PBR is a Brazilian oil company with its hands in every part of the industry. They drill, transport, refine, export, import and everything in between.
Now here's the tricky part. Unlike a large oil conglomerate 50% of their shares are owned by the government of Brasil. The stock took a 20% hit today (22 FEB) after the President of Brasil decided to fire the current CEO during a dispute over their heating fuel pricing. The firing caused several raters to downgrade PBR. That's the downside.
Upside is that everything is on sale. This is Brasil's largest oil company and unlike diamonds, oil isn't forever so demand remains stable.
As of posting stock price is 8.01 and the $8 options expiring Friday (29FEB) are .37 and the 8's for next Friday (05MAR) are .5. Last week the stock was trading between $10 and $11 and the $10 options are going for a nickel. There's no reason, if you're an equity investor, that the price shouldn't recover. Long term hold, long term options are an almost sure bet. If you like things a little riskier those ITM options are undefeated. The company just took the hardest hit it can possibly take by surprise.
Don't let Tophat Season pass you by.