Long-term trade is bullish on Noble
Chris McKhann | firstname.lastname@example.org
Just shy of 30,000 NE options changed hands yesterday, more than 6 times its daily average for the last month. The big trade came in the January 2015 calls.
A trader sold 5,400 of the 45 calls at that strike for $1.97 against open interest of 7,881, according to optionMONSTER's Heat Seeker system. At the same time, he or she bought 5,400 of the 40 calls for the ask price of $3.75 in volume above open interest of 1,655, so that is clearly a new position.
The trader could be opening a vertical spread, paying $1.78 for the chance to make up to $3.22. Alternatively, this could be an investor rolling a long-call position lower to get more upside exposure. (See our Education section)
NE gained 1.5 percent yesterday to close $38.65. The offshore oil-and-gas contractor was at resistance at $39.50 in mid-September but was down at support around $37 two weeks ago.