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UNT $54.21 +1.85 - Unit Corp

Still pressing upside resistance. One good pop to get us past $55 and we should be good to go. Earnings on Tuesday.

Breakout trigger: $52.00 hit 02/04

Position: Sept $55 Call UNT-IK @ $3.80

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PBR $118.55 +4.10 Petrobras *** Stop Loss $104 ***

No material news and Petrobras hit a new historic high on Thursday. The trend is up but resistance at $120 is holding.

Breakout trigger: $101.50, hit 1/24

Position: 2009 $110 LEAP Call XVQ-AB @ $12.70

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VLO $59.93 +1.56 Valero *** Stop Loss $54 ***

It was a quiet week in the refinery sector and VLO is still stuck under resistance at $61. Once oil begins to decline the refiners should rise on expectations of wider margins.

Breakdown trigger: $50.00, hit 1/23

Position: 2009 $60 LEAP Call VHB-AL @ $5.00

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FLS $102.97 +6.80 Flowserv *** Stop loss $90 ***

Nice move despite news that Flowserve will pay $10.5 million for a penalty for kickbacks in the U.N. Oil for Food Program. No complaints here.

Breakdown trigger: $77.50, hit 1/22

Position: July $90 Call FLS-GR @ $6.00

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FLR $131.84 +11.06 - Fluor Corp *** Stop $105 ***

FLR is rocking now! Up +$20 over just the last two weeks and Friday's move broke over resistance at $130. No complaints. Earnings are Feb-28th. Let's hope they don't screw this up. Boone Pickens added to his FLR holdings in Q4.

Earnings schedule: Feb 28th

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 $137.96 +8.89 - Transocean Inc

RIG reported earnings that rose +70% and quickly sprinted for a $10 gain. That took RIG to solid resistance at $140 but continued strength in the energy sector should allow that to be broken over the next couple of weeks. Should oil decline I could see RIG return to $130 to wait. Goldman raised RIG to a BUY after their earnings.

Earnings: Feb 20th, +70%

Breakdown trigger: Hit 12/4 @ $130

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

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CLB $125.70 +7.15 Core Labs

Core Labs is kicking butt after earnings the prior week. Nearing resistance at $125-$130 but garnering upgrades on almost a daily basis.

Earnings: $1.36, +39%.

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 $76.24 +4.31 - Foster Wheeler

Earning next Tuesday. Let's hope they pull a RIG and not an OII. No specific news. It looks like FWLT has finally eased over resistance at $72 but it has not yet broken the bounds of gravity. We could pickup speed over $77.

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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NOV $64.85 +2.81 - National Oilwell Varco *** Stop $52 ***

Moving in the right direction but just moving slow. No specific news. Resistance at $66.

Earnings: Feb 6th +57%

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

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

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HP $43.73 +1.78 Helmerich & Payne *** Stop Loss $33 ***

Another new high on no news. I think I will just put this one on "ignore" and check back in a month or so. (grin)

Earnings: Jan-31st $1.02

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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ATI $83.64 +1.18 - Allegheny Technology

After last week's big move I am not complaining about ATI today. Resistance at $85 and no news. It was a crappy market and we still saw a gain.

Entry: ATI 76.60 02/10

Position: 2009 $90 LEAP Call OYG-AR @ $8.90

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TEX $67.64 +7.84 Terex Corp

Dead stop on resistance at $67.50 after a $5 spike on earnings. Profits soared +72% on a 27% jump in revenue. Go TEX!

Earnings: Feb 21st, +72%, +27% in revenue

Position: Jan 2009 $70 LEAP Call VXQ-AN @ $8.60

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SGR $64.53 +4.71 Shaw Group

Shaw is picking up speed on no news. We are approaching resistance at $67.50 but the trend is strong.

Breakdown trigger: $55 Hit Jan-16th

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

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MOS $108.96 +5.59 - Mosaic Co

MOS gave back $3 on profit taking on Friday and still closed up +$5.50 for the week. POT made bullish comments all week about the business and guided analysts higher for years to come.

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 $119.46 -5.17 Apple Inc *** Covered LEAP Call ***

It was an ugly week with a decline every day. The low on Friday was a retest of the Feb-7th low but unless the Nasdaq bigcaps suddenly catch fire this is going to be a long-term hold. No change.

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 $150 LEAP Call VAA-AW @ $20.80
Breakeven: AAPL @ $136.12

Position changes:
Closed $200 LEAP Short @ $9.40 ($30.00 - 9.40 = gain +20.60)
Replaced with $150 LEAP short @ $20.80
AAPL cost basis $177.52 - $41.40 (20.60 + 20.80) = 136.12
Breakeven: AAPL @ $136.12

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RIMM $107.95 +12.76 Research in Motion - Stop Loss $80

Finally a decent move by RIMM. I said last week I would be a buyer of short term calls over $98 but I did not expect a $10 move all in one day. RIMM upgraded its guidance well above analyst expectations.

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 (cost $102.60 -9.10 $150 LEAP = 93.50)
SHORT 2009 $110 LEAP Call VHO-AB @ $18.30 on 1/14/08

Closed: 1/14
SHORT 2009 $150 LEAP Call XTB-AJ @ $18.50, close $9.40 +9.10
 

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