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GG $37.60 - Goldcorp ** No Stop **

We had a nice breakout over resistance at $38 last week but the +3 sprint to $41.66 was all erased by the end of week market drop. After the smoke cleared we ended only 50 cents away from where we started. No change in the play.

Geopolitical problems and the sliding dollar are pushing gold higher. I continue to hear prices in the $800 to $1000 range over the next 18 months. Let's hope they are right.

Company Info:

Goldcorp Inc. (Goldcorp) is a North American-based gold producer engaged in exploration, extraction and processing of gold. The Company's primary asset is its Red Lake Mine, a gold mine in Canada. It's other operations include the Bajo de la Alumbrera gold-copper mine (the Alumbrera Mine) in Argentina; a 100% interest in each of the San Dimas gold-silver mine (the San Dimas Mine); the San Martin gold-silver mine (the San Martin Mine); the Nukay gold-silver mine (the Nukay Mine) in Mexico, and a 100% interest in the Peak gold mine (the Peak Mine) in Australia. Goldcorp also has 100% interests in the Los Filos gold development stage project (the Los Filos Project) in Mexico and the Amapari gold project (the Amapari Project) in Brazil. Goldcorp also owns approximately 59% of Silver Wheaton Corp. (Silver Wheaton), a mining company with 100% of its revenue from silver production.

Breakout trigger $36.00 hit on 5/01
Position: 2008 $35 LEAP Call LGX-AG @ $10.00 5/01

Entry $36.00 (5/01)

TS $41.55 - Tenaris ** Stop Loss $40 **

Tenaris is turning into the play from hell. Since the 5:1 split on April 27th we had a nice spike that was immediately erased by a cautionary earnings statement on May 2nd. The support at $43 held until Friday despite any material gains. Friday's drop put us very close to the $40 stop with only thin support at $41 to hold the bears at bay.

I don't see any reason for the weakness other than the problems in Brazil. If Petrobras was building pipelines from Bolivia that may be on hold for now. However, most pipe is contracted months or even years in advance and delivery is not dependent on the success of the project. It is a firm price FOB the point of origin. I am going to ride it and wait for the stop. The dollar difference in the underlying at this point will not be material to the loss in the option.

Comments 5/07

The gap and crap was due to earnings they announced on May 2nd. Profits jumped from $280 million to $441 million for Q1 but Tenaris said additional earnings were held back due to delays in pipeline projects in Brazil and Argentina. Revenue jumped from $1.45 billion to $1.78 billion despite the delays.

Company Info:

Tenaris S.A. is a global manufacturer of seamless steel pipes for the oil and gas industry and a global supplier of seamless steel pipes for process and power plants and for industrial and automotive applications. It is also a regional supplier of welded steel pipes for oil and gas pipelines in South America. Tenaris focus on providing end-user customers a service that integrates manufacturing, procurement, distribution and on-time delivery of products throughout the world. Incorporated in Luxembourg, the Company has manufacturing facilities in Argentina, Brazil, Canada, Italy, Japan, Mexico, Romania and Venezuela. It also has a proprietary global service and distribution network in over 20 countries. Tenaris' customers include many of the world's major oil and gas companies, as well as a large number of engineering and industrial companies.

Breakout trigger $47.00 hit on 5/01
Position: Dec $52 Call TSW-LX @ $6.20 5/01

Entry $47.00 (5/01)

FTO - $60.19 - Frontier Oil Corp

FTO announced earnings on Monday beating the street by +20 cents at $1.02 and rallied to $66 only to give it all back with a -$6 drop on the post Fed profit taking. We are back at $60 without any earnings risk with a 2:1 split in the near future. The trend is still up despite the drop.

The board announced a 2:1 split subject to shareholder approval on June 9th. I have never seen one voted down.

FTO is a strong takeover candidate and should be very profitable since they can refine the cheaper heavy crude.

Stock split: 2:1 scheduled for June 26th

Earnings: May 8th. FTO beat the street by +20 cents at $1.02

Company Info:

Frontier Oil Corporation (Frontier) is an independent energy company engaged in crude oil refining and wholesale marketing of refined petroleum products. The Company operates refineries (the Refineries) located in Cheyenne, Wyoming, and El Dorado, Kansas, with a total annual average crude oil capacity of 162,000 barrels per day (bpd). Both of the Refineries are complex refineries, capable of processing heavier, less expensive types of crude oil, while producing gasoline, diesel fuel and other high-margin refined products. Frontier purchases crude oil to be refined and markets refined petroleum products, including various grades of gasoline, diesel, jet fuel, asphalt and other by-products. The Company focuses its marketing efforts in the Rocky Mountain region, which includes the states of Colorado, Wyoming, Montana and Utah, and in the Plains States region, which includes the states of Kansas, Oklahoma, Nebraska, Iowa, Missouri, North Dakota and South Dakota.


Breakdown trigger $56.00 hit (4/11)

Position: Oct $60 Call FTO-JL @ $6.50
Cost reduced by -60 cents 4/25. Cost = $5.90

Cost reduction play April 18th
Sell May $65 Call FTO-EM @ $2.15, exit $1.55 4/25, +.60
Stop loss $64.95
Profit stop $60.00, hit 4/25

Entry $56.00 (4/11)

CSX - $70.72 - CSX Corp

CSX finally broke on profit taking in the transports and gave back -$4. I mentioned last week that I expected it to fail and aggressive traders could keep a tight stop and look to reenter with a drop to $71.50. The low on Friday was $70.35 with a close at $70.72. The $71.50 entry would have been just about perfect.

I expect transports to come roaring back on the current economic strength. I reentered on Friday with a stop at $67.

CSX operates the largest railroad in the eastern US and Bear Stearns thought increased operating efficiency and higher volumes of coal would raise earnings dramatically.

Earnings: April 18th $1.06 vs estimates of 89 cents

Company Info:

CSX Corporation (CSX) based in Jacksonville, Florida, owns companies providing rail, intermodal and rail-to-truck transload services that combine to form transportation companies, connecting more than 70 ocean, river and lake ports. CSX's principal operating company, CSX Transportation Inc. (CSXT), operates the railroad in the eastern United States with approximately 21,000-mile rail network linking commercial markets in 23 states, the District of Columbia, and the Canadian provinces of Ontario and Quebec. CSX Intermodal Inc. (Intermodal) is a coast-to-coast intermodal transportation provider, an integrated intermodal company serving customers from origin to destination with its own truck and terminal operations, plus a dedicated domestic container fleet. Containers and trailers are loaded and unloaded from trains, with trucks providing the link between intermodal terminals and the customer.


