Energy-service company RPC has fallen about 25 percent in the last two months, but one large trader apparently believes that the bloodletting is coming to an end.
optionMONSTER's tracking systems detected the sale of 4,250 September 12.50 puts in about 1 minute, led by a print of 3,126 that went for $1.05. The volume dwarfed the strike's open interest of just 117 contracts before the trade appeared, clearly showing that this is a new position.
The put seller is looking for RPC to stay above $12.50 through expiration in mid-September. If the stock falls below that strike price, the trader will be on the hook to buy shares at an effective cost of $11.45 once the $1.05 credit from the put sale is included.
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RES gained 1.41 percent to $12.97 on Friday, a day after it was upgraded to "buy" from "hold" at Gabelli. The oilfield service and equipment company, which has been trending lower since hitting a 52-week high of $17.40 in mid-February, gapped below its 200-day moving average after its first-quarter earnings report last Wednesday.
Total option volume in the name exceeded 4,600 contracts on Friday, more than 15 times its daily average for the last month.
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