Encana Corporation, 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 a trader has taken a bullish trade in ECA and it seems that this trader has been dead-on and they are stopping anytime soon. Today a trader bought 15,000 ECA Oct 23 Calls for $.85. This gives the trader the write but not obligation to buy 1.5 Million Shares of ECA at $23 between now and October. Lets 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
Their Risk: $85 per 1 lot
Their Reward: Unlimited
Their Breakeven: $23.85
Cash Outlay: $1.275 Million