Bear Call Spreads

GSF – GlobalSantaFe CorpGlobalSantaFe Corporation, through its subsidiaries, operates as an offshore oil and gas drilling contractor worldwide. It provides offshore oil and gas contract drilling services to the oil and gas industry on a daily rate basis.

Sell Feb 60 call at 0.80
Buy Feb 65 call at 0.35
Return 0.45
9.89%

Technicals: The stock peaked in April at a 52-week high of $65.21 and then prices promptly fell to a 52-week low of $44.26 set in October. After the low point, prices turned around and traded up to but fell short of resistance at the $65 level. Once the stock failed to make a new high prices quickly slipped below the support area of the 30-dma and continue to trade lower on increasingly strong volume. The stock trades in the energy/oil well services & equipment industry which continues to pullback from an area of overhead resistance. Currently the MACD’s are yielding a sell signal while the Stochastics are showing a flat reading.