Yesterday I bought two Nov $57 calls for $1.15. Today I sold two Nov $56 puts for $1.10, completing the synthetic long. SH is the ProShares Short S&P fund, so my calls will increase in value if the S&P drops, and decrease if it rises. This is strictly a short-term hedge.
Today I put 3% of my portfolio into Transocean (RIG) at $85. RIG reported lower revenues and earnings before the market open. I still like the company's position and balance sheet, so I bought it on the dip.
I also like ATW, a smaller company in the same business. I may put another 2% into that company (it reports on Nov 23rd) or buy more RIG, or put that in NE (Noble). There are many great companies in this segment, and they're at great prices right now.
