Seadrill draws upside bets
Someone sees upside in Seadrill.
optionMONSTER's tracking program detected the purchase of 20,000 June 3.50 calls for $0.65 to $4.10. Volume was more than 80 times open interest at the strike, which indicates new money was put to work.
Calls fix the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. (See our Education section.) Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction.
SDRL rose 121.11 percent to $5.97 on Friday but is down 56 percent in the last three months. The next quarterly report is estimated for pre-market hours on May 26.
Overall option volume was 30 times greater than average.
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