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MDR $49.13 -2.77 McDermott Intl *** Stopped $49.00 ***

Even after a very bullish conference call on March-20th the market worked its magic and took us out of MDR. I am reentering above $51.

Position:
Jan-09 $60 LEAP call OYZ-AL @ $6.90, exit $6.00, 3/17

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UNT $52.95 -2.50 Unit Corp *** Stopped $53 ***

No news, bad market, ugly stop.

Breakout trigger: $52.00 hit 02/04

Position: Sept $55 Call UNT-IK @ $3.80, exit $3.70, 3/20

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FLS $99.63 +3.44 Flowserv *** Stopped $94 ***

On a week where Flowserve gained $3.44 we were stopped on Monday's opening dip. There is no justice.

Breakdown trigger: $77.50, hit 1/22

Position:
July $90 Call FLS-GR @ $6.00, exit 13.40, 3/17 +7.40

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FLR $131.13 -5.41 - Fluor Corp *** Stopped $130 ***

A $15 drop on Monday wiped us out but FLR rebounded +20 on Tuesday. That was followed by an $18 drop on Wednesday. To say the volatility in FLR is huge would be an understatement. If you took the remediation position back in January you are still ahead on that spread and I would continue to hold those positions.

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, exit $13.70, 3/17

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 $131.14 -6.41 - Transocean Inc ** Stopped $130 **

Continued news of shortages in the deep water drilling market and RIG rolled over instead. It was a case of the outgoing tide taking everyone lower.

Earnings: Feb 20th, +70%

Breakdown trigger: Hit 12/4 @ $130

Position: 2009 $140 LEAP Call VOI-AH @ $15.80, exit $17.10, 3/17

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CLB $111.41 -10.99 Core Labs *** Stopped $115 ***

CLB had held up pretty well for weeks but the bottom fell out on Wednesday on no news. Bad market and sector rotation killed us.

Earnings: $1.36, +39%.

Breakdown Trigger: $130 hit 11/12

Position:
2009 $140 LEAP Call ZYM-AH @ $21.30, exit $8.50 (est) 3/19

Remediation addition:
Position: June $130 Call CLB-FF @ $6.10, exit $3.40, 3/19

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HP $43.20 -2.71 Helmerich & Payne *** Stop Loss $41 ***

HP dipped with the market but remained over the stop. Stifel Nicolaus upgraded them to a buy on the 18th.

Earnings: Jan-31st $1.02

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

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

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Non-Energy Positions
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C $22.50 +2.72 - Citigroup

Citi is rocking now. The Fed actions seem to have given the sector a solid boost that suggests the bottom is behind us.

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

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

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TEX $58.89 -7.69 Terex Corp *** Stopped $59.00 ***

Recession fears crushed the machinery sector and TEX was the lead player.

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

Position: Jan 2009 $70 LEAP Call VXQ-AN @ $8.60, exit $8.20, 3/20


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Covered LEAP Calls
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AAPL $133.27 +6.66 Apple Inc *** Covered LEAP Call ***

Looks like a launch! We still have some resistance to cross but aggressive players could start adding some speculative calls here.

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 $104.94 +3.25 Research in Motion - Stop Loss $80

Still cautious on RIMM but it looks like resistance at $105 is about to break.

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

Alert entry 11/12 @ $102.600

Covered LEAP Call:

LONG RIMM @ $102.60 (cost $102.60 -9.10 $150 LEAP = 93.50)
SSHORT 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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