Call Options on DO on 7/24/2023

Diamond Offshore Drilling, Inc. (DO) provides contract drilling services to the energy industry worldwide. 

As of December 31, 2022, the company operated a fleet of 14 offshore drilling rigs, including four drillships, eight semisubmersible rigs, and two managed rigs.

It serves independent oil and gas companies, and government-owned oil companies. 

Shares have formed a bullish "cup and handle" following its latest earnings report. On May 8th, DO reported earnings of $0.07 per share on revenue of $232.02 million. Revenue grew 24.58% on a year-over-year basis. Higher share prices are expected. 

Entry Point: $15.35

Trading Range: $5.40 - $16.52

Trade Buy 1 August $15.00 Call at $1.10 For a net debit of $1.10 Profit/Loss Analysis Breakeven at $16.10 Maximum profit is unbounded Maximum loss is ($110.00) at strike of $15.00 Closing Summary Sold 1 August $15.00 Call at $1.20

Position closed on 8/21/2023 at price of $1.20 with a 9.09% gain in 28 days.

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