Barclays equity derivatives strategists back buying "put" options - used tobet on a share price falling - on oil major BP.
The Barclays derivatives team writes in a research note that BP's shares -which are up by 0.1 percent on Wednesday briefly hitting a 52-week high of 510pence - could be set to retreat from those peaks, with the British oil companyslowly recovering from a major U.S. oil spill debacle in 2010.
"BP has rallied close to 8 percent, leaving the stock at its one-year high.This level has only been reached twice since the oil spill accident in 2010,"writes the Barclays team.
"We recommend investors to lock in recent gains by buying a 'put'," theyadd.
Barclays backs buying a "put" on BP due to expire in March with a strikeprice of 500 pence - implying the stock could fall some 2 percent by March - for525 pence.
Earlier this month, BP vowed to return more cash to shareholders and deepenits ties with Russia's Rosneft, trailing what investors should expectfrom a strategy update next month.
However, BP remains in the shadow of litigation related to the 2010 oilspill in the Gulf of Mexico. The company said provisions to cover the spill'sclean-up, fines, compensation and legal costs had risen to $42.7 billion from$42.5 billion last year.
Reuters messaging rm://sudip.kargupta.thomsonreuters.com@reuters.net
BP (BP.)