Helix Energy is trading lower since its earnings announcement yesterday, but option activity is bullish in the name.
The offshore energy company is down 4.35 percent in midday trading to $10.56.
The stock gapped down this morning after posting a larger-than-expected loss after the market closed yesterday. Helix still has not broken 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 option trader apparently believes that the bleeding is over, as OptionMonster's tracking systems show a block of 2,000 of the June 10 calls picked up for $1.40. This action is well above the open interest of 240 contracts and the average total daily option volume of fewer than 400 contracts, so it represents a new position.
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.
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Chris McKhann is an analyst and writer for OptionMonster.