Bears aren't finished with Linn
The bears have made money in Linn, and they're not done yet.
About a month ago , optionMONSTER's Depth Charge monitoring program detected buying in the May 31 puts for $2. The energy stock was hitting resistance at its 200-day moving average at the time, and those traders were looking for another downside move.
LNCO has indeed been pushing lower, and by yesterday those May 31 puts had inflated to $3.25. The traders then rolled their positions down to the May 27 puts, which were bought for $1.05. They collected $2.20 in the process and stand to earn further profits if it continues lower. (See our Education section for more on how to use puts .)
LNCO fell another 2.84 percent to $28.06 yesterday. The stock has lost more than one-third of its value since last April.
Overall option volume in the name was more than 7 times greater than average in the session, with puts accounting for a bearish 73 percent of the total.
More From optionMONSTER