Breakout trigger $60.50 hit Apr-3rd
Position 2008 $65 LEAP Call YYD-AM @ $8.30

Entry $60.50 (4/03)

PBR - $100.63 - Petro Brasileiro ** Stopped $105.00 **

The game plan for the week was to trail a stop loss at -$2 off the price as the week progressed. That stop was hit on Wednesday when the price retreated from $107.15 to $105 intraday. That took us out of the position with nearly a +$10 gain. No complaints here.

The problems in Bolivia and confiscation of assets had me troubled last week and I wanted to make a tactical exit before the stuff hit the fan.

Earnings schedule: May 12th. Profit rose +33%

Company Info:

Petroleo Brasileiro S.A. - Petrobras (Petrobras) is a mixed-capital enterprise of which a majority of voting capital is owned by the Brazilian Government. The Company is engaged in a range of oil and gas activities, which include segments such as exploration and production, refining, transportation and marketing, distribution, natural gas and power, international, and corporate. Besides the dominant market position in Brazil, Petrobras has oil and gas activities in international locations, with significant international operations in Latin America, the Gulf of Mexico and West of Africa. During the year ended December 31, 2004, the Company had estimated proved developed and undeveloped crude oil and natural gas reserves of approximately 11.82 billion barrels of oil equivalent in Brazil and other countries.

Position: 2007 $95 LEAP Call VDW-AS @ 8.40
Cost reduced by -.35 on 4/25. Cost = 8.05, exit $18.00, 5/10 @ $105, +$9.95

Cost reduction play Apr-18th
Sell May $100 Call PBR-ET @ $2.05, exit $1.70, 4/25, +.35
Stop loss $$101.00 (in the money)
Profit stop $95 hit 4/25

Entry $87.00 (3/07)

SLB - $68.80 - Schlumberger Ltd. ** Stop Loss $67.00 **

SLB retraced -$6 of its gains and closed just above the support at $68 on Friday. Nothing has changed with the play and we will exit at $67 if the stop is hit.

Earnings: April 21st, 59 cents vs estimates of 55 cents

Company Info:

Schlumberger Limited (Schlumberger) is an oilfield services company that supplies technology, project management and information solutions for the oil and gas industry. Schlumberger consists of two business segments: Schlumberger Oilfield Services and WesternGeco. Schlumberger Oilfield Services is an oilfield services company that supplies a range of technology services and solutions to the international petroleum industry. WesternGeco, jointly owned with Baker Hughes, is a surface seismic company. On January 29, 2004, Schlumberger completed the sale of its SchlumbergerSema business to Atos Origin. During the year ended December 31, 2004, Schlumberger completed the initial public offering of Axalto and no longer retains any ownership interest in this business.

Position: (2) 2007 $60 LEAP Call VWY-AL @ $7.00
Cost increased: Stop loss 5/02 +1.55 to $8.55

April 24th cost reduction play:
Sell Aug $75 Call SLB-HO @ $2.95, exit $4.50, 5/02, -1.55
Set a profit stop at $64, changed to $66 4/30
Set a stop loss at $72, hit 5/02

Entry $57 (3/08) (split adjusted)

BTU - $68.98 - Peabody Energy ** No Stop **

BTU spiked to $76.29 on Thursday after the overnight spike in crude futures. That spike was quickly sold with a retreat to $69 on Friday. Nothing has changed with the play and $68 is strong support.

Peabody profits are not related to the price of oil and coal prices will rise along with gas prices. Summer cooling season is just ahead and BTU is going to be a long-term hold. We bought the 2008 LEAP in anticipation of a long-term position.

Earnings schedule: April 18th, +151% jump on +21% revenue gain.

Company Info:

Peabody Energy Corporation (Peabody) is the largest private-sector coal company in the world. During the year ended December 31, 2004, the Company sold 227.2 million tons of coal. It sells coal to over 300 electricity generating and industrial plants in 16 countries. The Company owns, through its subsidiaries, majority interests in 32 coal operations located throughout all the United States coal producing regions and in Australia. Most of the production in the western United States is low-sulfur coal from the Powder River Basin. In the West, it owns and operates mines in Arizona, Colorado, New Mexico and Wyoming. In the East, it owns and operates mines in Illinois, Indiana, Kentucky and West Virginia. The Company owns four mines in Queensland, Australia. Most of the Australian production is low-sulfur, metallurgical coal. In addition to the mining operations, the Company markets, brokers and trades coal.

Position: 2008 $55 LEAP Call LLW-AK @ $9.50
Cost increased 4/19 by +1.30 to $10.80
Cost increased 5/01 by +1.70 to $12.50

April 8th covered call:
Sell June $60 Call BTU-FL @ $2.20, stopped $3.50, 4/19, -1.30

April 24th covered call:
Sell Sept $70 Call BTU-IN @ $4.20, exit $5.90 5/01 -1.70
Set stop loss at $67.50, hit 5/01
Set profit stop at $58.00, changed to 58.50 4/30

Entry $48.00 (3/07)

PCU - $100.11 - Southern Copper Corp ** Stop Loss $92.00 **

PCU broke out of resistance at $100 and ran all the way to $110 before retracing its path on Friday to end the week only one penny from where it started. A week long $10 move erased in only a few hours. But, PCU was one of the few stocks that showed any material rebound Friday afternoon. Keep the faith! We are up +12 despite the retracement.


Prior commentary:

Part of the loss of traction is due to an announcement by PCU that they are looking to merge with Phelps Dodge (PD), Rio Tinto (RIO), Swiss based Xstrata (XTA.L) or Anglo American (AAL.L). The controlling shareholder of PCU (75% stake) is Grupo Mexico. PCU is looking for a sell off or a dilution of that stake in an effort to join with another global producer and increase profitability. This could be a very good deal for us depending on who end up with the company. PCU should go for a premium.

They are also suffering from the illegal strike at the La Caridad mine in Mexico. It has paralyzed production at the mine for a month. Mexican Labor Ministry has labeled it illegal and PCU is investigating ways to cancel the union agreements and end the strike.

PCU was upgraded by UBS to a "Buy" and Bear Stearns to an "Outperform". Deutsche Securities upped them to a "buy" on April 11th.

Earnings date Apr-26th: EPS +41%, revenue flat due to strikes.

