Trading Position Update
As previously mentioned, I started investigating Transocean in 2022 based on my thesis that there is a long-term structural imbalance in oil supply driven by over regulation, a poor energy transition strategy influenced by the Davos elite, and production discipline by oil producers/OPEC versus prior cycles.
In 2022, I have built a sizable position in the business at an average price of $4.46/share based on my research. (see my research post on Transocean)
I have repositioned my investment for a potential breakout this year by adding longer dated out of the money call options at a relatively low premium cost. I laddered the option strike prices to position myself to take some initial capital off the table if the stock has a price run.
Transocean is a very high-risk stock given their past financial performance and high debt leverage. Trading options are very risky.
Comments