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BHP - $62.29 +7.49 BHP Billiton ** Stop Loss $47.50 **

BHP blasted off after posting profits of +35%, raising the dividend and guiding higher. BHP said demand from China and other Asian countries was powering the gains. Earnings increased to $7.1 billion.

Breakdown target: $55 hit 8/15/07

Position: 2010 $70 LEAP Call LPH-AN @ $9.00


NOV - $121.00 +12.35 National Oilwell ** Stop Loss 110.00 **

What an amazing rebound from our $100 entry point! NOV declared a 2:1 split last week with a record date of Sept-7th and a pay date of Sept 28th. I am planning on exiting our calls the weekend before the split and we will reenter the position with our profits. When a stock splits much of the premium disappears with the lower valuations. We want to capture the most premium possible.

Breakdown target: $100 hit 8/16/07

Position: FEB $110 Calls NOV-BB @ $9.70


CCJ - $39.74 +3.29 Cameco ** Stop Loss $30 **

Nice rebound along with the metals and miners. Hopefully this trend continues. No news.

Breakdown target: $35 Hit 8/16/07

Position: 2010 $50 LEAP Call LTA-AJ @ $7.20

Non-Energy Positions

RIMM - $81.86 +8.36 - Research in Motion

RIMM exploded from the drop to $186 on the prior Thursday and then continued to move higher when the 3:1 split occurred on Tuesday. We now have 3 times the number of options we had pre-split and we are deep in the money on both strikes.

For initial commentary see the July 1st newsletter.

Earnings schedule: Sept 27th.

Breakdown trigger: $168.00 hit 6/25

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

Call spread post-split:
Position: LONG (3) 2009 $60 LEAP Call VHO-AL @ $10.87
Position: SHORT (3) 2009 $76 LEAP Call VHO-AU @ $ 3.62


BSC $117.10 -1.10 - Bear Stearns *** Stop Loss $97 ***

BSC is still taking flack from the debt wreck with S&P slashing ratings on seven Bear Stearns Asset Backed Trust classes. Earnings are Sept-13th.

Breakdown target $100 hit 8/06/07

Position: 2010 $120 LEAP Call YBO-AD @ $25.60


CFC - $21.00 -0.43 Countrywide Financial ** Stop Loss $15 **

Countrywide appears to have dodged a bullet as Banc America took a $2 billion position in the company. The CEO said on Friday there were still tough times ahead but Countrywide was in no more danger today than they were at any other point in their history.

I believe Countrywide has a rocky road ahead but they will come out on top once the mortgage market opens up again. They are likely to face serious layoffs and a sharp reduction in revenue as they revert to primarily agency qualified paper.

Breakdown target $20.00 hit 8/15/07

Position: 2010 $30 LEAP Call YJD-AF @ $7.00

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