Transocean Ltd. (RIG) Options Traders Keep the Faith

Transocean LTD (RIG) calls are trading at an accelerated clip

by Karee Venema

Published on Feb 11, 2015 at 3:10 PM
Updated on Apr 20, 2015 at 5:32 PM

Transocean LTD (NYSE:RIG) is tracking crude oil lower today, down 4.3% to trade at $18.35. In spite of this, calls are trading at a faster-than-usual clip, and are easily outpacing their put counterparts.

Most active is RIG's February 19.50 call, and according to data from the International Securities Exchange (ISE), a portion of the activity is of the buy-to-open kind. In other words, speculators are gambling on RIG to be sitting north of $19.50 at next Friday's close, when the front-month contracts expire.

Widening the sentiment scope reveals traders have given priority to puts over calls among options set to expire in three months or less. Specifically, RIG's Schaeffer's put/call open interest ratio (SOIR) of 3.58 ranks in the 94th annual percentile, meaning short-term speculators have rarely been as put-skewed as they are now.

Outside of the options pits, sentiment is tilted toward the skeptical side -- which isn't surprising, considering Transocean LTD (NYSE:RIG) has surrendered more than 57% of its value on a year-over-year basis. Short interest, for example, accounts for more 31% of the stock's float. Plus, each of the 15 covering analysts maintains a "hold" or worse recommendation on RIG.


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.
CE Stock Heading into Bullish Month
Celanese stock is coming off a free fall from its all-time-high in late 2019
HD Stock Sinks on Bear Notes, In-Store Changes
Home Depot stock received price target cuts after sharing in-store changes
Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.