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DNR $24.95 +.26 - Denbury Resources ** Stopped $24 **

Broke even for the week but the market drop took us out at $24.

Breakdown trigger: $53, post split $26.50 hit 12/17

Position: June $30 Call DNR-FF @ $2.25, exit 1.15, -1.10

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FLR $120.95 +3.84 - Fluor Corp

That was much better than the prior week. Friedman Billings upgraded FLR to an outperform and support held at $110. No other specific news.

Breakdown trigger: $145 Hit 12/13

Position: 2009 $160 LEAP Call XOB-AL @ $22.30

Remediation plan: 1/20
LONG: April $110 Put FLR-PB @ $9.20
SHORT: Jan $170 LEAP Put XOB-MN @ $58.40

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RIG $127.11 -1.30 - Transocean Inc

Fortunately we did not have a stop on RIG as it fell to $111 on Wednesday and then rebounded to $133 on Friday. News that Allis Chalmers (ALY) was paying $438 million for Bronco Drilling (BRNC) pushed all the drillers higher.

Earnings schedule: Feb 20th

Breakdown trigger: Hit 12/4 @ $130

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

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JEC $77.18 +2.97 Jacobs Engineering Group *** Stop $70 ***

JEC held up very well last week and the Tuesday morning dip was instantly bought in high volume. That is a good sign for the future of JEC. JEC reported earnings that rose +61% and bookings increased to $15 billion from $10.4 billion. JEC raised its full year 2008 outlook to $2.95-$3.25 from $2.70-$3.10 saying business trends were very positive.

Earnings: Jan 22nd, +61%

Breakdown target: $80.00 Hit 11/12

Position: Jan-2009 $90 LEAP Call VJE-AR @ $10.40

Closed: APR 2008 $90 Call JEC-DR @ $6.50, exit 1/20 @ $3.10

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CNQ $63.00 -0.77 Canadian Natural Res. *** Stopped $61 ***

Blown out in the market drop. CIBC and Friedman Billings both upgraded to an outperform.

Entry 11/29: $66

Position 11/29: 2009 $90 LEAP Call OKR-AR @ $6.50, exit 1.90

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CLB $112.65 +1.16 Core Labs

No news, big +18 rebound from the weeks lows. Still holding at support at the 200-day average.

Earnings schedule: Feb 14th

Breakdown Trigger: $130 hit 11/12

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

Remediation addition:
Position: June $130 Call CLB-FF @ $6.10

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FWLT $65.57 +.60 - Foster Wheeler

Foster split 2:1 on Jan-23rd and our $150 LEAPS became (2) $75 LEAPS. DA Davidson upgraded FWLT to a buy on Jan-24th. No other news.

Earnings schedule: Feb-26th

2:1 split on Jan-22nd.

Breakdown trigger: $67.50 hit 11/06 (post split)

Position: (2) 2009 $75 LEAP Call ZHF-AO @ $14.55

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XOM - $83.94 -1.14 Exxon Mobil

Very thankful there was no stop on XOM. The Wednesday dip knocked it back to $77 and the Friday high was $87. Earnings are Friday.

Breakdown trigger: $88 Hit 11/01

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

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CVX $81.82 -1.64 - Chevron *** Stopped $78 ***

Support broke at $80 and we were stopped on the dip.

Earning schedule: Feb-1st.

Breakdown trigger: $87 hit Oct-22nd

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

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NOV $63.57 +4.02 - National Oilwell Varco

Another position I am glad there was no stop. The dip to $53 on Tuesday was followed by a rebound to $68 on Friday on the Bronco Drilling acquisition. That is a $15 bounce we would have missed with a stop.

Earnings schedule: Feb 6th

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

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

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HP $35.77 +0.30 Helmerich & Payne *** Stop Loss $29.50 ***

Not near the volatility as NOV and RIG and still well above our stop and our insurance put. Earnings are Thursday.

Earnings schedule: Jan-31st

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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Non-Energy Positions
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SGR $53.50 -1.50 Shaw Group

A $12 range on Shaw and they closed very close to the top. The news is full of new contract awards and all we need is for the market to cooperate.

Breakdown trigger: $55 Hit Jan-16th

Position: 2009 $60 LEAP Call OWA-AL @ 11.50

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MOS $91.40 +11.38 - Mosaic Co

Biggest winner of the week with a $27 range from the Tuesday low to the $98 high on Friday. MOS did not hit our $70 target to add the put spread so that plan is now off the table. The volatility here is huge and I could not justify adding a simple insurance put for $3 at $20 out of the money. We just need to fasten our seatbelts and hold on. The strong Potash profits and guidance provided rocket fuel to Mosaic and let's hope that trend continues.

Breakdown trigger: $85 Hit Jan-10th

Position: 2010 $100 LEAP Call LXW-AT @ $24.20

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Covered LEAP Calls
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AAPL $130.01 -31.33 Apple Inc *** Covered LEAP Call ***

Of all the plays in the portfolio I am most disgusted with myself for picking Apple. I really did not expect them to screw up so bad or for the market to cut them off at the knees. Now we are faced with a position we can't afford to exit without first recovering some money.

Close the short 2009 $200 LEAP currently $9.40
Short the 2009 $150 LEAP Call currently $20.80

That will reduce our cost in AAPL as follows:

LONG AAPL @ $177.52 (Jan-14th open)
Closed $200 LEAP Short ($30.00 - 9.40 = gain +20.60)
Short $150 LEAP @ $20.80
AAPL cost basis $177.52 - $41.40 (20.60 + 20.80) = 136.12

When Apple starts to post a new positive trend we will do a put spread to recover some more money. First we wait for the trend.

Position:
Long: AAPL @ open of $177.52 (Jan-14th open)
Short: 2009 $200 LEAP Call OBR-AT @ $30.00
Breakeven: AAPL @ $136.12

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RIMM $91.05 +2.47 Research in Motion - Covered Call Stop Loss $80

RIMM saw a nice rebound from its $80 lows after the CEO said they expected little impact from any potential recession. RIMM actually came close to touching the $100 level on Friday before the afternoon sell off knocked them back to $91. The high was $99.49. There is life left in this stock if the market decides to move higher.

See the Jan-13th LEAPs newsletter for the description of the change in the options.

Alert entry 11/12 @ $102.60

Covered LEAP Call:

LONG RIMM @ $102.60
SHORT 2009 $110 LEAP Call VHO-AB @ $18.30 on 1/14/08

Closed:
SHORT 2009 $150 LEAP Call XTB-AJ @ $18.50, close $9.40 1/14
 

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