Unusual Options Activity: Antero Resources (AR)

Oil and gas exploration firm Antero Resources (AR) is down 23 percent over the past year, as energy prices have been trending lower. One trader sees further downside in the coming weeks.

  • Special: See What One Ticker... One Trade... EVERY WEEK...Can Do for YOU
  • That’s based on the April 2024 $22 puts. With 58 days until expiration, 6,411 contracts traded compared to a prior open interest of 141, for a 45-fold rise in volume on the trade.  The buyer of the puts paid $0.96 to make the bearish bet.

    Antero shares recently traded around $23.50, so shares would need to drop about $1.50, or just over 6 percent, for the option to move in-the-money.

    The strike price of the option is still well off the stock’s 52-week low of $19.91.

    Earnings have collapsed 97 percent, and revenues are off by 57 percent thanks to declining oil prices in the past year.

  • Special: $1,300 into $45,000 in just 4 MONTHS?!
  • Action to take: With natural gas companies cutting spending on drilling and reducing activity from low prices, it’s likely that Antero will continue to trend lower for some time. Shares also do not pay a dividend, so investors won’t get paid to wait.

    For now, interested investors should wait for a lower entry price.

    For traders, the April $22 puts are well positioned for any further seasonal weakness in natural gas. Traders can likely see high double-digit returns if shares drop further from here.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

  • Special: See What One Ticker... One Trade... EVERY WEEK...Can Do for YOU