ABAN OFFSHORE: CALL - NONE, PUT - NOT AVAILABLE
SHOULD I BUY ABAN OFFSHORE
Current Price: 735 on December 2
Option: 800 December call available at 12
The stock has 1/6th average volumes (around 125,000 compared to a 3 month average of 800,000). It has very strong immediate resistance at 800 and then at 850. Buying this option would mean you expect the stock to go to 812. The odds are bleak
Option:
The stock has a potential to go to 660 (if fell straight from 800 to 660). So if you buy a Put (its a bet that the stock can experience deep falls). No use buying a 760 put or a 740 put...they are neither here or there. A good way to play this would be a 680 Put or a 700 Put (and they will be cheap). But none is available
SO WHILE PUT IS THE RIGHT THING TO DO, NONE IS AVAILABLE IN THE RANGE THAT YOU NEED...LET IT BE
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