Diamond Offshore Drilling (DO) NewsBite - DO Tumbles on Slipping Oil Prices

Posted on Wednesday, July 23, 2008 3:22 PM

Diamond Offshore Drilling Inc. (DO) opened at 124.04. So far today, the stock has hit a low of 117.93 and a high of 124.72. DO is now trading at 120.11, down 4.10 (-3.31%). The stock hit its 52 week high of 149.30 in December and set its 52 week low of 86.06 in August. DO has been rising for the past year. Shares of Diamond Offshore Drilling have been tumbling today as crude oil prices dropped near $126 a barrel after the government reported U.S. gasoline supplies rose more than expected as the weak economy puts pressure on demand. Technical indicators for the stock are neutral and slightly improving while S&P gives DO a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider an August bear-call credit spread above the $135 range. DO stock could rise up to 12.4% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]