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In Play Updates and Reviews

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Energy Play Updates
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MDR - $58.16 +2.51 McDermott Intl ** No Stop **

No specific news but another nice week for McDermott.

Breakout trigger: $51.00 (hit 3/24)

LEAP Call Spread
Long 2009 $55 LEAP Call OYZ-AK @ $8.28
Shrt 2009 $75 LEAP Call OYZ-AO @ $3.10

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TS $51.00 +2.17 - Tenaris *** Stop Loss $42 ***

Easing over resistance at $50 and a new 5-month high. No specific news but the uptrend is continuing.

Breakdown trigger: $46.00 hit 3/19

Position: SEP $50 Call TSW-IJ @ $3.40

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HP $49.41 +3.25 Helmerich & Payne *** Stop Loss $41 ***

HP broke out to a new historic high and never looked back. It has been a long time since an energy stock hit a new high even with oil at $110. This is still a buy on any pullback.

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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SPWR $90.40 +16.77 - SunPower

SunPower continues to rock with news items almost daily about new projects in the solar sector. Definitely no complaints here.

Southern California Edison announced a 250-megawatt solar project in California that will consist of two square miles of solar panels. That turned up the heat on the solar stocks and the race was on. That single project is more than the entire U.S. production of solar cells in 2006.

Here is the story

Breakout trigger: $66 (hit 3/24)

LEAP Call Spread
Long 2010 $80 LEAP Call LMO-AP @ $20.00
Shrt 2010 $130 LEAP Call LMO-AW @ $8.70

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CY 26.68 +3.67 - Cypress Semi *** Stop Loss $21.50 ***

No specific news on Cypress other than an earnings date of Apr-17th. Cypress is spiking on the gains in SunPower where they are a major stockholder.

Breakout trigger: $21.50 (hit 3/24)

Position 2010 $25 LEAP Call WSY-AE @ $4.90

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TOL $24.46 +2.01 - Toll Brothers *** Stop Loss $21.50 ***

Toll is holding right at resistance but showing no indications of a failure. Odds are good we are either going to see a sell the news/rally event this week or a breakout. It is a coin flip from my view.

Breakout trigger: $25

Position: 2010 $30 LEAP Call YKW-AF @ $5.40

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C $24.08 +3.25 - Citigroup *** Stop Loss $20.00 **

Citi is holding its gains for the week but showing no indications it is going higher. For short-term traders the rebound from the March lows provides a perfect exit point. For bears they may not be so eager to jump back in just yet.

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

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


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Covered LEAP Calls
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AAPL $153.08 +10.07 Apple Inc *** Covered LEAP Call ***

This week is going to be a critical resistance test for Apple at $155 and the convergence of the 100/200 ($154/$150) day averages. A positive breakout here would be huge.

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 $119.99 +4.65 Research in Motion - No stop

Another 3-month high on blowout earnings. Definitely no complaints here.

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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