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May 9, 2013  Thu 10:49 AM CT

OIS: SEE CHART GET CHAIN FIND STRATEGIES
Oil States International hit an all-time high today, and one trader is betting that the energy-services company will hold its gains in the near term.

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)
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Education & Strategy

Gamma

As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

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