A large trade combines stock and options in a strategy that will profit from a sharp move higher or lower in offshore driller Transocean.
optionMONSTER’s Depth Charge system detected the purchase of 9,000 November 41 puts for the ask price of $3.65 today. This is clearly a new position, as open interest in the strike was a mere 66 contracts before the trade appeared.
Just afterward, a block of 45,000 RIG shares was bought for $41.81. Combined with the puts, this creates a delta-neutral play that is looking for a big move up or down and/or for volatility to be greater than that implied by the options.
— Option Monster