Potential 'Rip' Today in Transocean (RIG), Trader has Eye on May $57.50 Calls

Alex Kosoglyadov, vice-president in the BMO Capital Markets trading group, is recommending investors buy May $57.50 calls on Transocean (NYSE: RIG) heading into today's annual meeting. He views the trade as a "cheap bet on potential upside."

Kosoglyadov thinks Transocean will win the battle vs activist Carl Icahn who wants a $4 dividend vs Transocean's plan for a dividend of $2.24, but if Icahn wins shares could "rip".

BMO Capital has a Outperform rating on Transocean with a price target of $62.00.

For an analyst ratings summary and ratings history on Transocean (NYSE: RIG) click here. For more ratings news on Transocean click here.

Shares of Transocean closed at $54.73 yesterday.

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