Company Info:

Southern Copper Corporation, formerly Southern Peru Copper Corporation (SPCC), is an integrated producer of copper that operates mining, smelting and refining facilities in the southern part of Peru. The copper operations of the Company involve mining, milling and flotation of copper ore to produce copper concentrates, the smelting of copper concentrates to produce blister copper and the refining of blister copper to produce copper cathodes. SPCC also produces refined copper using the solvent extraction/electrowinning (SX/EW) technology. Silver, molybdenum and small amounts of other metals are contained in copper ore as by-products. Silver sold is recovered in the refining process or as an element of blister copper. Molybdenum is recovered from copper concentrate in a molybdenum by-product plant.

Position: Sept $85 Call PCU-IQ @ $6.20
Cost increased 4/25 on CC stop by +45 cents. Cost = $6.65

Tuesday April 18th
Sell May $105 Call PCU-EA @ $2.10, exit $2.55, 4/25, -.45
Stop loss $103.50, lowered to $101.50 4/23

Entry $78.00 (3/07)

XLE - $56.74 - Energy Select SPDR ** No Stop **

We saw a -$4 drop from the highs and a -$2 loss from last Friday's close. The XLE held on support at $57 for most of Friday but suffered a selling spurt at the close. Because it acts like an energy fund we should see a rebound next week as the leaders lift it higher while the herd stumbles along behind.

SPDR Info:

The Energy Select Sector SPDR Fund (the Fund) is an index fund that seeks to replicate the total return of the Energy Select Sector Index of the Standard & Poor's 500 Composite Stock Index (S&P 500 Index). During the fiscal year ended September 30, 2004 (fiscal 2004), the Fund had a return of 48.27%, as compared to the Energy Select Sector Index return of 48.91% and the S&P 500 Index return of 13.87%. The Fund invests in industries, such as energy equipment and services, and oil and gas services, among others. In fiscal 2004, its top five holdings were Exxon Mobil Corp., ChevronTexaco Corp., ConocoPhillips Inc., Schlumberger Ltd. and Occidental Petroleum Corp.

Breakdown of components of the XLE:
http://www.spdrindex.com/spdr/index.cfm?story=composition&symbol=XLE

Position: 2007 $55 LEAP Call OJW-AC @ $4.10

Entry $52.00 (3/07)

RAIL - $71.90 FreightCar America ** Stop loss $63 **

Rail mastered a very nice breakout over resistance at $72 and ran to $78 before the profit taking appeared. RAIL retraced -$6 to rest on $72 resistance turned support. Nothing changed on the play except the prices but I am greatly encouraged by the return of the bullish trend. On Thursday they declared a dividend of 3 cents but the market was already in free fall. 3 cents is hardly material for a $70 stock but it would at least buy lunch.

Earnings: April 26th. +1.67 EPS compared to .22 in 2005.

You may think RAIL is not an energy play but you would be wrong. 78% of its rail cars are for coal. You may remember in mid 2005 the coal companies saw a period of soft earnings because there was not enough rail capacity to get their coal to market. RAIL saw a +120% increase in orders in Q4 and saw a backlog of nearly 21,000 cars at year-end. That backlog fell to nearly 18,000 cars at the end of Q1 but still substantial. As more energy products are shipped from Canada and into Mexico the demand will continue to grow.


Company Info:

FreightCar America, Inc. is a manufacturer of aluminum-bodied railroad freight cars (railcars) in North America. The Company specializes in the production of coal-carrying railcars, which represented 78% of its deliveries of railcars, during the year ended December 31, 2004, while the balance of its production consisted of a broad spectrum of railcar types, including aluminum-bodied and steel-bodied railcars. It also refurbishes and rebuilds railcars and sells forged, cast and fabricated parts for all of the railcars that the Company produces, as well as those manufactured by others. Prior to April 1, 2005, the Company was named FCA Acquisition Corp. On April 1, 2005, a former parent company, also named FreightCar America, Inc., merged with and into FCA Acquisition Corp., with FCA Acquisition Corp. being the surviving corporation. In connection with the merger, FCA Acquisition Corp. changed its name to FreightCar America, Inc.

Currently the longest option you can buy is the September series.

Position: Sept $80 Call RQN-IP @ $4.00

Entry $67.00 (3/07)

OIH - $157.45 - Oil Service Holders ** Closed **

Take the money and run. The short put has not declined in weeks despite a run to $170 by the OIH. The drop on Friday to $157 raised the price from $14.80 to $16.20. It is obviously not being impacted greatly by the movement of the OIH at this level. I am more concerned that some event will appear to cost us premium after the large drop in the OIH this week.

Exit the play at $16.20 for a $13.40 profit gross profit.
The July $125 insurance put is worthless and the April $120 put expired worthless. Both cost $1.95 each making the net profit on the play $13.40 - 3.80 = $9.60


Holder Info:

The Oil Service HOLDRS Trust issues depositary receipts called Oil Service HOLDRS, representing an undivided beneficial ownership in the common stock of a group of specified companies that, among other things, provide drilling, well-site management, and related products and services for the oil service industry. The Bank of New York is the trustee. The Oil Service HOLDRS Trust was formed under a depositary trust agreement dated February 6, 2001. The 18 issuers of the underlying securities represented by Oil Service HOLDRS, as of August 1, 2005, were Baker Hughes Incorporated, BJ Services Company, Cooper Cameron Corporation, Diamond Offshore Drilling, Inc., ENSCO International Incorporated, Grant Prideco, Inc., GlobalSantaFe Corp., Halliburton Company, Hanover Compressor Company, Nabors Industries Ltd, Noble Corporation, National Oilwell Varco Inc., Rowan Companies, Inc., Transocean Inc., Smith International, Inc., Schlumberger Limited, Tidewater Inc. and Weatherford International Ltd.

(LEAP PUT SALE)

Position: SHORT 2007 $160 LEAP PUT ZJO-ML @ $29.60, closed 5/14
Position: LONG July $125 Put OIH-SE @ $1.95, worthless
Position: LONG April $120 Put OIH-PD @ $1.95, expired worthless
Recap: Closed 5/14 $13.40 - $3.80 in expired puts = $9.60 profit

4/17/06
Buy July $125 PUT OIH-SE currently $1.95 to replace April put

Entry $135 (2/28)

TLM - $55.40 - Talisman Energy ** Stop Loss $54 **ac

Exit target = $60

Dang it! TLM spiked from last weeks $56.40 to just over $59 after posting what appeared to be great earnings on Monday. The 3:1 split was approved by shareholders. The profit taking knocked it back to -$1 below last Friday's level.

