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September 21, 2016  Wed 7:47 AM CT

ATW: SEE CHART GET CHAIN FIND STRATEGIES

Traders are betting on a turnaround in Atwood Oceanics, which has plunged in recent months.

optionMONSTER's market scanner shows that some 3,200 October 7 calls were purchased mostly for $0.30 to $0.35 yesterday. This represents fresh buying, as open interest in the strike was a mere 93 contracts before the session began.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

ATW fell 0.61 percent to $6.48 yesterday and is down 48 percent in the last three months.The offshore-drilling contractor is expected to report earnings after the close on Nov. 7.

Overall option volume was 5 times greater than average in the name yesterday. Calls outnumbered puts by a bullish 15-to-1 ratio.

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