BP

I have been following the market news relating to BP and there are some interesting articles. Here are some highlights

http://online.wsj.com/article/BT-CO-20100629-710720.html

This talks about the downgrading of the debt rating for BP. it also mentions that the basis points for the CDSs of BP were trading at 575 basis points, far higher than any other publicly traded oil company.

http://af.reuters.com/article/energyOilNews/idAFLDE65K1BO20100629?pageNumber=1&virtualBrandChannel=0

Talks about the liquidity problem of BP and how they may be planning on funding the clean up. It talks about the volatility in the bond market.

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Interesting articles Keith. Not sure if anyone watches Fast Money, but they always have a small options segment. The video in this article shows how they are using options amid turmoil and uncertainity with increased volitility to hedge their stock purchases. However, I am not sure how much I agree with the strategy. They are buying HAL stock long and selling out of the money July puts. If the stock goes down heavily, you would get killed on both ends. (The article/video is from May 24th....shortly after HAL did drop more and he was down on his stock purchase and his JUL 25 put sells were in the money...recently HAL has come back up and he is most likely around even on the trade.) Thoughts?

http://www.cnbc.com/id/37321995/Options_Action_Energy_Sector

-Mike Pohlman

http://www.cnbc.com/id/37321995/Options_Action_Energy_Sector