Cheniere Energy (LNG, quote) has been on trek higher since June 4th drop with the last 8 session flying much higher as the U.S. looks to natural gas as a bridge fuel.
Bullish Options in Cheniere Energy
Our screeners are finding bullish activity within the options market. Earlier today at 11:36:06 a.m. ET our screeners caught a single 731 contract purchase of October 18 Calls for $0.60.
Open Interest (OI) in calls for LNG have been climbing higher for the last few trading sessions and two hours into today’s trading sessions call activity out weighing put activity by nearly 5 to 1.
Option trades could be setting their sights on LNG’s long term growth prospects to build LNG export terminals that will have the potential to send natural gas globally.
The U.S. has a world’s largest supply of natural gas and can become highly profitable and sought after as a clean fuel.
Cheniere Energy Core Business Summary
Cheniere Energy, Inc. is an energy company primarily engaged in liquid natural gas (LNG) related businesses. The Company operates in three segments: LNG terminal business, natural gas pipeline business, and LNG and natural gas marketing business. The Company owns and operates the Sabine Pass LNG terminal in Louisiana through its 88.8% ownership interest in Cheniere Energy Partners, L.P. Cheniere also owns and operates the Creole Trail Pipeline, which interconnects the Sabine Pass LNG terminal with natural gas markets in North America.
Cheniere Energy – LNG’s bottom Line
For those looking longer term in this name can look to January 2013 straight out right call option directional play. Consider looking at the Jan13 16 Calls for $2.55, those looking to reduce their cost can consider selling the Jan13 18 calls as well effectively placing a vertical order for $1 but remember profits will be capped by the difference of the two strikes.