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What's Up With Transocean's Stock Options? | PowerOptions Web Log
Transocean Option Volume Transocean’s (RIG) stock option volume was off-the-chart yesterday. Transocean is in the offshore oil and gas service business. Transocean operates deepwater rigs for drilling oil and gas wells. Transocean is the big dog in its market segment and its competitors include Noble (NE), Diamond Offshore (DO), Nabors International (NBR) and Pride International (PDE). Share Repurchase A majority of yesterday’s stock option volume is most likely related to Transocean’s recent announcement that the company’s board of directors approved a significant stock repurchase and is also seeking to provide a dividend on the order of $3 per share. The dividend will require shareholder approval. Sign up now for PowerOptions 14-day free trial The share repurchase, potential dividend and attractive P/E (Price-to-Earnings) ratio should act to provide support for the company’s stock price. Stock Price Transocean’s stock price has been in a trading range from $80 to $95 over the...