I set a profit stop at $60 last week and we did not quite make it. The market weakness took us out of range again and we are negative -$1.70 while we wait for the next bounce.

I am lowering the exit target to $59 in light of the solid resistance there during the last two rallies. The 3:1 split will give us (3) $20 calls if we are not out before the split date.


Earnings: May 9th. +40% cash flow, production +14%


3:1 Stock split scheduled for around May-26th

Prior play commentary:

Talisman is an aggressive driller operating worldwide. Net income increased +139% for 2005. Production increased +7% to 470,000 boe/d and Talisman replaced 189% of those reserves produced. This makes Talisman a very likely takeover target for somebody like Conoco looking to acquire Talisman's nearly 2 billion bbls of proven reserves and its worldwide drilling operations.

Talisman recently announced a 3:1 split to be effective on May-25th. This should provide some added lift to the stock price as we move into the summer rally period. I believe we should buy the October $60 call, which will split into (3) $20 calls and hopefully be in the money before the split occurs. A $20 stock of this caliber should be catnip to players on a budget and I expect it to be bought quickly. With option premiums currently $4.50 they will split to a cost of $1.50 each. It is hard to go wrong with a price like that.

Company info:

Talisman Energy Inc. (Talisman) is an independent international upstream oil and gas company whose main business activities include exploration, development, production, transporting and marketing of crude oil, natural gas and natural gas liquids. The Company's operations, during the year ended December 31, 2004, were conducted principally in four geographic segments: North America, the North Sea, Southeast Asia and Algeria. The Trinidad Angostura project began production in January 2005. Exploration is being advanced in other areas outside the principal geographic segments, including Alaska, Colombia, Qatar and Peru. During 2004, total production averaged 438 million barrels of oil equivalent per day (mboe/d) and the Company exited the year producing 452 mboe/d in December. In 2004, the Company drilled 641 successful wells.

Position: October $60 Call TLM-JL @ $6.00

Entry $56.44 (3/05)

DO - $91.71 - Diamond Offshore Drilling ** Stop Loss $88 **

DO spiked to a new record high at $98 on Thursday and then cratered in the blood bath that followed. No change in the play and strong support is $90 with the stop at $88.

Earnings: April 26th, $1.06 compared to 23 cents in 2005

Company Info:

Diamond Offshore Drilling Inc. engages principally in the contract drilling of offshore oil and gas wells. As of December 31, 2004, the Company had a fleet of 45 offshore rigs consisting of 30 semisubmersibles, 14 jack-ups and one drillship. Diamond offers a range of services worldwide in various markets, including the deep water, harsh environment, conventional semisubmersible and the jack-up market. Its principal markets for its offshore contract drilling services are the Gulf of Mexico, including the United States and offshore Mexico, Europe, principally the United Kingdom and Norway, South America, Africa and Australia/Southeast Asia. From time to time, its fleet operates in various other markets worldwide. Diamond provides offshore drilling services to a customer base that includes private and independent oil and gas companies and government-owned oil companies.

Position: 2007 $80 LEAP VCT-AP @ $10.00
Cost adjustment +1.80 on 3/29 short call stop. Cost = $11.80
Cost adjustment +0.80 on 5/07 exit early. Cost = $12.60

Tuesday Feb-21st cost reduction strategy:
Sell the September $95 Call DO-IS @ $4.90, stopped 3/29, $6.70
Set a stop loss on the call at DO $90, changed to $89 3/19
Buy back the call on a dip to $68. Changed to $75 on 3/05

May 1st cost reduction strategy:
Sell Sept $100 Call DO-IT @ $6.50, exit 5/07, 7.30, -0.80
Set a stop loss at $97.
Set a profit stop at $84.

Entry $75 (2/15)

RIG - $84.36 - Transocean Inc ** Stop Loss $79 **

RIG hit a new historic high of $90 on Wednesday and then retreated to $84 by Friday's close. On Friday RIG doubled its share buyback plan to $4 billion from $2 billion with $3.6 billion to be spent by the end of 2007. RIG said the increase in the amount of shares to be bought was due to an increasing contract backlog and profitable new opportunities on the horizon. Now we need the market to recover so investors can buy the news.

Earnings: May 4th, +61 cents vs +28 cents in prior qtr

Company info:

Transocean Inc., formerly known as Sonat Offshore Drilling Inc., is an international provider of offshore contract drilling services for oil and gas wells, related equipment and work crews, primarily on a dayrate basis, to drill oil and gas wells. The Company operates with a particular focus on deepwater and harsh environment drilling services. The Company also provides additional services, including management of third-party well service activities. The Company's Transocean drilling segment consists of drillships, semisubmersibles, jackups and other drilling rigs.

Position: 2007 $80 LEAP VOI-AP @ $9.00
Cost reduction:
Added +0.80 cents on 3/1 Call stop. Cost = $9.80
Added +1.70 on 4/6 call stop. Cost = $11.50
Cost reduced on 4/25 by -0.45 at CC stop. Cost = $11.05

Monday Mar-20TH cost reduction strategy:
Sell the May $85 call RIG-EQ @ $2.80, stopped @ $4.50 4/6, -1.70
Set a profit stop at $74
Set a stop loss at $84.95

Tuesday Feb-21st insurance strategy:
Sell the March $75 Call RIG-CO @ $1.90, stopped at $2.70 3/01
Buy the May $65 Put RIG-QM @ $2.00, expiring worthless
Maintain a profit stop on the put at $57

Tuesday April 18th cost reduction call
Sell May $90 Call RIG-ER @ $1.80, exit $1.35, 4/25, +0.45
Stop loss $89.


Entry $75.00 (2/14)

GI - $71.97 - Giant Industries ** Stop Loss $68 **

Giant retreated less than most with a -$4 dip but a decent recovery on Friday. Support at $70 is holding and providing a base for the next rally. Giant received several upgrades despite the refinery fire.

Earnings: May 3rd, loss of -85 cents vs +80 cents. Refinery fire cost nearly 1/3 of production capacity for the full qtr.

