Transocean saw heavy put activity as the stock tried to push through resistance yesterday.
The offshore oil and gas driller finished the day at $45.2, up 1 percent on the day. RIG has been trending higher since the end of 2011 after hitting a 52-week low of $38.21, but the stock is still only half of what it was last March.
Topping yesterday's option activity was action in the March 40 puts, where a trader bought 10,000 contracts for the ask price of $1.09, according to optionMONSTER's Depth Charge system. There had not been any previous open interest.
On the surface this appeared to be an outright bearish play, but deeper analysis showed that roughly a minute after the put buying, a block of 250,000 shares was bought for $44.88. This was by far the largest stock print and would make the overall position delta-neutral, or more sensitive to changes in volatility than changes in the stock price.
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