PDE - Pride International
Pride was on the watch list at $44 and missed being triggered on Friday by 6 cents. I am going to take the entry at Friday's close of $44.93. Zacks reiterated a buy rating on PDE on Friday based on their $9.4 billion backlog and their emergence as a pure play deepwater driller. They have sold off their non-core assets to leverage the deepwater play. The market is still valuing them as a shallow water jackup play and they are no longer in that sector. They are a strong takeover target given their small size and sector.
Buy Jan 2009 $50 Call PDE-AJ currently $3.70
I went with a Jan call instead of a LEAP because an acquisition would limit LEAP appreciation. I wanted to be close to the current price with a cheap option.