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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (111966)	10/16/2008 2:00:13 AM
From: Q8	Respond to of 206184

Energyplay.. you are welcome.. which two do you have in mind.. promise I will do my own DD!!! Enjoy! OPTIONS OCTOBER 16, 2008 Energy Trades Reflect Divide By TENNILLE TRACY Energy companies dominated activity in the options market, as the price of crude oil settled at a 13-month low. With the energy sector suffering heavy declines, some traders took the opportunity to speculate on future moves, while others were forced to adjust or unwind from positions they held. Among the most active names on the day was Pride International Inc. Trading in the Houston driller rose to five times the normal level, according to Trade Alert, as investors picked up 27,000 calls, which let them buy the company's stock, and 2,000 puts, which let them sell it. While the ratio of calls to puts would typically signal bullishness, several traders appeared to be selling, not buying, the call contracts. Investors seemed eager to unwind out of Pride's January $35 calls, which will expire worthless unless the share price more than doubles before Jan. 16. And with the way Pride shares traded Wednesday -- closing at $15.47, down 25% -- such a sizable move to the upside might have looked unlikely. Fueling at least some of the activity in Pride options was a research note from J.P. Morgan Chase singling out Pride as one of two drilling companies with the "smallest near-term and mid-term liquidity cushion." Options traders also focused attention on oil-field servicer Weatherford International Ltd. They took stakes that were neither bearish nor bullish, but aimed to take advantage of high volatility by selling options and collecting juicy premiums. ne large trader showed up to sell "straddles" in Weatherford's longer-dated May contracts -- selling May $15 calls and May $15 puts. The trader collected $7.90 on the transaction and will make money as long as Weatherford trades within a rather wide range, below $22.90 and above $7.10. Weatherford closed the session at $13.48, down 19%.