Transocean trade sees more volatility
Chris McKhann | firstname.lastname@example.org
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.