Call Spread Purchased on Ensco plc (ESV)

Shares of Ensco plc ESV are lower on the session by 2.60%, currently trading at $38.65. The stock has been rallying over the past few weeks after a sharp sell off in May; the stock is now butting its head against the 50-day and 200-day moving averages. Options traders are betting that the stock could rally from here. Earlier in the session, the September $40/50 call spread was purchased 5,000 times; volume exceeded open interest on the $40 strike, but not on the $50 strike. While this could be a roll lower of options, this looks like it is a fresh call spread position; either way, this trade represents bullishness for the stock. Ensco plc, formerly Ensco International plc, is an offshore contract drilling company. As of February 15, 2010, Ensco's offshore rig fleet included 42 jackup rigs, four ultra-deepwater semisubmersible rigs and one barge rig. Additionally, it had four ultra-deepwater semisubmersible rigs under construction. Ensco's operations are concentrated in the regions of Asia Pacific, which includes Asia, the Middle East and Australia, Europe and Africa, and North and South America.