Seadrill Limited is a subaquatic drilling company headquartered in Bermuda and managed from Norway. Seadrill and its subsidiaries have a range of operation that extends from the North Atlantic Basin to the South Pacific. Seadrill is becoming the operator of choice for many of the large oil producing companies, and is continuing to aggressively expand to take advantage of the growing offshore drilling market. This ambition is paying off, for the time being. The company’s stock is considered a risky investment by many analysts because it is, due to extensive leveraging, very vulnerable to changes in the oil market. On the other hand, they have a relatively new (and expanding) stock of rigs and a streamlined business model that is handily outstripping competitors in their field.
My Trade: Buying the SDRL June 41 Calls for $.65
Risk: $65 per 1 lot
Reward: Unlimited
Breakeven: $41.65
Greeks of the Trade:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long