Bulls Return to Baker Hughes (BHI)

Shares of Baker Hughes Incorporated BHI are lower on the session by 0.42%, currently trading art $40.09. The stock has been moving largely lower over the past six moths, albeit in a volatile fashion, but appears to have found a firm bottom around $37.50. One options trader is making a large, bullish bet on BHI today. Just a short while ago the January 2011 $34/46 risk reversal was purchase for a net debit of $0.16. The calls were bought and the puts were sold. This trade is also known as a synthetic long position as it has similar risk characteristics to being long shares. Baker Hughes Incorporated is engaged in the oilfield services industry. The company is a supplier of wellbore related products and technology services and systems and provides products and services for drilling, formation evaluation, completion and production, and reservoir technology and consulting to the worldwide oil and natural gas industry. It operates in 90 countries. For more great research like this, as well as how to play it through options…please visit Benzinga's Options & Volatility Edge and Benzinga's Cash Generator.