Transocean Options Volume Hits New Highs

Option volume hit an annual high today as RIG rallied

Apr 13, 2018 at 2:54 PM
facebook twitter linkedin


Offshore driller Transocean Ltd. (NYSE:RIG) has attracted the attention of options traders today, as the stock gains 4.5% to trade at $11.60. In fact, RIG option volume has already surged to an annual high of 89,497 contracts, per Trade-Alert, with put volume of 51,843 contracts representing about seven times the intraday norm.

The most active strike is RIG's May 8 put, where 20,725 contracts have traded -- primarily at the ask price, suggesting they were bought. Most of the action at this out-of-the-money put strike can be traced back to a sweep of 13,725 contracts that changed hands at the ask price of $0.03 shortly after midday.

Amid the increased attention from traders, implied volatility on the May 8 put option has ramped up 7.2 percentage points to 67.6%. For what it's worth, RIG's 30-day historical volatility currently stands at an annual high of 52.8%.

RIG has rallied more than 19% this week amid a broader-based surge in oil prices as the Syria conflict moves back to the geopolitical forefront. The stock's big run higher has RIG trading up 8.6% on a year-to-date basis, but the shares peaked today at $11.74 -- just shy of their year-over-year breakeven level.

 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 

300x250 - Banner 3 - v1