Ensco: Options Traders Turn Bullish

May.26.09 | About: Ensco PLC (ESV)

By David Russell

Options traders apparently believe that offshore oil-drilling company Ensco (NYSE:ESV) is headed higher.

Volume in the June 40 calls rose to 2,071 against open interest of 1,072, according to optionMONSTER's Heat Seeker monitoring program. The calls changed hands for $1.20 to $1.35.

ESV is up 2.18 percent to $35.62 in afternoon trading, after having rallied 38 percent in the last three months. The company was one of three in its industry upgraded on Friday by Deutsche Bank analyst Mike Urban, who expects a rebound in drilling activity.

Traders also sold July 30 puts for $0.95 to generate income, expressing confidence that ESV won't fall significantly from its current price. Volume in the puts leapt past 3,000 against open interest of 158 contracts, according to optionMONSTER's monitoring systems.

(Chart courtesy of tradeMONSTER)