A Massively Profitable Short in Cheniere Energy, Inc. (LNG)

Cheniere Energy, Inc. (LNG) is a company that is engaged in business involving natural gas. The company’s stock is currently trading around $65.95 in a 52 week range of $38.42-$85.00. The stock has been massively outperforming the market this year with shares rallying nearly 53% year to date. Recently however, the stock has been under pressure. LNG shares have fallen by more than 21% over the past 3 months and are selling off by over 6.6% in today’s session after large blocks of puts were bought.

Earlier this morning a trader bought 2,500 LNG Dec 12th weekly 66 Puts for $0.61. This trade was the first order to hit OptionHacker this morning and hit as the stock was trading above $70.00. The selloff in LNG after these puts hit made this an extremely profitable trade with this line trading as high as $2.05 on the day.

Trade: Risking $1,000

Buying 16 of the LNG Dec 12th weekly 66 Puts for $0.61
Risk: $61 per 1 lot
Breakeven: $65.39

With these puts trading as high as $2.05 a trader could have made $2,304 on this trade in a matter of hours.

Andrew Keene

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