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By Chris McKhann

Helix Energy (NYSE:HLX) is trading lower since its earnings announcement yesterday, but option activity is bullish in the name.

HLX ChartThe offshore energy company is down 4.89 percent this morning to $10.50. The stock gapped down after posting a larger-than-expected loss after the market closed yesterday but has actually been climbing since the open. HLX didn't break the $10 support level it touched earlier in the month but has seen lower highs since the 52-week peak of $16.92 back in October.

One trader apparently believes that the bleeding is over, as we see a block of 2,000 of the June 10 calls picked up for $1.40. This action is above the open interest of 240 contracts and the average total daily option volume of fewer than 400 contracts.

The implied volatility has fallen, as is usually the case after earnings, and the use of the in-the-money calls reduces time premium paid.

(Chart courtesy of tradeMONSTER)

Source: Helix Call Buying Bucks Downward Trend