The drilling group is seeing some action this month, after Ensco plc (ESV) earlier this week, now a large investor is selling 18,000 + Jan 2016 $30 PUTS in Transocean Ltd (RIG). The investor sold those puts for $1.04, at the bid, for gross proceeds of almost $1.9 Million.
Clearly this investor knows with certainty that Transocean (NYSE:RIG) has nowhere to go but up. Of course with the drillers sector on fire now, this appears to be a pretty good bet, even without insider knowledge.
Transocean (RIG) is trading at $44.51 at 1 PM, down 13 cents today. This large put sale occurred as RIG was trading at it’s low of the day.
It appears Transocean (RIG) has formed Transocean Partners which is in the process of a $350 Million IPO.
Transocean (RIG) announces q2 earnings on Aug 3, 2014.
It could be that a big analyst upgrade is coming soon with corresponding price target increase.
It’s not clear what the investor sees coming down the pipe, but whatever it is, we expect it will be announced sooner rather than later. This despite the fact they sold the long term puts.