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Mike Khouw Sees Unusual Options Activity In Transocean

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On CNBC's "Options Action", Mike Khouw spoke about unusually high options volume in Transocean LTD (NYSE: RIG). The options trading volume was two times the average daily options volume.

During the trading session, Khouw noticed a sale of 20,000 contracts of the Jan. 9 puts and a purchase of 10,000 contracts of the Jan. 11 calls for approximately even money. If the stock trades below $9 at the January expiration, the trader is going to have to buy the stock for $9. If it trades approximately 5 percent higher, the trader is going to make a profit on the trade.

Posted-In: CNBC Mike Khouw Options ActionOptions Markets Media


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