Traders are rolling positions forward with the approach of February expiration at the end of next week, as evidenced by activity today in Weatherford.
The option volume in WFT tops 41,000 contracts, more than twice its daily average in the last month. Most of this volume appears to be in one call roll.
A trader bought two blocks of 8,278 March 18 calls for $1 and $1.01 against open interest of 8,228 and, seconds later, sold two blocks of 8,278 February 17 calls for the bid price of $0.86 against open interest of 42,902.
WFT is down 0.84 percent this morning to trade at $17.64. The oil and natural-gas driller is off yesterday's intraday highs, which were the highest since Aug. 5 and just below resistance since that time at $18.
With the February call sale below open interest, this certainly appears to be a roll from those contracts to the higher strike in March. That makes sense, given the increasing time decay of those February options as expiration nears. (See our Education section)
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