XLE $75.79 Energy Spyder *** PUT ***
We were not triggered on the XLE put with our trigger at $71.35 untouched. I raised the trigger and the strike. I believe we are going to get a great entry here.
Breakdown Trigger: $74.75
Buy: Dec $73 Put XBT-XU, stop at $76.50 after entry
This is one entry I may be sorry I took. I love McDermott and it is not really tied to the price of oil. They are a manufacturer of oil field infrastructure and drilling platforms. They also are active in nuclear plant manufacture and operation. As long as oil does not really implode MDR should be fine with a minor pullback. There is strong support at $48-49 so we will tough it out on any decline.
Insurance put: Buy the NOV $50 Put MDR-WJ on MDR at $52.25
McDermott International, Inc. (MII) is an engineering and construction company with specialty manufacturing and service capabilities. MII is the parent company of the McDermott group of companies, which includes J. Ray McDermott, S.A. (JRMSA) and its consolidated subsidiaries; McDermott Holdings, Inc. (MHI) and its consolidated subsidiaries; McDermott Incorporated (MI), a subsidiary of MHI, and its consolidated subsidiaries; The Babcock & Wilcox Companies (B&WC), a subsidiary of MI; BWX Technologies, Inc. (BWXT), a subsidiary of B&WC, and its consolidated subsidiaries, and The Babcock & Wilcox Company (B&W), a subsidiary of B&WC, and its consolidated subsidiaries. MII is a worldwide energy services company operating in three business segments: Offshore Oil and Gas Construction, Government Operations and Power Generation Systems. In July 2007, JRMSA acquired Secunda International Limited.
Breakout trigger: $53, hit 9/20
Position: 2009 $60 LEAP Call OYZ-AL @ $9.00