Stock Position – Parker Drilling

Parker Drilling (PKD) is one of my covered call positions. I purchased it Mar 22 for $9.65 and sold the May$10 call for $.65. The stock has been steadily rising and closed today at $10.68.

The option premium has gotten pricey with the May $10 contract carrying an IV of 87. The May $12.50 call costs $.45. So the perception is the stock will be moving.

The company has announced an earnings release for May 8. My position in this stock is set, but if someone is looking for a stock on the move, put this on your list to watch.

If it keeps going up I may consider buying a put a few days before the earnings release. It would appear most of the news is preloaded into the stock price.


2 Responses to “Stock Position – Parker Drilling”

  1. T Says:

    This stock has broken many hearts over the years.

    I have been looking at MLPs lately, as well as a few alternative fuel source play. If most are willing believers in global warming, the rest of us may as well make some money on it (like Al Gore).

  2. Tim Says:

    Thanks T, I read your post on MLPs and have added them to my interest list.

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