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MDR - $56.00 -2.18 McDermott Intl ** No Stop **

McDermott had news of new contract awards but that is a weekly occurrence. They did announce they would report earnings on May 12th. McDermott and others in the group were down slightly after Shaw (SGR) missed earnings slightly.

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 $50.63 -.37 - Tenaris *** Stop Loss $47 ***

Tenaris said it completed the sale of its Hydril pressure control business to GE for $1.115 billion. Other than that there was little news. TS declined slightly into Friday but remains above prior resistance at $50. I raised the stop just in case trouble arrives.

Breakdown trigger: $46.00 hit 3/19

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

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HP $51.62 +2.21 Helmerich & Payne *** Stop Loss $41 ***

HP continued to move higher hitting a new high at $52.30 on Friday. There is no weakness here! HP announced its earnings date of May 1st.

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 $87.76 -2.64 - SunPower

After a +$16 week I am very happy with only a -2 pullback. Wells Fargo boosted SunPower's credit line from $50 million to $150 million through July-2012. Other chipmakers trying to capitalize on the solar trend, AMAT and MEMC, were cut last week by Goldman and Credit Suisse. At the same time First Solar (FSLR) was mentioned kindly. Eventually we are going to see the winners double and triple and the laggards will fall by the wayside.

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 26.29 -0.39 - Cypress Semi *** Stop Loss $21.50 ***

+$3 last week, -.39 this week, I will take it every time. Simtek (SMTK) rejected an offer by Cypress to buy the company for $2.20 per share. SMTK was trading at $2.55 on Friday. Cypress owns 19.3% of SMTK already. Counting the shares they don't own the $2.20 offer represents about $28 million. Just going out to the market and buying the rest at $2.55 would only increase the buy to $32 million. Looks like a no brainer to me. Just put in a bid at $2.40 and keep your mouth shut. Odds are good you will end up with a controlling interest very quickly. SMTK was trading at $1.86 when CY made the $2.20 offer. Withdraw the formal offer and it could be $1.86 again very quickly.

Breakout trigger: $21.50 (hit 3/24)

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

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TOL $22.47 -2.00 - Toll Brothers *** Closed ***

Toll is starting to look weak again along with the sector. It may be just too early to play the homebuilders. I am going to take the $1.30 loss and abandon the play. Fitch warned on Friday that declining prices, tighter lending standards and deepening recession would keep the pressure on builders into 2009.

Breakout trigger: $25

Position: 2010 $30 LEAP Call YKW-AF @ $5.40, exit 4.10, -1.30

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C $23.36 -0.72 - Citigroup *** Stop Loss $22.50 **

Citi is holding the high ground but earnings are next Friday. With 6-8 other financials reporting before Citi I am concerned that we could be stopped on volatility before they ever report. I raised the stop to $22.50 rather than give back any gains. I would rather exit flat and reenter again next week if everything still looks ok.

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 $147.14 -5.94 Apple Inc *** Covered LEAP Call ***

Apple gave back $7 on Friday and erased all the gains for the week. There was no specific news producing the decline and it appeared to be simply profit taking.

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 $115.85 -4.14 Research in Motion

RIMM was looking good going into Thursday's close but the market weakness and probably some expiring options activity knocked -4.83 off the price on Friday. It is still very close to a 3-month high set on April 3rd and a long way from the $80 level we suffered through in January.

I looked at closing the RIMM play because we are capped on the upside by the short LEAP. We adjusted down from the $150 leap when the stock dropped from $100 to $80. That gave us a $9.10 profit on the closed leap and let us get into the $110 leap for $18.30.

If we exit right now our profit is $13.90 because we have to buy back the $110 leap for more than we got for it.

If we continue holding the position until January and let it get called away your profit will be $34.80 when the stock is called away for $110. The difference is not having to buy back the $110 LEAP.

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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