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National Oilwell seen holding support

Chris McKhann (chris.mckhann@optionmonster.com)

A trader is betting that National Oilwell Varco will hold recent support in coming months.

optionMONSTER systems show that a trader sold 2,465 NOV May 65 puts for the bid price of $3.70. The volume was well above the strike's open interest of 1,477 at the beginning of the day, so this is a new position.

The put selling is looking for NOV will hold above $65 through the May expiration. The trader also faces the obligation to buy the shares if they are below the strike price at that time, effectively for $61.30 when the credit from the put sale is included. (See our Education section)

NOV is up fractionally this morning at $68.86. Shares of the oilfield-services company bounced off support at $65 last week, its lowest level since the start of July.

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