RIG Rakes in Options Amid Volatile Week

Transocean options are trading at three times the average intraday volume

Oil and gas drilling company Transocean Ltd (NYSE:RIG) is taking a steep fall on the charts today -- alongside much of the energy sector -- pulling back after the Organization for Petroleum and Energy Countries' (OPEC) production cut announcement caused a Monday surge. RIG is down 13.3% to trade at $2.48 at last check, heading toward five-straight days of double-digit price moves, and in response to the volatile week, options traders are flocking.

So far today, 59,000 calls and 55,000 puts have crossed the tape -- call volume that is three times the average intraday volume, with puts running at seven times what's typically seen. Most popular is the June 2 put, followed closely by the June 3 call, with new positions being opened at the former. The June 3 call is also in the top 10 open interest positions.

On the charts, RIG's Monday rally was capped by its 200-day moving average, and the stock has since fallen back to the $2 level. The shares are still up around 80% in the last three-month period, but prior to the last five days have traded within a tight range between the $1 and $1.75 level. It's worth noting that RIG sports a 14-day Relative Strength Index (RSI) of 67 -- on the cusp of "overbought" territory, suggesting this two-day breather might have been in the cards.