This offshore oil driller is getting dragged down with some of the others in the group. It has one of the newest fleets and might surprise with its earnings over the next 6-12 months. The January 2016 $40 calls are selling for only $6.50-6.70, so if the stock gets to just $50 sometime in the next 16 months, those options will be priced at $10, giving the call buyer a 50% gain. And $50 might be conservative; the company's takeout value is probably north of $60, which would theoretically give the January 2016 $40 calls a price of $20+.
This post was edited on 9/18 12:40 PM by njfan47
This post was edited on 9/18 12:40 PM by njfan47
