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February 15, 2013  Fri 9:48 AM CT

RIG: SEE CHART GET CHAIN FIND STRATEGIES
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.
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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