Venture Global Put Buyers Gain Nearly $2 Million as Shares Slump
(Bloomberg) -- An investor who bought a large number of Venture Global Inc. put options last week is sitting on a paper profit of almost $2 million after shares plunged early Friday.
The liquefied natural gas developer’s stock dropped as much as 23% after the company lost an arbitration dispute with BP Plc over the sale of cargoes. It was a surprise, since Venture Global had prevailed in a similar case against Shell Plc.
On Oct. 2, about 20,000 lots of February $10 puts were bought for $0.50-$0.60 each, betting on a price decline and a pickup in volatility. With the contracts worth around $1.50 early Friday, the paper profit is more than $1.8 million. It doesn’t appear that the buyer has cashed in so far, as Friday’s volume is just 571 lots.
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