Puts Rolled Lower on Smith International (SII)
June 01, 2010 1:41 PM
Shares of Smith International Inc. (NYSE: SII) are lower on the session by 6.44%, currently trading $35.14. The stock has been falling sharply as of late and is now fighting to hold the 200-day moving average.
The June $44 put was sold near the bid 2,250 times for $9.05 today, just as the June $37 put was purchased on the offer 2,250 times for $3.30. Open interest on the $44 strike is 2,400 contracts and open interest on the $37 strike is 166 contracts.
This suggests that a long put position on the 44 handle was closed out, profits taken, and a new position opened on the 37 strike to bet on further declines and higher profits from a move lower via higher gamma exposure.
Smith International, Inc. is a provider of products and services used during the drilling, completion and production phases of oil and natural gas exploration and development activities.
