A New Speculative Trade

RIG Looking to Bust Out

By Bryan Bottarelli
Wednesday, December 06, 2006 3:30 PM EST
Wed, 6 Dec 2006 20:30:00 GMT

Dear Bottarelli Research Member,

I have a new speculative trade ready for anyone willing to take on additional risk for increased profit margins. And the trade comes courtesy of my favorite oil service company, Transocean (RIG – NYSE).

As you know, Transocean owns and operates 89 mobile offshore drilling units for oil and gas wells — specializing in deepwater and harsh environment drilling environments. As you can see by the chart, RIG has unsuccessfully attempted to break through the $79 level for the past six trading days — but they’ve finally broken through today. The stock is trading for $80 as I write and looking to make a quick pop even higher, so let’s play some December 80 calls for a quick in-and-out trade.

RIG

PLAY: Buy the RIG December 80 Calls (RIG LP) at or under $1.90, good for the day. Current bid/ask spread is $1.70 to $1.80. Place a protective stop loss at $1.00.

Remember, this will be a quick play that’s only appropriate for anyone willing to speculative on a faster moving trade. If that doesn’t sound like your cup of tea, then I’d recommend waiting for the next trade. Judging from our recent trading activity, you won’t have to wait long at all!

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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