Transocean (RIG) Options Traders Keep the Faith

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

Feb 11, 2015 at 3:10 PM
facebook twitter linkedin

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.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners