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RIMM - $200 - Research in Motion

No we were not triggered on Friday. Our entry came on Monday when RIMM fell to $168. The Friday spike was an outstanding development and I am sure nobody is complaining. We are showing a $14 profit on the call spread but once the spike cools the premium will decay on that $230 call and our profit will increase. The long $180 call is now $20 in the money and the premium should not decay significantly unless RIMM dives.

RIMM posted a +73% spike in revenues and 1.2 million new subscribers for the quarter. You may have noticed that AT&T has been running a Blackberry Curve ad behind almost every iPhone ad that Apple was running. This smart marketing by RIMM/AT&T produced a huge wave of new buyers from those who did not want to wait for an expensive and unproven iPhone.

Company info:

Research In Motion Limited (RIM) is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support wireless network standards, the Company provides platforms and solutions for seamless access to time-sensitive information, including e-mail, phone, short message service (SMS), Internet and intranet-based applications. RIM technology also enables an array of third-party developers and manufacturers to enhance their products and services with wireless connectivity to data. RIM's primary revenue stream is generated by the BlackBerry wireless solution, comprised of wireless devices, software and service. Other revenue includes accessories, non-warranty repairs, and non-recurring engineering development contracts (NRE).

Breakdown trigger: $168.00 hit 6/25

Call spread:
Position: LONG 2009 $180 LEAP Call VHO-AP @ $32.60
Position: SHORT 2009 $230 LEAP Call VHO-AF @ $10.47


NOV - $104.70 - National Oilwell *** Stop Loss $97.50 ***

National has been on a very strong ramp higher for five months. I have wanted to buy it on a pullback but missed the April dip. Wednesday's dip to our trigger point at $100, over -$8 off the prior Friday high, gave us a perfect entry if NOV is going to continue its move higher. It also gives us a clear exit point if that move fails.

The symbol was listed incorrectly last Sunday and I sent an email to subscribers when the trigger was hit informing of the correct symbol.

Company Info:

National Oilwell Varco, Inc. (NOV) is a worldwide provider of equipment and components used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry. The Company operates in three segments: Rig Technology, Petroleum Services & Supplies, and Distribution Services. The Rig Technology segment designs, manufactures, sells and services complete systems for the drilling, completion and servicing of oil and gas wells. The Petroleum Services & Supplies segment provides a variety of consumable goods and services used to drill, complete, remediate and workover oil and gas wells, service pipelines, flowlines and other oilfield tubular goods. The Distribution Services segment provides maintenance, repair and operating supplies, and spare parts. In March 2006, NOV acquired Soil Recovery A/S. In November 2006, it acquired Rolligon Ltd. In December 2006, it acquired 87% of NQL Energy Services Inc.

Breakdown trigger: $100 hit 6/27
(no leaps)

Position: Feb 2008 $110 Call NOV-BB @ $10.50

National Oilwell Entry


GSF - $72.11 - GlobalSantaFe *** Stop Loss $66 ***

GSF dipped to support at $70 and triggered our entry on Wednesday before rebounding very close to a historic high on Thursday. GSF is a driller like RIG and DO and may be a little more volatile but has a very nice trend.

Company Info:

GlobalSantaFe Corporation is an offshore oil and gas drilling contractor, owning or operating a fleet of 59 marine drilling rigs. During the year ended December 31, 206, it commenced construction of an additional semisubmersible. The Company also has a jackup rig, the GSF High Island III. GlobalSantaFe Corporation provides offshore oil and gas contract drilling services to the oil and gas industry worldwide on a daily rate (dayrate) basis. The Company also provides oil and gas drilling management services on either a dayrate or completed-project, fixed-price (turnkey) basis, as well as drilling engineering and drilling project management services, and it participate in oil and gas exploration and production activities.

Breakdown target: $70 Hit 6/27

Position: 2010 $80 LEAP Call WEJ-AP @ $10.10


CNQ ended a weeklong bout of selling with the Thursday dip and a +$4 rebound. We need this rebound to continue. It has no risk to offshore or overseas events.

Company Info:

Canadian Natural Resources Limited (CNRL) is an independent crude oil and natural gas exploration, development and production company head-quartered in Calgary, Alberta, Canada. The Company's operations are focused in North America, largely in Western Canada, the United Kingdom portion of the North Sea and Offshore West Africa. In November 2006, the Company completed the acquisition of Anadarko Canada Corporation from Anadarko Petroleum Corporation. The Company's crude oil and natural gas activities are conducted in three geographic segments: North America, North Sea and Offshore West Africa. These activities relate to the exploration, development, production and marketing of crude oil, natural gas liquids and natural gas. The Company's Horizon Project has been classified as a separate segment. Midstream activities include the Company's pipeline operations and an electricity co-generation system.

Breakdown target: $65 Hit 6/25

Position: Jan 2009 $70 LEAP Call OKR-AN @ $9.50


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