If your broker allows verticals, Id look at those as well I.L.O covered calls.
Long term, I am not sure, but probably disagree with you on a bright future for any driller.
Likely to be like the airlines now. Of course traders have been buying airlines because they thought they were cheap for 10 years. It never ends.
I mean Im not even sure they can stop this leak, ever, till the pressure weakens in a number of years. And what if another one breaks, and yet another? Do you think here will be any drillers left at all if that happens?
Very little seafood left to eat, while populations continue to grow, and other food resources are transferred to growing energy sources?
I dont think this is small correction, I think major problems exist in deep drilling.
But if you want to day or swing trade this in your IRA, Im sure there will be some rallies.
Ross
--- On Mon, 6/14/10, chickbull <rdconsulter@gmail.com> wrote:
From: chickbull <rdconsulter@gmail.com>
Subject: Re: [TheOptionClub.com] A decision what to do with RIG?
To: OptionClub@yahoogroups.com
Date: Monday, June 14, 2010, 2:00 PM
I think RIG does have a good future for higher prices but it could be at least 1-2 years to reach $70's. I could exercise at 55 and move on or hang on and sell covered calls, but even jan70 in 2011 are only 1.75 or do aug 55 2.50 or nov 55 4.70 and go from there. Use a stop loss of 42. Just thinking out loud. --- In OptionClub@yahoogroups.com, rvd <rvdidit@...> wrote: > > well I sold my RIG in IRA cause the options commishns are $10 min. > So I would first say, exercise if your commish's are cheap for exercise. > Other than that it depends what you have time for? Do yu want to trade those options? > I dont expect it to be a stellar stock next month, or for a while after. > Why not just check the chart every month and news and buy it back when it > seems to have a bright future again, if ever. > However that could make good return selling calls with the dividend. > > I have 200 shares RIG in an IRA and 2 june 55 put contracts with expiration this friday. So I can exercise the puts and sell RIG. Or I can keep my RIG and sell the puts at about $10. or the difference between $55 and the stock price, now about $45. Or roll over the 55 june put to another expiration month and/or another strike. Possibly write covered call. Any of your thought would be helpful. > > > > ------------ ------------------------
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