RDC – Rowan Companies, Inc. – The provider of international and domestic contract drilling services attracted near-term bullish options investors this morning with the value of its shares rallying as much as 9.2% to an intraday high of $28.17. Shares in Rowan and other offshore drilling stocks are up sharply along with a 3% up-tick in oil and a 4.4% increase in the Offshore Drilling Stocks Index following the release of better-than-expected U.S. manufacturing data for the month of August. Bullish players honed in on September $28 strike calls, purchasing approximately 2,100 contracts for an average premium of $0.79 a-pop. Investors long the calls are poised to profit should Rowan’s shares exceed $28.79 ahead of expiration day this month. Shares may have also been helped higher this morning by news RDC signed a 3-year contract with Saudi Arabia’s state-owned national oil company, Saudi Aramco, for two rigs.
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Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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