Petrohawk Energy Corporation (NYSE: HK) is almost challenging its 52-week lows today on light trading volume in the stock. And shares are down 2.2% at $15.82. So why is it that there is unusual options trading out in December today? Take a look at the DECEMBER 2010 CALLS trading today:
CALL$ Volume OpInt
$16.00 2,017 737
$17.00 2,445 3,286
$18.00 15,226 2,063
There were also 6,041 contracts of the DEC-2010 $14.00 Puts, versus a meager open interest of only 202 contracts.
The front months saw some unusual activity in the SEPT-2010 $23.00 PUTS at 7952 contracts vs. 8,388 contracts in the open interest. The SEPT-2010 $24.00 PUTS saw 7952 contracts trade so far vs. 8,388 contracts in the open interest.
The company recently tendered debt, in a refinancing after selling $825 million in notes. The company also has two conference presentations coming up.
This is a bet that something solid may be brewing now that it is so low to 52-week lows. At $15.82, its 52-week range is $15.50 to $28.49.