Bullish Call Position Extended on Pride International (PDE)

Shares of Pride International Inc. (NYSE: PDE) are higher on the session by 0.41%, currently trading at $24.74. The stock has been trading largely lower over the past six months, but appears to have formed a short-term double bottom in June and July.

One options trader believes that shares can rally over 20% over the next month. A call roll was just detected on the July $27.50 and August $30.00 call strikes. The July contracts were sold (on open interest of 12,564 contracts) on the bid and the August contracts were purchased (on open interest of just 8 contracts) on the offer.

This signals a bullish player extending their bet on PDE and actually upping their price target for the name.

Traders willing to get long the shares might look to sell the August $22.50 put and buy the August $27.50 call for a net credit of $0.10. This would give you better odds of having the long call come into the money (only 10.97% versus 20+%) than the above transaction.

Pride International, Inc. is an offshore drilling contractor. It provides contract drilling services to oil and natural gas exploration and production companies through the use of mobile offshore drilling rigs in the United States and international waters. Pride provides the rigs and drilling crews and is responsible for the payment of operating and maintenance expenses.

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