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How the bears are drilling into Cameron

The bears apparently think that Cameron may be heading lower.

optionMONSTER's Depth Charge monitoring system detected the purchase of 2,016 January 49 puts for $2.20 and the sale of 2,016 January 42.50 puts for $0.65. Roughly the same number of January 52.50 calls were sold at the same time for $2.07 and $2.08.

The trade resulted in a credit of about $0.52 and will earn an additional $6.50 if the provider of oil-field services closes at or below $42.50 on expiration. It combines elements of a bearish put spread with a collar trade and was probably the work of an investor who owns shares. (See our Education section)

CAM dropped 3.06 percent to $48.54 yesterday and is down more than 5 percent in the last week. Analysts have been turning bullish on the company in the last month amid stronger expected growth in Asian regions, but the shares have failed to hold their ground after gapping higher at the end of November.

Based on yesterday's activity, traders apparently think that CAM may break through support at its current levels and push back toward early-August lows.

Overall option volume was about triple the daily average in the name, according to Depth Charge.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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