Market News

February 15, 2013  Fri 9:48 AM CT

As Transocean gives up gains from yesterday, one trader is looking for the offshore oil and gas driller to make a sharp move higher or lower in coming months.

optionMONSTER systems detected the sale of 5,000 May 62.50 calls for $1.15 this morning. The volume was more than 4 times higher than the strike's open interest of 1,132 before trading began today, clearly showing that this is a new position.

A large block of RIG stock traded less than a minute later as 150,000 changed hands for $56.5333. The combination of stock and options could create a delta-neutral strategy that is focused on changes in volatility, profiting from a big move in either direction. (See our Education section)

RIG is down 5.03 percent to $56.31 this morning after climbing to $59.50 yesterday, a 52-week high. Shares were below $44 at the end of 2012.
News Archives
OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market VIEW FULL REPORT

Education & Strategy

Election Sector Rotation

Sector rotation is the process where mutual funds, portfolio managers, and investors in general, shift their investments from one sector of the economy to another.

More education articles »