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RIG $136.00 +0.93 - Transocean Inc

Transocean hit a new historic high on Tuesday and that kept them from posting a loss for the week after they declined with the market into Friday's close.

Initial breakdown trigger: Hit 12/4 @ $130

Position: 2009 $140 LEAP Call VOI-AH @ $15.80

Secondary trigger: $120

Buy 2009 $140 LEAP Call VOI-AH to average down

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JEC $95.31 +1.23 Jacobs Engineering Group

Not another stellar week for JEC but they did notch a new high on Friday and after +$20 gains over the last three weeks we are not going to complain.

No LEAPS

Breakdown target: $80.00 Hit 11/12

Position: APR 2008 $90 Call JEC-DR @ $6.50

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COP $83.29 -.01 Conoco Phillips *** Stop Loss $74.00 ***

Still holding at 3-week highs on no news.

Breakdown target: $80 hit 11/12

Position: 2009 $90 LEAP Call OJP-AR @ $8.60

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CNQ $68.38 +1.08 Canadian Natural Resources

Still holding at 3-week highs on no news. Encana reported it was going to focus more on U.S. gas production instead of Canadian. CNQ and ECA had previously said they would reduce drilling in Canada after the government sharply raised taxes a couple months ago.

Entry 11/29: $66

Position 11/29: 2009 $90 LEAP Call OKR-AR @ $6.50

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CLB $123.32 +3.80 Core Labs

CLB posted a decent gain for the week despite a -$4 post Fed drop. CLB appears to have found a bottom from its recent slide and hopefully that $120 level will be a base to launch a new rally in January.

Breakdown Trigger: $130 11/12

Position: 2009 $140 LEAP Call ZYM-AH @ $21.30

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FTI $58.21 +2.63 FMC Technologies *** Stop Loss $49 ***

FMC won a new Statoil contract for subsea gas compression. It was small potatoes at $35 million but every little bit helps. FTI is still maintaining upward momentum out of the November dip.

Breakdown Trigger: $57 hit 11/12

Position: APR $65 Call FTI-DM @ $4.75

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PBR $107.33 +.62 Petrobras *** Stop Loss $92 ***

After spiking to $114 on Wednesday on news of yet another discovery the weak market brought it back down to what is becoming support at $105. After a $20 spike over the last two weeks we have no complaints.

LEAPs Alert Entry 11/12 @ $95

Position: 2009 $90 LEAP Call VDW-AR @ $17.10

Position: 2009 $110 LEAP Call XVQ-AB @ $10.00

Alert on 11/2 recommending an immediate entry into the $110 LEAP. The prior recommendation had been calling for an entry into the $90 LEAP on a dip to $80. The correct LEAP for the current position is the $110 LEAP.

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SGR $59.29 -7.90 Shaw Group *** Stop Loss $55 ***

This was a rough week for Shaw with investors knocking $10 off the stock from last week's highs. The only news was a notice of sales by the companies three top officers totaling 320,000 shares. I suspect this was more profit taking and tax selling rather than some new unknown event. $58 should be support.

LEAPs Alert Entry 11/12 @ $61

Position: 2010 $70 LEAP Call YCW-AN @ $20.40

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FWLT $159.80 -5.68 - Foster Wheeler

After +35 in the prior two weeks we are perfectly happy with a -5 drop. There was no news.

The board approved a 2:1 split subject to shareholder approval around January 8th.

Breakdown trigger: $135 hit 11/06

Position: 2009 $150 LEAP Call ZHF-AW @ $29.10

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PTR $181.81 -21.12 - PetroChina *** Stop Loss $170 ***

Now that was really painful. There was no news specific to PetroChina and the brunt of the selling was due mostly to the nearly 300-point decline in the Chinese market. The Shanghai Index fell from 5209 on the 11th to 4964 on the 13th. The drop from 6200 to 4800 since Oct 16th has Chinese investors spooked. There was a two-week rebound after the bottom at 4800 on Nov-28th and it appeared investors sold the bounce when the inflation numbers roiled the market. $180 should be support for PTR.

Breakdown trigger $194.32 Entered on rebound from $190 on 11/08

Position: 2009 $220 LEAP Call ZJK-AZ @ $32.20

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XOM - $91.18 -.32 Exxon Mobil

Exxon still holding near a 6-week high even with the Dow tanking. No specific news.

Breakdown trigger: $88 Hit 11/01

Position: 2009 $100 LEAP Call ODU-AT @ $7.90

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CAM - $95.71 -2.97 Cameron International *** Stop Loss $90 ***

CAM eased off its highs as profit taking gripped the market. There was no news of note other than shareholder approval of a 2:1 split for the end of December. No change in play.

