Upside Purchased on McDermott International
Upside Purchased on McDermott International
Shares of McDermott International (MDR) are moving lower this morning; currently, MDR is off 1.53%, trading at $10.97. The stock has been consolidating for the past three months, bouncing off of the $10.75 level and finding resistance near the 200-day moving average.
One options trader is taking a shot at the upside today. The November $11 call was purchased 1,000 times, on or near the offer, for $1.10. Given the current open interest of 527 contracts, it is clear that this is new positioning. The strike is currently bid $0.90, at $1.00.
Current overall historical and implied volatility is registering 40% and 36%, respectively. Curiously, at $1.10, the Nov $11 call traded at 51% vol; apparently the trader really wanted to get a hold of the contracts.
McDermott International, Inc. is an engineering, procurement, construction and installation company. The company is focused on designing and executing offshore oil and gas projects worldwide.
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