Seadrill Limited (SDRL) Bounce Brings Option Bulls

Traders expect Seadrill Ltd (NYSE:SDRL) to continue bouncing back

May 21, 2015 at 2:40 PM
facebook X logo linkedin

A week ago at this time, Seadrill Ltd (NYSE:SDRL) was getting devastated. Today, however, the shares are blistering up the charts -- surging 8.6% to trade at $13.90, as crude bounces back on overseas unrest. As such, calls are being exchanged at 1.2 times the typical intraday rate.

Among the most popular SDRL options is the weekly 5/29 15-strike call, and data suggests new positions are being purchased. By scooping up these out-of-the-money calls, speculators are banking on the shares to topple $15 by next Friday's close, when the series expires -- a time frame that includes the company's first-quarter earnings report, due out next Thursday, May 28.

Longer term, it's puts that have been the options of choice among SDRL traders. During the past 50 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has accumulated a put/call volume ratio of 1.44 -- higher than roughly two-thirds of comparable readings taken in the last year.

This skepticism isn't all too surprising, considering Seadrill Ltd's (NYSE:SDRL) technical woes. Year-over-year, the shares have plummeted 62%, and more recently, have found a stern layer of resistance at their 160-day moving average.

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI