Hey Traders,
Oil is a hot commodity these days … to say the least.
With gas prices speculated to hit record highs, and the U.S. banning Russian oil imports, there’s plenty of speculation on the trading floor about the best ways to profit from higher prices at the pump.
Tomorrow night we’ll be touching on this – plus other effects of the Russia/Ukraine war, inflation, the Fed, and more – during a special live event.
Make sure you’re signed up to join us right here – you’ll definitely want to be there if you plan to trade in the months ahead!
In the meantime, Big Money is also drilling for oil profits …
And here’s one name someone seems to be especially bullish on …
Transocean Inc. (Ticker: RIG)
RIG, the world’s largest offshore drilling contractor, has rocketed higher over the last few days, fueled by speculations about Russian sanctions and soaring oil prices.
With oil prices pushing to new multi-year highs, the demand for RIG’s services is likely to increase, as oil companies scramble to ramp up production and take advantage of sky-high prices.
During Monday’s trading session alone, RIG shares tacked on 16.8%, touching a two-year intraday high at $5.44, before paring their gains to close at $4.95.
And it happened to be that day that Big Money set their sites on the oil rig contractor …
This Big Money high roller in particular made an interesting move …
While on its surface, this may appear to be a bearish call spread …
It is, in fact, a very bullish move.
This trader is closing out 10,000 of their May 4-strike calls for $1.53, bringing in a hefty $1,530,000.
But instead of calling it a day and cashing in their chips, they instead went even more bullish, rolling their position into 10,000 contracts of the May 6-strike calls for $0.67, or $670,000.
This means this Big Money trader – who was right the first time around – thinks there’s more upside to come for RIG.
And not only are they positioned to take advantage of the upward momentum to come, but they were also able to pocket $860,000 while they’re at it!
The rest of the week has seen similarly bullish action in RIG’s pits.
And call open interest outnumbers puts 1.8-to-1, with 479,701 calls open (123% of normal call open interest levels) compared to just 261,681 puts (only 78% of the normal put open interest).
Big Money is often correct in their assumptions … and following a trader who has already been right once (and pocketed nearly $1 million in profits) is certainly a tempting idea.
After all, it’s following trades like these that have helped my Big Money Flow members and I close out winners like +134% on BSX, +88% on CLF, +94% on IGY, +104% on PPC, and +153% on FLR just since February 25 alone … even as the market has floundered, big time.
My next Big Money Flow show is on Friday at 11 a.m. ET … and that’s also when I’ll be giving out my next Big Money Flow trade.
It’s not too late for you to join us, and position yourself for your own Big Money wins …
Your Only Option,
Mark Sebastian