Speculative Options Plays

[CoolHandLucas]

S&P REITERATES BUY OPINION ON SHARES OF DIAMOND OFFSHORE DRILLING
56 minutes ago
DO posts Q1 EPS of $1.64 vs. $1.06, $0.06 below our estimate, but $0.17 above consensus. Results were helped by 40%-50% higher dayrates for DO's fleet of floater rigs, and a more than 30% increase in dayrates for its jackup fleet, despite reduced utilization for the midwater semisubmersibles and jackups. DO also said that it had obtained new five-year commitments for two midwater semisubmersibles in Brazil, and also obtained a six-month commitment for the Ocean Saratoga in the Gulf of Mexico at substantially higher than modeled dayrates. We will update after 10 am call.