Transocean Ltd. (RIG)

[eastunder]

Transocean attracts big bullish trade

http://finance.yahoo.com/news/transocean-attracts-big-bullish-trade-091454852.html

Traders are betting that Transocean will rally after it reports earnings next week.

optionMONSTER's Heat Seeker system detected the purchase of 23,863 March 22 calls in a single print for $0.14 on Friday. Those contracts reached 28,800 by the end of the session, with premiums rising to $0.23. Open interest in the strike was just 2,337 options before the trades occurred, showing that this is fresh buying.

The bullish activity followed heavy volume in the March 21 calls cited by optionMONSTER co-founder Jon "DRJ" Najarian on our InsideOptions Pro service Feb. 9 . Transocean is scheduled to announce quarterly results after the market closes on Feb. 25.

These long calls lock in the price where the stock can be purchased through mid-March no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, providing potentially significant leverage, but the contracts will expire worthless if shares stall or pull back. (See our Education section)

RIG rose 2.25 percent to $19.05 on Friday. The offshore driller plummeted after trading above $45 last summer but has gained 23 percent in the last month.

Total volume in the name on Friday was 64 percent higher than its daily average. Overall calls outpaced puts by more than 2.5 to 1.