Company info:

Giant Industries, Inc., through its subsidiary Giant Industries Arizona, Inc. and other subsidiaries, refines and sells petroleum products on the East Coast primarily in Virginia, Maryland, and North Carolina and in the Southwest primarily in New Mexico, Arizona, and Colorado, with a concentration in the Four Corners area where these states meet. Phoenix Fuel Co., Inc., another subsidiary, distributes commercial wholesale petroleum products primarily in Arizona. The Company has three business units: retail group, which operates service stations including convenience stores or kiosks; Phoenix Fuel, a commercial wholesale petroleum products distributor selling diesel fuel, gasoline, jet fuel, kerosene, motor oil, hydraulic oil, gear oil, cutting oil, grease and various chemicals and solvents, and refining group, which operates the Company's Ciniza and Bloomfield refineries in the Four Corners area of New Mexico and the Yorktown refinery in Virginia.

Position: Sept $65 Call GI-IM @ $8.50
Cost reduction:
Cost reduced by -3.75 on 3/12 to $4.75.
Cost increased by +2.00 on 4/05 to $6.75

Monday Mar-20TH cost reduction strategy:
Sell the June $75 call GI-FO @ $2.40, stopped 4/05 @ $4.40, -2.00
Set a profit stop at $58.50
Set a stop loss at $72.50

Tuesday Feb-21st cost reduction strategy:
Sell the June $75 Call GI-FO @ $5.60, closed 3/12 $1.85, +3.75
Set a stop loss on the call at $73, changed to $69 3/05
Set a profit stop on the call at $52, changed to $56 on 2/26

Entry $60 (2/14)

HP - $74.83 - Helmerich Payne ** Stop loss $69 **

Same story different stock. HP hit a new historic high at just over $80 on Thursday and then collapsed to $75 at Friday's close. Strong support at $74 should provide a base for a rebound.

Earnings date: April 27th, +1.22 vs 43 cents in 2005.

Company info:

Helmerich & Payne, Inc. is primarily engaged in contract drilling of oil and gas wells for others. It is also engaged in the ownership, development and operation of commercial real estate. The Company is organized into two separate operating entities: contract drilling and real estate. The Company's contract drilling business is composed of three business segments: United States land drilling, United States offshore platform drilling and international drilling. The Company's United States land drilling is conducted primarily in Oklahoma, Texas, Wyoming, Colorado, and Louisiana, and offshore from platforms in the Gulf of Mexico and California. The Company also operated in seven international locations during the fiscal year ended September 30, 2005: Venezuela, Ecuador, Colombia, Argentina, Bolivia, Equatorial Guinea and Hungary. In addition, the Company is providing drilling consulting services for one customer in Russia. Its real estate investments are located in Tulsa, Oklahoma.

Position: Sept $75 Call HP-IO @ $7.20
Cost reduction: Cost reduced by -2.75 on 3/8 to $4.45.
Cost increased: Cost increased by +0.95 on 4/11 CC stop to $5.40

Monday Mar-20TH cost reduction strategy:
Sell the June $75 call HP-FO @ $2.05, $3.00, 4/11, -0.95
Set a profit stop at $62.00
Set a stop loss at $74.50

Tuesday Feb-21st cost reduction strategy:
Sell the June $70 Call HP-FN @ $4.70, closed 3/8 $1.95, +2.75
Set a stop loss on the call at $69.95
Set a profit stop on the call at $59, changed to $61 2/26

HP Entry $69 (2/13)

NOV - $66.96 - National Oilwell Varco ** Stop Loss $65 **

New high at $73 failed to break resistance at that level and Friday saw a retreat to $67. Hurricane season is coming. That is good business for NOV. Maintain the stop at $65 just in case the storms don't get here soon enough.

Earnings: April 26th, EPS 68 cents vs 33 cents in 2005

Company Info:

National-Oilwell Varco Inc., formerly National-Oilwell, Inc. designs, manufactures and sells systems, components and products used in oil and gas drilling and production, as well as distributes products and provides services to the exploration and production segment of the oil and gas industry. The Company's Products and Technology segment designs and manufactures complete land drilling and workover rigs, as well as drilling-related systems on offshore rigs. Non-capital revenue sources within its Products and Technology segment include drilling motors and specialized downhole tools that are sold or rented, spare parts and service on the large installed base of its equipment, expendable parts for mud pumps and other equipment and smaller downhole, progressive cavity and transfer pumps. Company's Distribution Services segment provides maintenance, repair and operating supplies and spare parts to drill site and production locations throughout North America and to offshore contractors.

Position: Aug $65 Call NOV-HM $6.90
Cost reduction: Cost reduced by -2.90 on 3/3 to $4.00.
Cost increased: Cost increased by +2.50 on 4/11 to $6.50

Monday Mar-20TH cost reduction strategy:
Sell the May $65 call NOV-EM @ $2.40, exit $4.90, 4/11, -2.50
Set a profit stop at $56.50
Set a stop loss at $66.75 (yes it is in the money) I am betting on resistance at $65 to hold ahead of hurricane season.

Tuesday Feb-21st cost reduction strategy:
Sell the May $70 Call NOV-EN @ $4.20, closed 3/7 $1.30, +2.90
Set a stop loss on the call at $69.95
Set a profit stop on the call at $58

NOV Entry $61.50 (2/14)

SUN - $73.64 - Sunoco ** Stopped $76 **

SUN failed to find any buyers after posting earnings that declined on higher than expected costs. We were stopped out on 5/10 at $76 for $9.00 and a +30 cent profit. We had sold a call for a $2.10 profit and bought the May $70 put for $2.75 giving us a net debit of 65 cents. Subtracting the 30 cents on the LEAP we are struggling with a whopping 35 cost on the remaining put. That put is bid at 25 cents today and I am closing the books on SUN with those numbers. HOWEVER, I would not personally close the put on the outside chance the negative sentiment on SUN will continue to push it lower next week. It will be a race with the clock with SUN at $73.64 and five days until expiration. I would roll the dice and see what we get. Plan on selling the put on any dip below $70 but don't let any premium evaporate on a sudden dip.

Earnings: May 3rd, profits fell -32% on higher expenses

Shareholder meeting: May 4th

Original play description:

Sunoco has refining capacity of nearly 1 mbpd spread over five refineries and controls 4500 miles of pipeline and sells through 4528 retail outlets. They would make a very nice takeover target for Valero with a market cap of only $10.4 billion compared to $33 billion for Valero. Net income rose +61% in Q4 to $974 million. Valero made $1.35B for the same period.

Company Info:

Sunoco, Inc. operates through its subsidiaries as a petroleum refiner and marketer, and chemicals manufacturer with interests in logistics and coke making. Sunoco's petroleum refining and marketing operations include the manufacturing and marketing of a range of petroleum products, including fuels, lubricants and some petrochemicals. Sunoco's chemical operations consist of the manufacturing, distribution and marketing of commodity and intermediate petrochemicals. The Company's operations are organized into five business segments: refining and supply, retail marketing, chemicals, logistics and coke.

