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Harrah's has been on a roll since August and has recently set a new high at just over $67. We saw a pullback last week to $64.50 but it is still well above support at the 50 day average at $63.

HET operates hotel casinos in Reno, Lake Tahoe, Las Vegas and Laughlin, Nevada and Atlantic City, New Jersey. The company also operates riverboat, dockside and Indian reservation casinos. Harrah's Entertainment, owns or manages 28 casinos in the United States, primarily under the Harrah's and Horseshoe brand names.
http://www.harrahs.com

Caesars Entertainment, (CZR) is an international gaming company which owns, operates or manages 27 casino properties in the United States, Australia, Uruguay, Canada, South Africa and at sea.

HET has agreed to pay $9.4 billion for Caesars and will be the largest casino company in the world when complete.

2006 $65 LEAP Call WBI-AM $7.00

Insurance Put
Feb-2005 $60 Put HET-NL $5.30

Insurance Put - added Jan-23rd
Feb $25 Put ELN-NE currently 90 cents.

Stop Loss ELN $23.00

With the addition of the put I lowered the stop on the LEAP Call to ELN $5.00

Insurance put
April $90 Put IBM-PR $7.50

Put Insurance
Feb-05 $55 Put AEQ-NK $12.40

Insurance put
Buy Feb-$70 Put RUP-NN currently $3.50.

Entry $74.30 (01/09)

RIMM Chart

 

PLAY: XMSR - XM Satellite $34.08 ** Stop $32.00 **

XMSR is holding its ground at $34 and resisting the selling. I am very happy with the way XMSR is performing. We had a great entry and we are holding at that entry. The 100 day average is $33.50.

As the radio wars progress it is SIRI that is announcing some new effort almost daily and spending itself into a hole. XMSR has three times the subscribers as SIRI and SIRI's market cap is $2.5 billion more than XMSR.

There are a lot of differing views on this battle but I am sticking on the biggest of the two. I believe SIRI is overbought and XMSR is oversold. As long as XMSR continues to put the subscribers in the seats
it will win in the end. XMSR is the only one with a satellite portable iPod like device. At $349 it offers the capability of all the channels plus a recording capability of five hours of streaming content when
you can't listen live.

Jan-06 $35 LEAP Call YLX-AG currently $6.20

Insurance Put
Buy Feb-$32.50 Put QSY-NZ currently $1.75

Stop loss $32

Entry $34.09 (01/09)

XMSR Chart

 

PLAY: SYMC $23.38 Symantec - Veritas ** no stop **

SYMC had rebounded to $25.25 by Wednesday but caved in on the weak markets on Thr/Fri to lose about a buck for the week. We have a good position here with support at $23 and an April $22.50 insurance put. Very little risk and plenty of potential.

I believe that the SYMC/VRTS merger is a match made in heaven and analysts will come to that view as more plans are announced. The companies have no overlapping products but all their products are perfect fits for the others. With one company having anti-virus, data security, backup, recovery and storage management it puts the other stand alone companies in a very difficult position. EMC and QLGC both fell in the storage sector and Mcafee got crushed in the ant-virus sector.

There is no stop on this position. With the 2007 LEAP Call any minor dips will not result in a material drop in the leap. The April $22.50 insurance put will protect us from any potential disaster. For me this is a buy and forget play.

2007 $25 LEAP Call OBL-AE $1.15

Entry $25.37 (12/19)

SYMC Chart

 

PLAY: XLE - S&P Energy SPDR $36.41 ** No Stop **

The XLE continues to outperform the market and is holding near the $37 resistance. We have very little risk here and strong rising support. I do expect oil prices to come down after the Iraq elections so snug up your stop next week to a decent level and we will take profits if oil drops.

I do not want to exit before the elections because anything is possible. There could be a disaster that impacts oil for a long time.

This is a long-term play and we could see some volatility but we have an insurance put to protect us.

The XLE SPDR is composed of 27 energy stocks and represents about 8% of the SPX. This is the 8% that helped push the SPX to the current levels with the rise in oil over the last year. In fact the XLE has far exceeded the SPX in performance over the past year.

I am not putting a stop loss on this play. I am suggesting an insurance put to offset against any material drop. Because I believe oil is in a long term up trend I do not want to get jerked out of this position. If we see that oil is not moving higher by March I will reevaluate the position.

2006 $35 LEAP Call WHA-AI $2.65
Drop insurance: March $34 Put XLE-OH $2.45
2007 $40.00 LEAP Call VXM-AH $1.50

Entry $36.67 (12/12)

MRO Chart

 

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