$RIG has been in a death spiral since hitting record highs in 2008 and sits at almost 10 year lows. Much of the recent weakness can be attributed to the stronger US Dollar and lower oil prices. While it's stock price has been dying, the dividend yield has been rising.
$RIG offers an almost 10% yield. In a world where negative interest rates are a reality, $RIG offers the chance at a substantial return just via the dividend payment.... assuming that dividend remains intact.
Barrons wrote a piece just a month ago stating they felt the dividend was safe. Another positive comes from Carl Icahn's firm owning 6% of the company.
There is no telling for sure where the selling in $RIG shares will stop, but if the dividend is safe I think shares could see a significant rally from this $30 level.
No I don't think Rigamortis is setting in, on the contrary I think the stock will come alive to break the $40 price again. I own the calls, and will remain a buyer below the $40 level.
I see the risk for further downside as minimal compared to the potential for upside.
$RIG $30.50 calls at $.45