CNBC Options Action's Dan Nathan spoke on the show about an unusually high put options volume in Transocean LTD RIG and said he believes that the increased activity in puts might be an attempt to protect a long position.
He said that the stock is down 36 percent on the year and it just made a new 10-year low for a second day in a row.
Approximately 2.5 times average daily put volume was traded on Thursday and there was one particularly big trade in put options, with 20,000 traded contracts. Somebody bought 20,000 contracts of the May 26 puts and paid $1.65 for it, committing $3.5 millions in premium for a trade that breaks even around 23 percent lower on May expiration from Transocean LTD's current price.
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