Trader looks for sharp move in Total

Energy producer Total slipped from 10-month highes yesterday, and one trader is looking for a sharp move in either direction.

More than 5,000 January 45 puts traded yesterday, led by a print of 4,450 that was bought for the ask price of $1.70, according to optionMONSTER's Depth Charge system. The volume was well above the strike's open interest of 1,145 contracts at the beginning of the day, indicating fresh activity.

Seconds after those puts traded, a block of 105,000 TOT shares was bought for $54.10. The combination of stock and options creates a delta-neutral strategy that is long volatility , meaning that the trader is looking for a big move higher or lower. (See our Education section)

TOT fell 0.71 percent to $54.29 yesterday. The France-based oil and gas company climbed to $55.35 the day before, its highest price since March 2012.

More than 7,100 options traded overall in the name yesterday, compared to daily average of 1,500.

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