A large put trade dominates today's early option activity in offshore driller Transocean.

optionMONSTER systems show that a block of 7,235 September 39 puts was sold for $1.63 against previous open interest of 11,909. At the same time, the same number of September 37 puts were bought for their ask price of $0.57 in volume well above open interest of 4,035 at that strike, indicating that it is a new position.

This could be a credit spread , looking for RIG to be above $39 at the September expiration. But it is far more likely that the trader is rolling the puts lower and back out of the money .

This could be an outright bearish play on the stock, taking the opposite tack of a huge put sale in the name yesterday. Alternatively, however, it could also be hedging a long-stock position , which would ultimately be even more bullish than that put selling . (See our Education section)

RIG is up 1.44 percent to $38.02 this morning. Shares have trended down from $46 two months ago and posted a 10-year low of $37.33 yesterday.


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