Unusual Option Activity in NOV

Oil and gas equipment and services provider National Oilwell Varco

saw its shares spike 8.8% on Thursday following better than expected earnings. On Friday, options activity seems to suggest that one investor is selling to close a long August 70 call position 8,000 times and continuing their bullish sentiment by using the proceeds to purchase the November 75-82.5 call spread on a 10,000 by 15,000 ratio. This opening November spread will reach maximum profits if NOV's shares can close 13.1% higher than today's level, at a price not seen since mid-March 2012, at November expiration. Today's activity has pushed NOV's contract volume to nearly 8 times it's daily average with 39,000 calls trading versus 16,000 puts.