A Quick RIG Play

Buy RIG November 70 Calls

By Bryan Bottarelli
Wednesday, October 04, 2006 2:43 PM EST
Wed, 4 Oct 2006 19:43:00 GMT

Dear Bottarelli Research Member,

Let’s make a quick trade on Transocean (RIG – NYSE).

With the Dow now 96-points higher, we have two things happening. First, all of the oil stocks have probed lower throughout the day — and have since bounced off those lows and are now trading higher. Second, oil prices have subsequently turned from negative to positive intra-day, which is giving the entire sector a boost. With these two tailwinds at our backs, let’s enter a speculative, shorter-term play on RIG.

RIG

PLAY: Buy the RIG November 70 Calls (RIG KN) at or under $3.60, good for the day. Current bid/ask spread is $3.20 to $3.40. Place a protective stop loss at $2.40.

Lock and load

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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