This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

CenterPoint Activity Draws Major Attention

By Pete Najarian, co-founder of OptionMonster

NEW YORK -- It was hard to take my eyes off CenterPoint Energy (CNP) on Tuesday.

The public-utility holding company is engaged in the transmission and distribution of electricity, serving approximately 2 million metered customers in Texas. The company beat on earnings and upped its guidance earlier this month. Its key growth drivers include stable regulated operations, higher rates, ongoing infrastructure development projects and a strong balance sheet.

The options started lighting up around the noon hour Tuesday as I left the "Fast Money Half Time" show on CNBC. The November 20 calls traded in a hurry, with more than 5,000 hitting for $1.05 and $1.10 in just four minutes. A few of the February of 2013 calls traded as well.

Those options lock in the price investors must pay to buy shares, which gives them nice leverage in the event of a rally. But if CenterPoint doesn't move the calls will lose value over time. If it drops, they could become worthless.

CenterPoint rose 0.68% to $20.60 Tuesday, and is bouncing at its 100-day moving average. More than 7,000 calls traded vs. just 50 puts. Total volume was about 14 times normal levels.

Najarian has no positions in CNP.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.48 -1.40%
FB $116.37 -0.31%
GOOG $693.13 0.31%
TSLA $239.88 -3.20%
YHOO $36.38 -0.57%


Chart of I:DJI
DOW 17,701.60 -129.16 -0.72%
S&P 500 2,059.78 -16.03 -0.77%
NASDAQ 4,765.0410 -40.25 -0.84%

Free Reports