ESV Oil driller Ensco (ESV) is down 51 cents to $47.52 and options volume is running 6X the average daily after the company announced a restructuring, which includes moving its headquarters from the US to the UK. Jan 40 and 45 puts are the most actives. Some investors might be taking defensive positions due to concerns about the “index effect”. In the past, Standard & Poor’s has ousted companies from the S&P 500 when they redomisticate. For example, in February, S&P announced that, “Weatherford International is redomesticating to Switzerland after the close of trading on Wednesday, February 25, 2009. As a result, Diamond Offshore Drilling (DO) will replace Weatherford International after the market close on that date.”
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.