2:1 Stock split 12/28 to holders of record on 12/17

Breakdown target: $95 Hit 10/30

Position: 2009 $100 LEAP Call OKA-AT @ $18

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SLB $94.57 -2.62 - Schlumberger

SLB announced their earnings schedule for Jan-18th. No other specific news as the stock declined with the post Fed markets.

Breakdown target: $95.00 hit Oct-22nd

Position: 2009 $100 LEAP Call VWY-AT @ $15.60

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CVX $92.02 +1.06 - Chevron

No specific news but Chevron rose as several of the refiners were upgraded. Chevron is holding near a 6-week high.

Breakdown trigger: $87 hit Oct-22nd

Position: 2009 $100 LEAP Call VCH-AT @ $6.40

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OII $69.42 -2.10 Oceaneering International

+$7, -$2, I will take those alternating weeks for the rest of the year. OII is holding right on the 100-day at $69. Let's hope it stays there.

Earnings Nov-1st: +40%

Breakdown trigger: $72 hit on Oct-22nd

Position: APR $80 Call OII-DP @ $5.40

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NOV $77.37 +3.85 - National Oilwell Varco

National's trend continued for the third week and another 6-week high. A break over $80 should really trigger some buying interest. No news.

Breakout Trigger: $80, hit 10/11/07

Position: 2008 May $90 Call NON-ER @ $7.20

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MDR - $57.54 +1.94 McDermott Intl *** Stop Loss $45 ***

McDermott announced it won a contract with Pmex to build the Maloob-C Drilling Platform in 269 feet of water in the Bay of Campeche, Mexico. The platform will support 18 wells and weigh over 5,800 tons when completed in early 2009. There was no other news.

Earnings: Nov 8th, +37%

Breakout trigger: $53, hit 9/20

Position: 2009 $60 LEAP Call OYZ-AL @ $9.00

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UPL $69.44 +1.53 - Ultra Petroleum *** Stop Loss $62 ***

UPL spiked to more than $72 and a new high on Wednesday but declined with the market to only a minimal gain for the week. No news.

Breakdown target: $52.50 Hit 8/30

Position: Jan 2009 $60 LEAP Call OZH-AL @ $8.00

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CHK $38.21 -.16 Chesapeake Energy

No news and no move. Just holding its gains for the prior two weeks.

Earnings: Nov 7th -34%, beat by 3 cents.

Position: 2010 $35 LEAP Call WZY-AG @ $6.60
10/28 Price update: Expired Oct Put +90 cents, $7.50

Insurance put:
Oct $30 Put CHK-VF @ 90 cents. Expired

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HP $36.36 -.07 Helmerich & Payne *** Stop Loss $29.50 ***

HP hit a new high on Wednesday before losing -$2 on the Friday swoon. There was a good article on companies using HP rigs to drill 20 wells per pad to cut down on costs.

Earnings: Nov-15th, +18%, beat by +6 cents at 93 cents

Position: Jan 2009 $35 LEAP Call ZQA-AG @ $4.50

Insurance put:
Position: Nov $30 HP-WF. @ .50, Stop $28.50

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BHP - $71.07 -5.93 BHP Billiton ** Stop Loss $60.00 **

BHP refuses to let the Rio Tinto deal die and reiterated last Thursday that it is still in the fight to force RTP shareholders to take their 3:1 offer. Unfortunately worries that BHP could raise the offer of waste precious time and money in the battle caused shares to drop about $8 from the week's high.

Breakdown target: $55 hit 8/15/07

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


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Non-Energy Positions
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None


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Covered LEAP Calls
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RIMM $105.98 +2.33 Research in Motion *** Covered Call ***

RIMM has earnings next Thursday so it is put up or shut up time for RIMM bears. I believe the RIMM bashers will be proved wrong once again.

Alert entry 11/12 @ $102.60

Covered LEAP Call:

LONG RIMM @ $102.60
SHORT 2009 $150 LEAP Call XTB-AJ @ $18.50

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LVS - $117.70 -1.18 Las Vegas Sands *** Covered Call ***

No material news on LVS but Monday saw a sharp spike to a new 2-week high. Resistance at $120 is proving tough to crack. Nevada gamblers lost $1.16 billion in October according to a recent report. That was nearly a 10% increase from the prior year. No change in play.

Covered LEAP Call

LONG: 100 Shares LVS @ $117
SHORT: 2009 $140 LEAP Call ZAU-AY @ $20.00 No Stop

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ETFC $3.87 -0.26 E*Trade Financial *** Covered Call ***

No news and no movement. Still holding around $4 while the subprime mess ferments.

Buy ETFC currently $4.13
Sell Jan-2009 $5 LEAP Call OYN-AA currently $1.45

Profit if called: Premium 1.45 + appreciation .87 = $2.32
Cost of entry: $4.13 - 1.45 or $2.68
Profit = $2.32 / $2.68 or 86%
 

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