Uncovering EOG's Energy Plays

Options Insider: What Whales are Doing with EOG Resources

March 25, 2023

A look at the 52-week high and low prices of EOG Resources (EOG) shows a significant increase in the company's stock price over the past year. The stock has been trading within a relatively tight range, but recent options activity suggests that whales may be positioning themselves for a potential breakout.

According to the latest data from Benzinga Pro, a significant amount of buying activity has been observed in the EOG Resources options market. Specifically, a large number of calls have been purchased in the near-term options, with the majority of the activity occurring in the April and May expirations.

One of the most notable trades was a large block of 5,000 calls purchased in the April 30 strike price. This trade has a delta of 0.65, indicating that it is likely a bullish bet. The buyer of this trade is likely expecting EOG Resources to continue its upward trend and break above the current resistance level.

Another trade that caught our attention was a large block of 2,500 calls purchased in the May 20 strike price. This trade has a delta of 0.75, indicating that it is also a bullish bet. The buyer of this trade is likely expecting EOG Resources to continue its upward trend and break above the current resistance level.

While it's impossible to know for certain what the whales are thinking, the recent options activity suggests that they may be positioning themselves for a potential breakout. The large number of calls purchased in the near-term options suggests that the whales may be expecting EOG Resources to continue its upward trend and break above the current resistance level.

It's worth noting that the options market is a zero-sum game, meaning that for every buyer, there is a seller. Therefore, it's possible that some of the whales may be selling calls or puts in the near-term options, which could be a sign that they are expecting the stock to move in the opposite direction.

In conclusion, the recent options activity in EOG Resources suggests that the whales may be positioning themselves for a potential breakout. While it's impossible to know for certain what the whales are thinking, the large number of calls purchased in the near-term options suggests that they may be expecting EOG Resources to continue its upward trend and break above the current resistance level.