Dive Back into Oil

DO Set to Push to $86

By Bryan Bottarelli
Friday, December 08, 2006 11:41 AM EST
Fri, 8 Dec 2006 16:41:00 GMT

Dear Bottarelli Research Member,

Similar to the 36% gains we just make on our RIG December 80 Calls (RIG LP), we have a very similar situation today in Diamond Offshore Drilling (DO – NYSE). As you can see by the chart, DO has been in a very established up-trend which looks capable of extending all the way up to DO’s recent high at $86.00 a share. That’s $4.00 above current levels, so let’s get posited in a quick upside play for January.

DO

PLAY: Buy the DO January 80 Calls (DO AP) at or under $5.70, good for the day. Current bid/ask spread is $5.40 to $5.50. Place a protective stop loss at $3.90.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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