RIG – Transocean Ltd. – Shares in the Geneva-based owner of drilling rigs slid again today, this time after Kenneth Feinberg said that just because someone claims against BP’s compensation fund, it wouldn’t preclude them from suing other parties. Transocean’s share price is 7% lower at $48.45 with investors seemingly hell-bent on diving to test the 52-week low of $41.88. Bullish call options are the center of attention in the November series at the $55.00 strike where 5,900 lots have traded at declining premiums of between $4.80 and $3.60 as the calls continue to move further away from the money. The majority appear to have been bought and adding to open interest that doubled last week to around 10,000. It could well be the case that shares will recover but today’s price decline favors call selling for a fast buck.
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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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