The largest trade of the day was the purchase of 5000 April 24/22 put spreads for $0.50 with the stock at 25.00. This fix risk spread will be worth $2.00, making $1.50 profit, if Cheniere is below 22 at expiration, and will incur its max loss of $0.50 if LNG is above 24 at expiration. This is a contrarian play that the stock is overbought and has the potential to sell off into April expiration. This could be a speculative bet or a hedge to a long stock position.
Considering how far off Cheniere’s export terminal is from completion it does not make sense to chase this stock up every day. LNG is 50% above its 200-day moving average, which tells me that the stock is overextended right now. As more investors come to this realization they will stop chasing the stock and it will pull back. This put spread allows you to profit from this by putting risk/reward in your favor.