Cheniere Energy, Inc. (LNG) Bucks Sector Swoon on Icahn Stake

Carl Icahn has increased his stake in Cheniere Energy, Inc. (LNG)

Dec 8, 2015 at 10:59 AM
facebook X logo linkedin

While energy stocks are getting crushed at home and abroad, Cheniere Energy, Inc. (NYSEMKT:LNG) is charging higher on reports that activist investor Carl Icahn has upped his stake in the firm to 13.8%. At last check, the shares have added 3.6% to hover near $43.69 -- though they remain short-sale restricted after plummeting as much as 13% and hitting a new annual low of $38.71 yesterday.

In today's options pits, LNG calls hold a slight advantage over puts. However, in recent weeks, this has been anything but the case. Across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 3.21 puts for each call during the last two weeks. The corresponding put/call volume ratio outranks 90% of comparable readings from the past year.

Echoing this is LNG's Schaeffer's put/call open interest ratio (SOIR) of 0.70, which sits in the 85th percentile of its annual range. Put simply, speculators targeting options set to expire in the next three months have been unusually drawn to puts over calls.

Option traders aren't the only ones with doubts about LNG. In fact, 24.5 million shares are sold short, equivalent to 14.3% of the equity's total float. At the stock's typical trading volume, it would take more than eight sessions to cover these bearish wagers.

Of course, Cheniere Energy, Inc. (NYSEMKT:LNG) isn't the only company that's won the affections of Icahn. As recently as yesterday, he revealed a 12.1% stake in Pep Boys-Manny Moe and Jack (NYSE:PBY), and the auto parts retailer's board said an Icahn bid could ultimately yield a "superior proposal" -- relative to a competing offer from Bridgestone.

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI