2000 ESV Jan 2017 13 puts traded over Jan 23 calls for a .15 credit.
Calls and puts trade in ESV- risk reversal goes up
Shares of Ensco PLC (ESV) are up 1.07 to 17.78 today. ?ESV is near the lower end of the 52 week range.
- Paper traded 2000 ESV Jan 2017 13 put over Jan 23 call for a .15 credit.
- The ADV is 4383 contracts.
- The OI is over 11k contracts per strike.
The volume went up in 2 blocks on the PHLX marked spread.? Total volume is over 6000 contracts per strike.? OI is very high which could signal a close here.? From the pricing out to 2017 an opening risk reversal to pick up cheap shares seems most likely.? Either way the trade is net long delta.
- IV 30 is trading for 56%.
- HV10 is trading for 60%.
- IV 30 is trading below the HV 10.
Ensco plc (Ensco) is a global offshore contract drilling company. The Company provides offshore contract drilling services to the international oil and gas industry.