Re: [TheOptionClub.com] RIG Trade

 

I think you are right the gain is like 700 percent play it safe there is always another trade.

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From: "chickbull" <rdconsulter@gmail.com>

Date: Sat, 22 May 2010 14:00:35 -0000

To: <OptionClub@yahoogroups.com>

Subject: [TheOptionClub.com] RIG Trade

 

New to this board and I have only traded covered calls and protective puts on ocassion. You would consider me a beginner although age 76 retired and in the market over 45 years. My accounts are at schwab and have Level 1 option trading. I'm sure I can learn something from you all and hopefully give something back. Here's a trade I'd appreciate any comments on.

I have owned in my IRA, Transocean -RIG for several years and before that Global Marine for many years, which merged with RIG and how I ended up with RIG. Of course, everybody knows RIG now with the mess created in GOM.

I bought 2 june 75 put contracts on my long RIG 200 shares. The puts are worth $15.95 each now. The stock is at $59.24. I bought the puts at 2.60. So my choices are:

1. Hold till expiration and excercise for $75 at expiration.
2. Sell only the stock now and continue to hold puts for futher appreciation or depeciation.
3. Sell only the puts now and hold the stock.
4. Sell both stock and puts now.

With so much volatility and uncertsinty and having a more conservative approach, I'm inclined to do #4 and take the $75 now.

What do you all think?
Regards,

Ron

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