Put Spread on DO on 11/4/2013

Diamond Offshore Drilling (DO) operates as an offshore oil and gas drilling contractor worldwide.

It provides offshore drilling services in both the floater market, such as ultra-deepwater, deepwater, and mid-water; and in the non-floater and jack-up markets. The company operates a fleet of 44 offshore drilling rigs, consisting of 32 semisubmersibles, 7 jack-ups, and 5 dynamically positioned drillships, of which 4 are under construction. It serves independent oil and gas companies, and government-owned oil companies.

Diamond Offshore Drilling, Inc. is a subsidiary of Loews Corporation.

The company is scheduled to sell $1 billion worth of debt today. The CEO is retiring after 30 years. As a result, shares have fallen to a yearly low after breaking through a support level. We expect lower share prices for DO.

52-Week Trading Range: $60.06 -$76.86

Last Trade: $60.30

Trade Buy 1 December $60.25 Put at $1.90 Sell 1 December $57.75 Put at $0.95 For a net debit of $0.95 Profit/Loss Analysis Breakeven at $59.30 Maximum profit is $155.00 at strike of $57.00 Maximum loss is ($95.00) at strike of $61.00 Closing Summary Sold 1 December $60.25 Put at $1.80 Bought 1 December $57.75 Put at $0.70

Position closed on 11/25/2013 at price of $1.10 with a 15.79% gain in 21 days.

Updates

11/25/2013 1:06:06 PM

We are taking profits on DO trade.

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