Shares of Patterson-UTI Energy (PTEN) are moving higher on the session by 2.90%, trading at $17.41. The stock has been trending higher throughout much of October and is currently testing the 200-day moving average.
With a critical resistance level in play, one trader is putting on a highly leveraged upside trade. A short while ago, the October $17.00 call was purchased 6,000 times, on the offer, for $0.40 just as 6,000 November $15.00 puts were sold, near the bid, for $0.25.
Given current open interest on both strikes, 1,761 and 1,112 contracts respectively, this is clearly new positioning. 30-day implied vol is off slightly today, down 2.9% to 44.38%; 10-day realized vol is registering 43.75%.
This trade is interesting in that it bets on a strong upside move in the short-term (high volume break through the 200-day?), while voicing the opinion that shares will not trade below $15.25 for the foreseeable future.
Patterson-UTI Energy, Inc. owns and operates fleets of land-based drilling rigs in the United States.?