Thursday, June 17, 2010

Trade

Buy 1% position in BP Jan11 47 calls @ $1.11.


Sentiment is universally negative on BP. I think the 39% chance of bankruptcy priced in by the credit default swap market is ridiculously high.


$47 is the halfway mark between the current price and the yearly high. I think that BP will be able to do some damage control. Anything they are able to do will help their stock price now.

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