What's behind put selling in Weatherford

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SymbolPriceChange
WFT13.94-0.26

Weatherford is not far off lows, but one trader sees a floor beneath the stock.

WFT rose 0.33 percent to close at $12.24 yesterday. Shares of the oil-field service company have been trending lower from above $18 for the last four months but last week bounced off support at $11, their lowest level since the 52-week low just under $11 at the start of October.

More than 11,000 January 10 puts traded in institutional-size blocks yesterday, with one large print of 7,380 sold for the bid price of $0.93, according to optionMONSTER's systems. Open interest at the strike was 4,000 contracts at the beginning of the session, so this was a new position.

The put selling is a bet that WFT will hold above $10 through the beginning of next year. The trader is also showing a willingness to buy the shares if they trade below that level. (See our Education section)

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