Encana Corporation (ECA), together with its subsidiaries, is engaged in exploration for, development, production, and marketing of natural gas, oil, and natural gas liquids in Canada and the United States. This is not the first time we’ve seen bullish activity in ECA and it seems that this trader has been right in the past. Today a trader bought 15,000 ECA Oct 23 Calls for $.85. This gives the trader the right but not obligation to buy 1.5 Million Shares of ECA at $23 between now and October. Let’s break-down their trade a little easier.
Their Risk: $85 per 1 lot
Their Reward: Unlimited
Their Breakeven: $23.85
Cash Outlay: $1.275 Million