A Long-Dated Options Bet on Transocean

Another way that the investor could profit on this trade prior to expiration is if the implied volatility of the option rises. Currently, the implied volatility of these options is roughly 55. If that implied volatility were to go higher, then the calls will go up in price, even if the stock stays at $47. Remember, however, as we pointed out in yesterday's article about T. Rowe Price(TROW Quote) that if implied volatility goes down, the option can go down, even if the stock rallies.

Investors looking at RIG could therefore find this options activity interesting for at least two reasons. The first is that it is bullish activity that could indicate that someone is potentially bottom-fishing after the declines that RIG has suffered. The second interesting point is that this is a long-term trade. These options expire in more than two years, giving the investor plenty of time for a thesis to play out.

Jud Pyle is the chief investment strategist for Options News Network and the portfolio manager of TheStreet.com Options Alerts. Click here for a free trial for Options Alerts. Pyle writes regularly about options investing for TheStreet.com.