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USO $86.51 +2.78 Oil Fund - Short ** Stopped $85.00 **

The single day dip in the prior week triggered our entry and the first inventory drop in 8 weeks killed us. The +$5 rebound on that news revived the uptrend and the rest as the say is history.

Breakdown trigger: $79.00 hit Mar-4th

Position: April $77 PUT UNA-PY @ $2.70, exit $1.50, 3/10

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MDR $51.90 -1.41 McDermott Intl *** Stop $49.00 ***

Definitely no complaints here. With some stocks falling by double digits last week we should be thankful that McDermott maintained its gains and suffered only a minor loss. No news and no change in play.

Position: Jan-09 $60 LEAP call OYZ-AL @ $6.90

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UNT $55.45 +.57 Unit Corp *** Stop Loss $53 ***

No news, no change.

Breakout trigger: $52.00 hit 02/04

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

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PBR $108.22 -3.45 Petrobras *** Stopped $108 ***

I am really sorry to see PBR stopped out but $110 support failed and regardless of how we feel about a company that just doubled its reserves we had to take the profitable exit.

Breakout trigger: $101.50, hit 1/24

Position: 2009 $110 LEAP Call XVQ-AB @ $12.70, exit $19.00, 3/10

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FLS $96.19 -4.45 Flowserv *** Stop loss $94 ***

A third week of losses as the past favorites become the lepers in a bear market. Only a dollar above our stop so FLS could be a short timer without a market bounce on Monday.

Breakdown trigger: $77.50, hit 1/22

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

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FLR $136.54 -1.97 - Fluor Corp *** Stop $130 ***

Hang in there Flour! Support at $135 is still holding. No news and no change in play.

Earnings: Feb 28th +$2.82 with items vs street $1.18

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 $137.55 +1.24 - Transocean Inc ** Stop Loss $130 **

Positive news regarding the drillers came from multiple sources and that enabled RIG to post a slight gain for the week. Support is still $135 and we have a stop at $130.

Earnings: Feb 20th, +70%

Breakdown trigger: Hit 12/4 @ $130

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

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CLB $122.40 +4.15 Core Labs *** Stop $115 ***

With several brokers pounding the table on Core last week it was the second biggest gainer in the portfolio. This could be the dark horse coming from behind.

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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HP $44.15 +1.76 Helmerich & Payne *** Stop Loss $41 ***

No news and no change in play. HP performed very well in a weak market.

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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C $19.78 -1.13 - Citigroup

Citi was looking like a great play by Tuesday's close with a strong +$3 rebound off the lows. Along came the Bear Stearns liquidity problem and the bottom fell out again. I am still positive on Citi but we need to get past the broker earnings and the FOMC meeting next week.

Position: 2010 $25 LEAP Call WRV-AE currently $4.00

Insurance:
Position: June $17.50 Put C-RR currently $1.25

Buying the insurance covers you against a catastrophic loss through mid June.

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JEC $73.04 -2.98 Jacobs Engineering *** Stopped $73.00 ***

Nothing but good news but evidently nobody was reading it. Our stop was hit on Monday and the chart is starting to look like a breakdown in progress. Can you have too much business? Can you win too many contracts? This is a market problem not a stock problem.

Breakout trigger: $82.50 hit 2/25

Position: 2009 $90 LEAP Call VJE-AR @ $12.00, exit $7.20, 3/10

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ATI $73.51 +3.44 - Allegheny Technology *** Stopped $69.00 ***

This is the worst case stop loss problem. The Monday market sell off pushed ATI to our stop before it rebounded to close the week +3. I like ATI and I think the outlook is great. We just have to wait for the market to turn positive. A move over $77 would be tough to ignore.

Entry: ATI 76.60 02/10

Position: 2009 $90 LEAP Call OYG-AR @ $8.90, exit $4.60, 3/10

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TEX $66.58 +2.13 Terex Corp *** Stop $59.00 ***

Fortunately TEX missed our stop on Monday and TEX rebounded to near its recent highs on Thursday. Sometimes being lucky is better than being good.

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

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

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SGR $59.51 -.57 Shaw Group ** Stopped $57 ***

Same story different symbol. Monday's market implosion knocked us out. No specific news.

Breakdown trigger: $55 Hit Jan-16th

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

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MOS $107.23 +3.17 - Mosaic Co *** Stopped $97.00 ***

A 2-day $15 drop hit our stop and cost us a $15 bounce on the two days that followed. Those that thrive on volatility die by that same volatility. Fortunately we captured nearly a $10 profit.

Breakdown trigger: $85 Hit Jan-10th

Position: 2010 $100 LEAP Call LXW-AT @ $24.20, exit $33, 3/10

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Covered LEAP Calls
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AAPL $126.61 +4.36 Apple Inc *** Covered LEAP Call ***

Looks a lot like a positive trend starting but we need a move over $130 before we start getting excited again.

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 $101.69 +3.65 Research in Motion - Stop Loss $80

Breathing a little easier here as RIMM shook off the AAPL news about additional business features on their phones. Still no trend but a move back over $105 would be welcome.

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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