Position: 2007 $80 LEAP VUN-AP @ $8.70, stop 5/10 $9.00

Recap: $9.00 -8.70 = +.30 on LEAP
May Put @ $2.75 - May Call @ $2.10 = .65 net debit
May Put is bid at .25 on 5/12, +.30 on LEAP = +.55
Net debit of .65 on call/put - net credit on Put/Leap .55 = -.10

Tuesday Feb-21st insurance strategy:
Sell the May $90 Call SUN-EA @ $2.95, closed 3/27 @ .85, +2.10
Buy the May $70 Put SUN-QN @ $2.75
Set a stop loss on the call at $89.95.
Set a profit stop on the put at $65, changed to $66 2/26.
Set a profit stop on the call at $70.

Entry $72.51 (2/12)

COP - $65.10 - Conoco Phillips ** Closed **

Conoco continues to lose ground as gas prices implode. After the Burlington acquisition it appears they are more reactive to gas prices. Conoco also has some exposure to the new Venezuela, Orinico River asset confiscation in Venezuela. Conoco also has exposure in Russia and after Putin's comments on energy last week I no longer have confidence those assets are safe.

I am closing the play today at $65.10, $6.70 on the LEAP while we still have a profit of +1.70. I know it is not much compared to the three-month hold time but we have to play the cards we are dealt. The break of support on Friday at $66 is critical.

Earnings: April 26th, EPS $2.37 vs $2.06

Play description:

Conoco continues to hover in the $58-$64 range. This should be support as the acquisition of Burlington Industries approaches. The companies expect it to conclude in the first half of 2006. Burlington reported earnings that nearly doubled the prior year in Q4 and Conoco reported earnings that rose more than +50%. Together they should receive some synergistic benefits and increase shareholder value. Conoco is the most aggressive integrated oil company when it comes to adding reserves. They are not afraid to pay for them and they are clearly planning for the future.

Company Info:

Conoco Phillips is an integrated energy company. The Company's business is organized into six operating segments. The Exploration and Production segment primarily explores for, produces and markets crude oil, natural gas, and natural gas liquids on a worldwide basis. The Midstream segment gathers and processes natural gas produced by Conoco Phillips and others, and fractionates and markets natural gas liquids. The Refining and Marketing segment purchases, refines, markets and transports crude oil and petroleum products. The LUKOIL Investment segment consists of the Company's equity investment in LUKOIL, an international, integrated oil and gas company. The Chemicals segment manufactures and markets petrochemicals and plastics on a worldwide basis. The Emerging Businesses segment encompasses the development of new businesses, including new technologies related to natural gas conversion into clean fuels and related products, technology solutions, power generation and emerging technologies.

Position: 2007 $65 LEAP OJP-AM @ $5.00, exit 5/12, $6.70, +1.70

Insurance Put: None

Entry $60.00 (02/08)

SU - $83.84 - Suncor Energy ** Closed **

I am closing Suncor more as a tactical decision rather than a weakening of the play. I still like Suncor but the stop loss on the covered call in April added +3.95 to the cost of the LEAP. After watching Suncor fail at $89 resistance repeatedly since April 18th the skid out of the trading range on Friday was disconcerting. With our adjusted cost at $9.40 on the LEAP and Friday's closing bid at $10.80 I want to avoid slipping back into a negative position. I am going to bail on the position for a minor profit but relieve my worries that it could get worse. It is not the fault of Suncor but of the bad luck we had on that last covered call. The spike in Suncor at the time nailed us for a -$3.95 loss on the stop and removed a substantial part of our accumulated profits. I would not hesitate to buy Suncor on a dip to $81 or a breakout over $90 but this last six weeks of range bound agony has worn me out. Take the money and lets put it back into something else.

Earnings schedule: May 4th

Play description:

Suncor is very active in the Canadian oil sands and has a strong plan to ramp production for the next decade. This is a very strong company in charge of their own fate. There are no OPEC concerns, no terrorists and no problems like Hugo Chavez. With the new government in Canada their business problems will likely ease instead of get worse.

I ate lunch with the Vice President of Suncore a couple months ago and he answered my questions very positively and with lots of confidence. I strongly believe this will be a good company for a long time. That does not mean profits cannot be hurt if we suddenly end up with an oil glut but that is not likely.

Company Info:

Suncor Energy Inc. (Suncor), formerly Suncor Inc., is a Canadian integrated energy company that explores for, acquires, develops, produces and markets crude oil and natural gas, transports and refines crude oil and markets petroleum and petrochemical products. Periodically, the Company also markets third-party petroleum products. Suncor also carries on energy trading activities focused principally on buying and selling futures contracts and other derivative instruments based on the commodities the Company produces. The Company has four principal operating business units: Oil Sands; Natural Gas; Energy Marketing and Refining, Canada, and Refining and Marketing, United States of America.

Position: 2007 $85 LEAP OYX-AQ @ $10.40 2/06
Position: 2007 $85 LEAP OYX-AQ @ $7.70 on 2/13,
average cost $9.05
Cost reduction: Cost reduced by -3.60 on 3/8 to $5.45.
Cost increased: Cost increased by +3.95 on 4/6 to $9.40
Exit 5/12 @ $10.80, +1.40

Monday Mar-20TH cost reduction strategy:
Sell the June $85 call SU-FP @ $2.65, exit 4/6, $6.60, -3.95
Set a profit stop at $71.00
Set a stop loss at $83.50

Tuesday Feb-21st insurance strategy:
Sell the March $80 Call SU-CP @ $2.65, closed 3/8 .20, +2.45
Buy the March $70 Put SU-ON @ $0.85, closed 3/8 $2.00, +1.15
Set a stop loss on the call at $79.95.
Set a profit stop on the put at $65, changed to $70 2/26.
Set a profit stop on the call at $68, changed to $70 2/26.

CCJ - $41.21 - Cameco ** No stop **

Cameco continued its post earnings stealth rally to a new historic high of $45.34 on Thursday. A -$5 drop followed but we did see some bargain hunting at the close when support at $40 was tested and held. No change in the play.

Earnings: April 30th. 32 cents vs .07 cents in prior qtr.

