By Pete Najarian, co-founder of OptionMonster
NEW YORK -- Transocean (RIG) is attracting upside option activity as the offshore driller tries to break out of a tight range.
More than 2,700 January 49 calls traded in a strong buying pattern Wednesday, led by a print of 1,925 that went for 48 cents, according to OptionMonster's real-time tracking systems. The volume was six times higher than the strike's open interest of 433 contracts at the beginning of the day, indicating that these were new purchases.
The calls, which lock in the price where traders can buy the stock, are looking for Transocean to gain roughly 7% by expiration on Jan. 18. The oil and gas exploration company is scheduled to report results for the fourth quarter and all of 2012 on Feb. 24.The stock was down fractionally Wednesday to close at $46.41. Shares have been trapped between $45 and $50 since July, and they are now sitting just above their 50-day moving average. Total option volume in the name was more than double its daily average in the last month. Calls outnumbered puts by more than 2.5 to 1. Najarian has no positions in RIG.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV