Transocean Inc
Option Trade Blog

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Chart 1: Transocean Inc Yearly Chart

Chart 2: Quarterly Chart

Charts courtesy of StockCharts.com

Title: Transocean Inc Option Trade Blog

Blog Date: 1st Apr 06

Business Description: Business Nature - provides offshore contract drilling services for oil and gas wells. It contracts drilling rigs, related equipment, and work crews primarily on a day-rate basis to drill oil and gas wells with a focus on deepwater and harsh environment drilling services. As of March 2, 2006, the company owned and operated 89 mobile offshore and barge drilling units, including 32 High-Specification semi-submersibles and drill-ships, 23 other floaters, 25 jackup rigs and 9 other rigs. Geographical operations: US, UK, Brazil, India, and other countries.

Symbol:   RIG

Option Symbol:   RIGPN

Option Description:   Type: Put,   Expiration: Apr,   Strike Price: 70    

Reason for Initiation:   Up-trending, up by about 70% in 1 year and almost 200% in 2 years.

Action:   Short Put (equivalent to Long Stock)

Details:  Sold to open position on 10th Mar 06, Closed position on 29th Mar 06.

Result:   +ve

Reason for Closing:   Objective met.

Comments:
* Initiation based on price above 45 days moving average (fractal signal a little extended from 28 days moving average so decided not to wait for that or use that).  
* Price moved up steadily, price dip on 20th to 23rd Mar but trailing stop not hit.
* Decided time to close on 29th Mar, not going for the last squeeze.
* Conclusion: Nice.
* Action Plan: Prepare for next good entry opportunity.

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