Kenny Polcari On The Whiting Petroleum Offering

Speaking to Benzinga, O'Neil Securities Director of NYSE Floor Opreations Kenny Polcari discussed the Whiting Petroleum Corp WLL stock offering.

Polcari commented that the company made a "huge secondary offering" in an industry that is currently in a state of duress and investors saw an opportunity to take a position in the company when it is in dire need of capital.

Polcari said that the pricing was based on what buyer's were willing to pay as they has no reason to pay more based on the risk.

"The difficulty in the [energy] space is creating opportunities because people who bought [the stock] at $30 may think that it's a steal at $30. If the company can weather this storm...[investors] may look back at $30 and think it was a gift-horse," Polcari said.

Polcari noted that the current price was all about risk and reward because if the company does not turn around, the stock price would go lower.

Whiting Petroleum fell 20 percent Tuesday and closed at $30.39.

Kevin Riley and Brianna Valleskey contributed to this report.