Huge, odd trade predicts greatness for this stock – CNBC.com

“There is not a lot of credit for that play baked into people’s estimates,” partially due to the fact that it’s an oil play and Southwestern Energy is generally thought of as a natural gas company, Sterne Agee analyst Tim Rezvan told CNBC.com. If it works out, “we think you could see 4,000 to 5,000 barrels [per day], and that’s not really reflected in the Street estimates.”

Rezvan, who expects Southwestern Energy to report news related to Brown Dense with its upcoming earnings, predicts that “shares would sharply outperform on any news related to that play.”

Yet even Rezvan only has a $48 price target on the stock. If the stock rises to $48 by June, this trade would still merely break even.

In fact, out of 27 target prices on the stock compiled by FactSet, only two are above $48, and the mean target is $42.70, which is roughly in line with where the stock is trading.

The bottom line? This options trader is expecting to hear some very good news soon—and is putting serious cash behind that conviction.

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Huge, odd trade predicts greatness for this stock – CNBC.com

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