Transocean has been rebounding since its earnings report a week ago, and traders apparently believe that it will see more gains in the next several weeks.
optionMONSTER's Heat Seeker system detected the purchase of 3,000 September 49 calls yesterday for $2.25. Open interest in the strike was a mere 200 contracts at the beginning of the day, so this is clearly new buying.
RIG finished yesterday a penny higher to close at $49, so those calls are already at the money . But for the trade to be profitable at expiration on Sept. 21, the stock will need to gain more than the $2.25 premium that those long calls cost. (See our Education section)
Shares of the offshore driller have been on a wild ride, starting 2012 near multi-year lows around $39, running past $59 in March, then losing all those gains and dropping back to the original $39 level. The stock has been stair-stepping its way higher since then.
The company beat profit and revenue estimates but reported shrinking margins in its quarterly results last Wednesday after the close, and shares gapped lower the next day. The company's next earnings release is expected on Oct. 12.
Total RIG calls at all strikes outnumbered puts by 2.5 to 1.
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