Someone thinks that Ensco is down but not out.
optionMONSTER's trade scanners detected the purchase of 1,436
October 57.50 puts for $2.90 and the sale of an equal number of
November 57.50 puts for $3.25. Volume was below open interest in
the nearer-dated contracts, indicating that an existing short
position was closed and rolled forward in time.
The investor probably
in ESV when it was trading at a higher level, hoping to keep the
premium. But then it fell below $57.50 and now they face the
obligation to buy shares above the current market value.
Adjusting the position gives them an additional month for the
offshore-drilling company to rebound, while also providing him or
her with an incremental $0.35 of income. (See our
ESV was up fractionally at $54.81 yesterday but is down 8 percent
in the last three months. It's significantly lagged the broader
energy space and other oil servicers during that time.
Total option volume was more than twice the daily average in the
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