Bought NOV May 85 Calls

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April 26, 2007

I picked up some NOV May 85 Calls. I remembered that Cramer mentioned on his game plan last week that NOV reports Friday (tomorrow morning) and he thinks this is the best play ahead of earnings. I didn’t buy the calls on that.

Why I Got Interested In NOV

My post last night got me thinking about the drillers. Then I saw KOG spike today. My recent HERO pick is up over 9% in 3 days. Something is going on with these drillers!

So I started looking for catalysts and other drillers that are not overpriced (pretty much all are undervalued). I started with the list of Drillers I posted last night. HERO, RDC, ESV, BRNC, etc. I looked at buying ESV calls, but the stock doesn’t move that much so I thought as an overnight play it might not be best. However, ESV is in a cup and handle formation right now and intermediate term looks great.

Another item I was contemplating is the overbought market. Oil drillers can move with or counter trend the general market. So if the market gives back, the oil plays can still move up.

RDC looks OB on a daily basis and there isn’t a ton of volume on their options. Although I would like to own it straight up.

HERO also looks OB on a daily basis and their option volume is weaker than NOV.

Earnings are catalyst and NOV has that tomorrow morning. Hopefully they will put out a good number and the calls will make some money overnight.


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  • http://promethyl.org/stocks/ Promethyl

    NOV seems to be on a tear. Since I noticed it it’s up 14. I wonder if I should buy it too. I noticed it’s EMA 85 is above it’s 325. Looks profitable.

  • http://promethyl.org/stocks/ Promethyl

    NOV seems to be on a tear. Since I noticed it it’s up 14. I wonder if I should buy it too. I noticed it’s EMA 85 is above it’s 325. Looks profitable.

  • http://promethyl.org/stocks/ Promethyl

    Would you consider writing an article on calls and puts and how they work? I’m not familiar with options and am terrified to use them, but using your NOV option call purchase as a guide, I think it’d limit your loss should poor news abound on the stockholder’s meeting.

  • http://promethyl.org/stocks/ Promethyl

    Would you consider writing an article on calls and puts and how they work? I’m not familiar with options and am terrified to use them, but using your NOV option call purchase as a guide, I think it’d limit your loss should poor news abound on the stockholder’s meeting.

  • http://promethyl.org/stocks/ Promethyl

    Good call dude.

    UPDATE 1-National Oilwell Varco profit more than doubles
    Reuters – 26 minutes ago

  • http://promethyl.org/stocks/ Promethyl

    Good call dude.

    UPDATE 1-National Oilwell Varco profit more than doubles
    Reuters – 26 minutes ago

  • http://www.stockrake.com Sensei

    The in ITM May 85 calls are up alot now. More than where I sold. DOH!

  • http://www.stockrake.com Sensei

    The in ITM May 85 calls are up alot now. More than where I sold. DOH!

  • http://promethyl.org/stocks/ Promethyl

    Yeah, I think the right thing in light of all the good news (doubled earnings!) would be to let them run until 3PM. Still, something is better than nothing.

  • http://promethyl.org/stocks/ Promethyl

    Yeah, I think the right thing in light of all the good news (doubled earnings!) would be to let them run until 3PM. Still, something is better than nothing.