Show of support in National Oilwell

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National Oilwell Varco slipped yesterday, but one trader apparently believes that further downside will be limited.

optionMONSTER systems show that a trader sold a single block of 5,000 November 65 puts yesterday for the bid price of $4.20. This is clearly a new position, as open interest in the strike was just 896 contracts before the trade appeared.
 
The put selling is a bet that NOV will hold above $65 through expiration in mid-November. The trade can profit, however, with shares anywhere above $60.80 at that time. (See our Education section)

NOV was down 0.85 percent to finish the session at $67.64. Shares of the energy-drilling equipment company have been in a range between $64 and $70 since January.


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