Original Play Description:

We were triggered on the breakout at $72.50 on Monday and again on the $67 breakdown target on Wednesday. Each trigger was for a 1/2 position giving us a full position with an average cost of $9.80 each. That turned out to be the closing price on Friday so if you missed either opportunity you did not miss anything. We are going to add another full position after CCJ splits on Feb-23rd.

This is my best single play in the list. Cameco just announced record earnings and raised their forecast for 2006 and beyond. They projected a +40% rise in revenue and a rise in margin from 23% to 28% for 2006. At the same time they announced a 2:1 split for Feb-23rd on the NYSE. They also raised the dividend to 32 cents from 24 cents payable on April 13th.

They also announced they were buying Zircatec for $108 million. Zircatec is a maker of nuclear fuel bundles for Canadian designed heavy water reactors. They said the acquisition would moderately boost 2006 earnings assuming no material changes in operations.

The combination of events including the purchase of Zircatec caused the stock to plunge from its all time high of $82.15 on Feb-1st to close at $69.97 on Friday Feb-3rd. That level remained support for the entire week through Feb-10th.

Company Info:

Cameco Corporation is engaged in exploring, developing, mining and milling uranium ore to produce uranium concentrates. The Company is also a commercial converter of uranium concentrates (U3O8) to UF6 (uranium hexafluoride), as well as a supplier of services to convert uranium concentrates to UO2 (uranium dioxide). Cameco, through its subsidiaries, has a 31.6% limited partnership interest in Bruce Power Limited Partnership, which operates six nuclear reactors in Ontario, Canada. Cameco also owns 53% of Centerra Gold Inc. (TSX: CG), a growth-oriented gold mining and exploration company engaged in the acquisition, exploration, development and operation of gold properties in Central Asia, the former Soviet Union and other emerging markets.

Pre-split entries:
Breakout target $72.50 hit
Position: 2007 $80 LEAP ZBK-AP 1/2 position @ $10.60 (2/06)

Breakdown target $67.00 hit
Position: 2007 $80 LEAP ZBK-AP 1/2 position @ $9.00 (2/08)

Pre-split average cost: $9.80
Post split position: (4) 2007 $40 LEAP ZBK-AH @ $4.90
Cost reduction: -.75 on 3/21, cost now $4.15

Additional Position: 2008 $40 LEAP LTA-AH @ $9.00 on 2/25.
Added after the 2:1 split on 2/24

Put insurance: None

Monday Mar-20TH cost reduction strategy:
Sell the June $40 call CCJ-FH @ $1.75
Set a profit stop at $33.50, hit 3/21, exit $1.00, +0.75
Set a stop loss at $39.95

HAL - $77.00 - Halliburton ** No Stop **

HAL is holding in the $77-$83 range after earnings and approaching the shareholder meeting on May 17th. There is plenty of confusion over KBR and how/when the spin-off will impact HAL. The general consensus is that HAL should reach $100 without KBR holding them back.

Support at $76 should hold any further weakness unless crude prices dip to below $68. We should begin to see some play on the split now just two weeks away.

Earnings: April 21st, 91 cents

Play description:

Halliburton is planning on spinning off KBR, its construction and engineering unit. This should produce a significant bounce in HAL stock. (KBR stands for Kellogg, Brown and Root) HAL is a very strong service company and should soar when it is no longer held in check by the sins of KBR.

2:1 Split to be approved at May 17th shareholder meeting.

Company Info:

Halliburton Company is an oilfield services company, and a provider of engineering and construction services. The Company provides services, products, maintenance, engineering and construction to energy, industrial and governmental customers. Its six business segments are Production Optimization, Fluid Systems, Drilling and Formation Evaluation, Digital and Consulting Solutions, collectively the Energy Services Group, and Government and Infrastructure, and Energy and Chemicals, collectively known as KBR. In August 2004, the Company sold its surface well testing and sub-sea test tree operations to Power Well Service Holdings, LLC. In January 2005, the Company emerged out of the chapter 11 proceedings and can operate the businesses without Bankruptcy Court supervision.

Current position: 2007 $80 LEAP Call VHW-AP @ 11.25

Original Position: 2007 $85 LEAP Call VHW-AQ @ $9.80
Monday March 20th: Position change
Sold the 2007 $85 LEAP VHW-AQ, exit $4.25.
Bought the 2007 $80 LEAP VHW-AP, entry $5.70.

Our adjusted cost in the 2007 $80 LEAPS is now $11.25
The strike is lower and will split into (2) $40 LEAPS @ $5.63

Insurance Put: None until after the split

Entry $79.00 (2/06)

UPL - $63.43 - Ultra Petroleum ** Stop Loss $60 **

UPL continues to trade in its range after setting a new three month high on Thursday at $68.60. Support at $62. UPL is not reacting as violently to the drop in natural gas as COP was.

However, I am adding a stop at $60 just in case gas continues to implode and take UPL with it.

Ultra is planning 160 wells in Wyoming this year and now that winter restrictions have been removed they are in full production mode. They may linger in this price range until gas prices begin to firm we have plenty of time.

Earnings: May 5th, 41 cents +81% vs 23 cents in 2005 qtr.

Original play description:

Ultra was one of the few that did not get hit on Monday. The breakdown target at $62 was our trigger on Tuesday but unfortunately it was followed by a -$7 drop on Thursday. They announced earnings on Tuesday that beat the street but they were hammered on Thursday after announcing they entered into a pipeline agreement with Rockies Express Pipeline (REP) for $70 million a year for ten years starting in 2007. REP is obligated to build pipelines to southwestern Wyoming and transport 200,000 MMBtu per day of gas to connecting hubs for Ultra.

Ultra's finding and development cost for 2005 was $0.56 per MCFe and reserve replacement was 773%, both the best in the industry. Ultra has 17 years of drilling planned with 160 wells planned for 2006 in Wyoming alone. They produced 73.4 Bcfe of gas in 2005 which suggests the 200,000 MMBtu capacity being contracted above is only a portion of their expected Wyoming production. With Wyoming gas selling for more than $8 per MMBtu in January that represents $1.6 million in gas production through the pipeline per day or roughly $584 million per year. I would gladly pay $70 million for pipes to carry $584 million of gas to market.

Ultra ended 2005 with no debt. Their profit per MCFe was $6.94 in Q4. Net profit increased +111% in 2005, ROE was 55%. Proved reserves in Wyoming at the end of 2005 were 2.022 TCFe of gas, a +32% increase over 2004. Proved and probable reserves were 6.29 TCFe. This represents better than a 2000% increase in reserve growth since 1999. Ultra has more than 2877 scheduled wells to drill in Wyoming over the next 17 years.

