NEW DIRECTIONAL CALL PLAYS

Transocean Ltd. - RIG - close: 86.36 change: +1.66 stop: 83.45

Company Description:
Transocean, the world’s largest offshore drilling contractor, provides the most versatile fleet of mobile offshore drilling units to help clients find and develop oil and natural gas reserves. Building on more than 50 years of experience with the highest specification rigs, our 21,000 employees are focused on safety and premier offshore drilling performance. (source: company press release or website)

Why We Like It:
The U.S. dollar appears to be rolling over after forming a top over the last few weeks. Any extended weakness in the dollar should be bullish for oil. We want to play any oil strength with stocks in the oil services sector. RIG is one of the biggest companies in oil services. Shares of RIG have rallied back to recent resistance in the $86-87 zone. I am suggesting a trigger to buy calls at $87.55. If triggered our first target to take profits is at $93.50. Our second and final target is $99.00 but that could take a few weeks.

Trigger to buy calls @ 87.55

Suggested Position: BUY CALL APRIL $90 (RIG 10D90.00) current ask $1.25

Annotated Chart:

Entry on March xxth at $ xx.xx
Earnings Date 05/05/10
Average Daily Volume = 7.0 million
Listed on March 16th, 2010