-=Nabors Industries (NBR) proposes reverse stock split

• Nabors Industries proposes reverse stock split with ratio between 1-for-15 and 1-for-50 common shares; expected to become effective on April 16 (shareholders vote April 13)

Options trade: Nabors Industries (NBR) covered call

Selling the June $12.00 call while at the same time buying NBR stock for $11.51 will produce a new covered call with a target return of 20.7 %. Based on recent data, this trade will cost about $9.94, which is also the covered call’s breakeven point. At that price, this covered call has 13.6 % downside protection, while seeking an assigned return of 20.7 % return in 137 days. If NBR is higher than $12.00 on 6/19/2015, we are assured that simple return.

Great trade : Nabors Industries (NBR) +25% (2/14)

** daily **