An unusual call trade tops today's option activity in National Oilwell Varco.
optionMONSTER systems show that a trader bought 1,900 June 67.50 calls for the ask price of $2.46 in against previous open interest of 3,886 contracts. At the same time, he or she sold 3,800 July 70 calls for the bid price of $2.05 in volume well above that strike's open interest of 1,631, so it is a new position.
The trader is rolling their short-call position a month later to a higher strike that is just out of the money . The adjustment doubles the size of the position as well, presumably to make up for losses in the June options.
It is very likely that these options were sold against long shares, at least enough to cover the smaller amount, as part of a covered call position. (See our Education section)
NOV is up 0.59 percent to $69.40 today after trading just shy of $72 last week. The energy-drilling services company have been generally trending higher in the last six weeks from support at $64.
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