Company Info:

Ultra Petroleum Corp. is an oil and gas company engaged in the development, production, operation, exploration and acquisition of oil and gas properties. The Company's operations are focused in the Green River Basin of southwest Wyoming and Bohai Bay, offshore China. During the year ended December 31, 2004, it owns interests in approximately 166,974 gross (92,997 net) acres in Wyoming covering approximately 260 square miles. The Company owns working interests in approximately 241 gross productive wells in this area and is operator of 41.5% of the 241 gross wells. Through Pendaries Petroleum Ltd., it is active in oil and gas exploration and development in Bohai Bay, China. The Company also owns interests in 15,518 gross (14,652 net) acres in Pennsylvania, as well as interest in approximately 720 gross (320 net) acres and interests in three productive wells in Texas.

Position: 2007 $70 LEAP Call OZH-AN @ $10.70
Cost reduction: Cost reduced by -3.00 on 3/7 to $7.70
Cost reduction: Cost reduced by -3.30 on 3/7 to $4.40
Cost increased: Cost increased by +.85 on 4/18 to $5.25

Monday Mar-20TH cost reduction strategy:
Sell the June $70 call UPL-FN @ $1.85, exit 2.70, 4/18, -85
Set a profit stop at $52.00
Set a stop loss at $70.50

Tuesday Feb-21st insurance strategy:
Sell the June $65 Call UPL-FM @ $4.30, closed 3/7 $1.30, +3.00
Buy the June $55 Put UPL-RK @ $4.30, closed 3/7 $7.30, +3.30
Set a stop loss on the call at $64.95.
Set a profit stop on the put at $50.
Set a profit stop on the call at $50.

Entry $62 (2/08)

VLO - $62.49 Valero ** No Stop **

VLO is not performing as well as I expected. The progression of lower highs is entirely out of character for this stock. Ordinarily VLO turns oil into gold but something is dragging on it with the lack of upward mobility. We still have a decent profit of +$6.25 but I am getting nervous. If there is no resumption of the bullish trend by next week I am planning on an early exit. No reason to bleed to death while waiting for the next hurricane to knock out the competition.

Earnings: April 25th, +60%

Company Info:

Valero Energy Corporation (Valero) owns and operates 18 refineries having a combined throughput capacity, including crude oil and other feedstocks, of approximately 3.3 million barrels per day. Valero produces environmentally clean refined products, such as reformulated gasoline (RFG), gasoline meeting the specifications of the California Air Resources Board (CARB), CARB diesel fuel, low-sulfur diesel fuel and oxygenates (liquid hydrocarbon compounds containing oxygen). It also produces conventional gasoline, distillates, jet fuel, asphalt and petrochemicals. Valero markets branded and unbranded refined products on a wholesale basis in the United States and Canada through a bulk and rack marketing network. It sells refined products through a network of more than 4,700 retail and wholesale branded outlets in the United States, Canada and Aruba. Valero's retail operations include approximately 1,500 company-operated sites that sell transportation fuels and convenience store merchandise.

Position: 2007 $60 LEAP Call VHB-AL @ $6.60
1/30 Cost reduced by spread on put/call -0.90, now $5.70
2/06 Cost reduced by -1.00 on closed call, now $4.70
2/09 Cost reduced by -3.10 on closed $57 put, now $1.60
2/14 Cost increased by +0.15 on exited Mar-$45 put, now $1.75
4/11 Cost increased by +1.20 on CC stop loss, now $2.95

Monday Mar-20TH cost reduction strategy:
Sell the June $67.50 call ZPY-FR @ $1.25, exit 2.45, 4/11, -1.20
Set a profit stop at $53.75
Set a stop loss at $64.50

Monday Feb-13th
Set profit stop on March $45 put at $48 on VLO, exit $1.05 2/14
Insurance Put: March $45 Put VLO-OI @ $1.20
Put entered on 12/27 when VLO traded at $51

Monday Feb-6th:
Close the March $65 Call VLO-CM @ $1.50, +1.00
Set a profit target on the March $57 put at $54, exit $4.70 (2/9)

Monday Jan-30th:
Sell March $65 Call VLO-CM @ $2.50 bid
Buy March $57.50 Put VLO-OY @ $1.60 ask
Set a stop loss on the call at $64. Profit stop at $54
Set a profit stop on the put at $52.

Entry $52.30 (12/16)

CHK - $31.57 Chesapeake Energy ** Sell Stop $33.25 **

CHK has the best illustration of support at the 200-day average I have ever seen. Unfortunately this grinding motion higher is shrinking the LEAP premium and every dip knocks a few more cents of the rebound. I have confidence CHK will eventually break out of this rut but it may be too late for us.

Place a sell stop at $33.25 to exit on the next rebound to the top of the range.


Company Info:

Chesapeake Energy Corporation is an oil and natural gas exploration and production company engaged in the acquisition, exploration and development of properties for the production of crude oil and natural gas from underground reservoirs and the marketing of natural gas and oil for other working interest owners in properties that it operates. The Company's properties are located in Oklahoma, Texas, Arkansas, Louisiana, Kansas, Montana, Colorado, North Dakota and New Mexico. The proved oil and natural gas reserves as of December 31, 2004 were approximately 4.9 trillion cubic feet of gas equivalent (tcfe). At December 31, 2004, approximately 89% of the Company's proved reserves (by volume) were natural gas, and approximately 70% of its proved oil and natural gas reserves were located in the primary operating area, the Mid-Continent region of the United States, which includes Oklahoma, western Arkansas, southwestern Kansas and the Texas Panhandle.

Position: 2007 $35 LEAP VEC-AG @ $4.00
Cost increased: +55 cents on 1/30 covered call. Cost $4.55
Cost reduction: -40 cents on 2/21 covered call. Cost $4.15
Cost increased: Expired put insurance +2.30. Cost = $6.45

Insurance Put:
April $25 CHK-PE when CHK traded at $28 on 11/07 @ $2.30, expired

Covered Call 12/27:
Sold the April $35 Call CHK-DG currently $2.15
Set a stop loss on the call at $34.95, exit @ $2.70, -.55, 1/30

Tuesday Feb-21st cost reduction strategy:
Sell the April $32.50 Call CHK-DZ @ $1.40, stop 3/30, 1.00, +.40
Set a stop loss on the call at $32.50.
Set a profit stop on the call at $27, change to $28 on 2/26.

Entry $29 (11/04)

 

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