Offshore oil and gas services company Transocean (RIG) is down over 30% in the past year. One trader is betting shares will stabilize and potentially even head higher through the end of 2026.
That’s based on the December 2026 $3.00 calls. With 865 days until expiration, 10,699 contracts traded compared to a prior open interest of 128, for an 84-fold rise in volume on the trade. The buyer of the calls paid $3.15 to make the bullish bet.
Transocean shares trade for about $5.50, meaning that the options are already about $2.50 in-the-money. Transocean is closer to its 52-week low of $4.45 than its 52-week high of $8.88.
Shares tend to move heavily based on the price of oil, which has been rangebound over the past year.
Transocean has struggled with profitability in this environment, losing $349 million over the past 12 months. Revenues have moved higher by 18%, but the costs of offshore servicing have weighed on profitability.
Action to take: Investors who believe oil prices will see a big jump higher may like shares here. The company’s moderate debt load and exposure to the offshore oil space will pay off best in an environment of soaring oil prices.
For traders, at least one such jump higher in oil is likely over the next 28 months, which is why the December 2026 calls could perform well. Traders can likely see high double-digit returns or better, and currently stand to lose little given how far in-the-money the options are.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
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