Offshore driller Transocean Ltd. (NYSE:RIG) has attracted the attention of options traders today, as the stock gains 4.5% to trade at $11.60. In fact, RIG option volume has already surged to an annual high of 89,497 contracts, per Trade-Alert, with put volume of 51,843 contracts representing about seven times the intraday norm.
The most active strike is RIG's May 8 put, where 20,725 contracts have traded -- primarily at the ask price, suggesting they were bought. Most of the action at this out-of-the-money put strike can be traced back to a sweep of 13,725 contracts that changed hands at the ask price of $0.03 shortly after midday.
Amid the increased attention from traders, implied volatility on the May 8 put option has ramped up 7.2 percentage points to 67.6%. For what it's worth, RIG's 30-day historical volatility currently stands at an annual high of 52.8%.
RIG has rallied more than 19% this week amid a broader-based surge in oil prices as the Syria conflict moves back to the geopolitical forefront. The stock's big run higher has RIG trading up 8.6% on a year-to-date basis, but the shares peaked today at $11.74 -- just shy of their year-over-year breakeven level.