Put seller sees end to slide in RPC
Mike Yamamoto | [email protected]
optionMONSTER's tracking systems detected the sale of 4,250 September 12.50 puts in about 1 minute, led by a print of 3,126 that went for $1.05. The volume dwarfed the strike's open interest of just 117 contracts before the trade appeared, clearly showing that this is a new position.
The put seller is looking for RPC to stay above $12.50 through expiration in mid-September. If the stock falls below that strike price, the trader will be on the hook to buy shares at an effective cost of $11.45 once the $1.05 credit from the put sale is included.
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RES gained 1.41 percent to $12.97 on Friday, a day after it was upgraded to "buy" from "hold" at Gabelli. The oilfield service and equipment company, which has been trending lower since hitting a 52-week high of $17.40 in mid-February, gapped below its 200-day moving average after its first-quarter earnings report last Wednesday.
Total option volume in the name exceeded 4,600 contracts on Friday, more than 15 times its daily average for the last month.