Linn Energy, LLC (LINE) acquires and develops energy assets in the U.S. The company’s stock is currently trading around $27.75 in a 52 week range of $20.35-$39.47. The stock has been very weak this year with shares falling 9.75% year to date. Options traders are expecting this trend downward to continue as we have seen some very bearish action in LINE today. A trader bought 24,277 LINE Apr 26 puts for $0.60. This is a very bearish trade that requires this trader to lay out nearly $1.5 million in premium. With shares of LINE trading well below the Ichimoku Cloud this bearish options order flow provides a signal for a short position in LINE.
Trade: Buying the LINE Apr 26 Puts for $0.60
Risk: $60 per 1 lot
Breakeven: $25.40