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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (1811)	8/19/2014 3:34:01 PM
From: Jerome	1 Recommendation Recommended By Kirk © Read Replies (1) \| Respond to of 26766

Unusual and profitable option play. The company NE ...Noble now at 27.84 Buy a September Option on Noble at the 29 strike...buy the adjusted option at 1.75/2.25 per contact After the purchase call your broker and have him exercise the option to purchase the stock. Once the option is exercised you will own 100 shares of Noble and 33 shares of PGN Paragon Offshore. As I read the stuff on Paragon I see that they are planning to pay $83 million dollars in dividends this year which comes to a 10 % yield at the current stock price of $9.27 Now both Paragon (a spin off from Noble, a few weeks back) and Noble are both at the bottom of a trough. The sum of the parts are worth more than the individual pieces. finance.yahoo.com All of my other oil stocks show about the same kind of chart pattern. (ESV, RIG, SDRL, CHK etc.) This kind of trade makes money from the dividend and from the likely stock appreciation. Oil stocks move up and down for no significant reason...and have a beta of 2 to 3. I already did this trade and I may try it again.....I believe my math is correct....and I'm open to criticism if I'm wrong.