Oil States receives vote of confidence
David Russell | firstname.lastname@example.org
OIS is up 3.65 percent to $98.95 in midday trading, not far off the intraday high of $99.50 set this morning. The stock has run up from around $75 at the start of last week, fueled by news that activist hedge fund Jana Partners has a 9.2 percent stake in the company.
optionMONSTER systems show a trader sold 3,000 May 95 puts for the bid price of $0.85 on a wide bid/ask spread. This is clearly a new position, as the strike's open interest was just 4 contracts before the trade appeared.
The put selling is a bet that OIS will hold the recent gains through expiration a week from tomorrow. If the stock falls below the $95 strike price--where it was only yesterday--the trader would face the obligation to buy shares at that level. (See our Education section)