basically unhedged and ready.., page-4

I cannot understand why a co. which is to be largely unhedged since June 30 have decided to involve themselves with options.Buying put options is a cost[little different from hedging]and will only seem wise if the oil price drops.On the other hand if the oil price spikes higher and goes above the call price of the call options they are selling the put options will expire worthless and they will have to pay out on call options. Much better to keep it simple imo.