices tumbling Tuesday.

According to Nathan, there's an oil stock in particular that one trader believes could continue to fall in the next few weeks: Halliburton.

In the eyebrow-raising wager, he noted that someone bought 5,000 of the December 49-puts for $1.45 per options contract. This is a bearish bet that Halliburton could fall to $47.55, down about 1.6 percent from current trading levels. The stock hit a low of $47.06 Tuesday before bouncing back to around $48.30.

"This thing is in a very nice uptrend, I expect this trader is waiting for a move kind of back to those recent lows," Nathan added.

Sign Up for Our Newsletter Options Action

Insight directly from the members of our Options Action panel
Get this delivered to your inbox, and more info about about our products and services.
By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.
Related Tags