SDRL Put Play
I have been backing SDRL for awhile now. I even made it my DIVIDEND pick in Harry's DIVIDEND CONTEST (which didn't require picking dividend paying stocks ;p). They just posted a really solid earnings report, one which many were expecting to be weak. Going forward, however, even greater growth is projected. They have a $19 Billion (with a B) backlog of new rigs all under contract to lease. They have upped their dividend to .91.
As these new build rigs come online they will be immediately accretive to earnings and hence to increasing distributions.
One thing I love doing is selling puts as a way of making extra cash or buying a stock I like at a discount. I had sold 15 Jan 2015 $38 SDRL puts awhile ago for an average price of $9. They currently sell for $3. I could close them but I don't expect SDRL to be trading at $38, absent a black swan event.
I am now eyeing the Jan 2015 $50 puts. You can get $10.20 now for each. The stock is currently selling at $46.09, which means you could be forced to net pay $39.80 from now until expiration. Personally I expect the stock to be selling in the 60s by then since more rigs will be online and adding to income.
Of course no guarantee, but something for others to consider.