June 23, 2010 –
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RELATED TICKERS: RIG
I previously mused about selling put options on Transocean (RIG). Upon further consideration, the downside risk to the shares is rather higher than I would prefer. However, buying calls is a potential strategy. The risks are different - in buying a call, you pay a premium which is then a sunk cost. You do not own the shares if the stock price declines below the strike. Furthermore, I prefer to go with longer dated calls to give an investment thesis greater time to play out - and even then, an idea may not play out within two years. On the other hand, your downside liability is capped at the price you paid for your option. [more]
June 19, 2010 –
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RELATED TICKERS: RIG
Transocean (RIG) leases and operates drilling rigs to oil companies. They have the largest fleet in the world - and it so happens that the disaster occurred on a Transocean rig. [more]
June 01, 2010 –
Whatever you think of the BP disaster - Gov. Barbour (R-MS) thinks this is no big deal and wants to drill, baby, drill whereas I think that BP America should be placed into temporary receivership - we can all agree that the disaster will have major impacts on energy stocks. [more]
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