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JEC $96.45 +9.69 Jacobs Engineering

Another Fluor winner. No other news besides the FLR earnings.

Breakout trigger: $90 Hit May 5th

Position: 2010 $100 LEAP Call WEU-AT @ $16

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PBR $70.65 +6.05 Petrobras

Petrobras reported a 68% rise in Q1 profits on Monday that totaled $4.1 billion. Profits were 37% above the prior quarter. Petrobras is a company that is doing everything right. Profits would have been a lot higher were it not for price controls on fuel inside Brazil. As those controls are raised so will Petrobras profit move higher.

Bloomberg announced last week that Petrobras had contracts to lease 80% of the world's deepest sea drilling rigs. Petrobras is contracting drillships that can drill in 10,000 feet of water. According to Rigzone there are only 21 such vessels. Petrobras as already signed 5-year contracts on six rigs at rates of $410,000 to $580,000 per day. Petrobras is also negotiating for as many as 17 more with most of those being new construction. Daily drilling rates are running $600,000 per day for those ships. Petrobras now controls seven times more capacity for drilling over 7500 feet of water than the next largest holder. Analysts expect other oil companies to be forced to pay as much as $50,000 per day more than Petrobras rates to contract any remaining rigs.

** See portfolio listing for any stop loss **

Breakout trigger: $125.50 hit 4/28

Position: 2010 $150 LEAP Call YMO-AV @ $22.10

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NE $65.44 +2.82 - Noble Corp

No news but Friday's close was a new historic high!

Noble recently won a $4 billion contract to drill for Petrobras off the coast of Brazil. This is a monster payday and just one area of exploration for Noble.

** See portfolio listing for any stop loss **

Breakdown trigger $56.00 hit 4/29

Position: 2010 $70 LEAP Call YVJ-AN @ $8.10

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RIG $160.54 +6.88 - Transocean

Nice recovery after the $15 dip the prior week. RIG is back at new high resistance at $160 after multiple upgrades last week.

RIG is the premier deep-water driller and there is no scenario where they don't continue to move higher.

** See portfolio listing for any stop loss **

Breakdown trigger: $150 Hit 4/29

Position:
Long 2010 $170 LEAP Call YDR-AN @ $24.00
Shrt 2010 $230 LEAP Call YDR-AW @ $8.50

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NOV $79.00 +1.59 - National Oilwell Varco

A new 7-month high on Friday on no news. It is great to be an oil service company today.

** See portfolio listing for any stop loss **

Breakdown trigger: $67 Hit 4/30

Position: NOV $80 Call NOV-KP @ $5.40

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FLS $128.92 +7.56 - Flowserve

A new historic high at Friday's close on no news. Love that momentum!

** See portfolio listing for any stop loss **

Breakout trigger: $110 Hit 4/16

Position: OCT $120 Call FLS-JD @ $10.40


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Non-Energy Positions
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MOS $129.66 +3.24 Mosaic

The passage of a new farm bill with enough votes to be veto proof helped send the fertilizer stocks higher. MOS is knocking on resistance at $130 and next week could be the breakout week.

** See portfolio listing for any stop loss **

Breakdown trigger: $120 Hit 4/29

Long: 2010 $140 LEAP Call LXW-AX @ $35.10
Short: 2010 $240 LEAP Call KCA-AH @ $13.90

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EBAY $31.24 - Ebay Inc *** Expired ***

We lost our buck on this play. EBAY declined to $30 after earnings but just would not move any lower.

Entry 4/14 @ 30.87

Position: May $30 PUT XBA-QF @ $1.10


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Covered LEAP Calls
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AAPL $187.82 +4.17 Apple Inc *** Covered LEAP Call ***

Could it be that Apple is about to top? $190 is beginning to look like resistance.

No change. Over $150 we are at max profits.

Position:
Long: AAPL @ open of $177.52 (Jan-14th open)
Short: 2009 $150 LEAP Call VAA-AW (APV-AJ) @ $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 $140.36 +7.59 Research in Motion

Two new BlackBerry announcements within a week of each other? Definitely an embarrassment of riches.

No change. We are at max profits over $110.

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.

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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