Saturday, June 12, 2010

BP’s (NYSE:BP) Debt Insurance Better

BP (NYSE:BP) caught a break on its debt on Friday, as cost for insuring their debt dropped to about 390 basis points early in the day, a big difference from surpassing 500 on Thursday.

Share price of BP rose for the second day in a row, finishing the week at $33.97 in New York, after plummeting on Wednesday.

That didn't stop traders from making heavy bets in the options market though, which was still on fire on Friday.

Trading volume was far beyond the 3-month average of 34,354.200, surging to 132,861,873 shares.

Many think BP is going to cave, possibly as early as Monday, in announcing they're going to either temporarily eliminate or cut their dividend.

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