DO Finding Support at $100

Add More Calls Now

By Bryan Bottarelli
Thursday, August 02, 2007 12:14 PM EDT
Thu, 2 Aug 2007 16:14:00 GMT

Dear Bottarelli Research Member,

I think it’s a smart idea to add to our position in Diamond Offshore Drilling (DO – NYSE). As you can see by the chart, the stock is making an attempt to call the 50-day moving average a support level right at $100.00 per share. This $100 level is a far cry from the 52-week high that DO set on July 23rd at $114.72, so it looks like the selling pressure could be coming to an end.

DO

Don’t forget, DO just reported blockbuster earnings — which happened to come out on a major market down day. Therefore, I don’t think their recent blockbuster quarter has been fully priced into the shares. As a result, the DO August 105 Calls (DO HA) that we entered on July 31st for $3.60 look like a bargain here at $2.65, so let’s add to this position now!

PLAY: Buy more DO August 105 Calls (DO HA) at or under $2.70, good for the day. Lower your protective stop limit to $1.75.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

© 2012 CSR Group, LLC. All rights reserved. Published in USA.

Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.

Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.

CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.

Bottarelli Research alerts contain time-sensitive information, and are published and distributed to members with urgency. Because of this, not all published materials can be adequately proofread, and an occasional spelling or grammar error may exist.


Other Options Alerts From August 2007