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In Play Updates and Reviews

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CVX - $81.02 -4.18 - Chevron Put *** Stop loss $88.00 ***

Profit stop: $75

Chevron continues to decline now down over 15% from its July high. $80 should be support but a break in crude prices back under $75 should help crack that Chevron support. I am going to target the 200-day average for an exit, currently at just over $75.

For initial commentary see the July 22nd newsletter.

7/23/07 Position: Dec $90 Put CVX-XR @ $4.70


TSO - $45.42 -2.47 Tesoro Put *** Stop Loss $53 ***

Profit stop: $37.50

Tesoro has already broken its 200-day average and could easily return to something in the $35 range. I am going to target $37.50 for an exit.

For initial commentary see the July 22nd newsletter.

7/23/07 Position: Nov $50.00 PUT TSO-WJ @ $3.50


XLE - $66.12 -2.38 Oil SPDR Put *** Stop Loss $71.50 ***

Profit stop: $62

The XLE cracked major support at $67 on Friday thanks to the weakness in the oil service sector. The 200-day is currently $62 and that is going to be my exit target. I know this is the second time I changed it but you have to keep up with the changing environment.

For initial commentary see the July 15th newsletter.

Breakdown trigger: $72, hit 7/18

7/18/07 Position: Dec $70 Put XBT-XR @ $3.00

Profit target: XLE $62


RIMM - $218.50 +2.80 - Research in Motion

No harm here despite the -$10 intraday drop on Friday. Plenty of time and no hurry to exit.

For initial commentary see the July 1st newsletter.

Earnings schedule: Sept 27th.

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


HOS - $43.19 +0.72 - Hornbeck Offshore *** Stop $39.50 ***

Hornbeck continues to push higher although very erratically given the sorry shape of the market in general and the energy sector. This is the little energy stock that thinks it can!

For initial commentary see June 10th newsletter

Earnings schedule: August 2nd

Breakdown trigger: $39.00 hit 6/08

Position: 2009 $40 LEAP Call ZIG-AH @ $8.00


ATW $64.65 -4.12 - Atwood Oceanics ** Stopped $67 **

We lost another player on Thursday when Atwood finally succumbed to sector selling. We still doubled our money so no complaints here.

Interesting article in Investors Business Daily regarding Atwood.

For initial commentary see April 29th newsletter.

Earnings schedule: Aug 8th

Breakout trigger $60.50 hit 4/23/07
Position: 2009 $70 LEAP Call ZFJ-AN @ $6.50
Exit: 8/02 @ $12.60, +6.10 profit.


CHK $35.17 +1.39 - Chesapeake Energy ** Stop $29.00 **

This is an insurance put we bought really cheap several months ago when CHK was a long LEAP position. We were stopped on the LEAP but kept the put in play.

CHK reported earnings on 8/02 and spiked +$2 above congestion on the news. The true test will be next week. Now that earnings are over can it sustain its trend?

Insurance put:
Oct $30 Put CHK-VF @ 90 cents. Profit stop $29

Non-Energy Positions

BZH - $11.30 -4.30 - Beazer Homes *** STOPPED $12.75 ***

Beazer plunged to $8.11 on the bankruptcy rumor. Almost immediately multiple brokers came out in support of Beazer and the stop recovered half its losses. I sent an email on Wednesday afternoon lowering the stop to $12.75 just in case the abundance of broker support caused a rebound in BZH. On Thursday BZH rose to hit our stop and take us out of the play. It may still continue lower but we can't complain about making $12 on a $3 put.

Beazer has several suits pending, some seeking class action status on charges it practiced predatory lending, filed illegal loan documents and manipulated its stock price.

For initial commentary see March-31st newsletter

Earnings: July 26th, loss of $3.20 per share vs Est -.32

Position: Jan-08 $25 PUT WZF-ME @ $3.10
Exit: 8/02 @ Stop $12.75 for $15.30, +12.20 profit.

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