Bears are on the prowl among oil servicers after an inventory report sent crude prices lower.
optionMONSTER's Depth Charge monitoring program detected protective trades in Baker Hughes, Nabors, and Weatherford. All three use October contracts and have a similar structure, so they may be the work of a single large investor hedging his or her bets.
In BHI, 1,500 October 67.50 puts were bought for $1.54 and equal-sized blocks were sold in the 62.50 puts for $0.37 and the 75 calls for $0.39. The trade cost $0.78 and will earn more than 500 percent if the stock closes at $62.50 or lower on expiration.
A similar transaction surfaced in NBR less than 30 minutes later. This time 3,269 October 26 puts were bought for $0.93, 3,269 October 29 calls were sold for $0.27, and 3,269 October 24 puts were sold for $0.28. That trade cost $0.38 and will earn more than 400 percent from a drop to $24 or lower....MORE
