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USO $106.95 - Short *** Stopped ***

It was a quick play. It was triggered at the close on the 19th at $5.50 and closed when it hit the stop loss the next morning at $105.50. The option price when the stop was hit was $4.40 for a loss of $1.10.

July $100 Put IYS-SV @ $5.50, exit $4.40, -1.10

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FWLT $74.30 -5.30 Foster Wheeler

Profit taking on an ugly market. There was no news other than increased buying by Boone Pickens.

Breakout trigger: $71 Hit 5/13

Position: 2010 $80 LEAP Call LWM-AP @ $16.80

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PH $80.57 -4.43 - Parker Hannifin *** Stopped ***

PH declined on no additional news other than the bad market and their announcement of a debt sale the prior week. We were unlucky entering it just before the debt announcement and that turned the tables against us.

Breakout trigger: $85 Hit 5/13

Position: 2010 $90 LEAP Call LWU-AR @ $13.50, exit $10.50

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CRR $48.00 -1.02 - Carbo Ceramics

Carbo had no news and the same chart pattern as the broader market. After gaining $1.02 the prior week it gave exactly the same amount back.

Breakout trigger: $48 Hit 5/12

Position: Dec $50 Call CRR-LJ @ $5.80

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JEC $91.65 -4.80 Jacobs Engineering

JEC gave back half of last week's gains on no news. Boone Pickens disclosed he had 904,000 shares.

Breakout trigger: $90 Hit May 5th

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

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PBR $72.38 +1.73 Petrobras

Petrobras reported a new sub-salt find of light oil in the Santos Basin. It is still unclear if this is part of the larger Sugar Loaf/Carioca field in a single oil bearing structure or another deposit. Either way Petrobras can do no wrong in the exploration dept.

Bloomberg announced the prior 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 $62.87 -2.57 - Noble Corp

Noble declined $5 from the early week high on no news other than a half dozen puff pieces on why Noble is such a screaming buy right now.

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 $152.01 -8.53 - Transocean

That was really painful but we are still well above our stop at $145. Assuming the market finds some traction RIG should do fine. They are the biggest deepwater driller in a sector where day rates are literally going up daily.

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 $81.35 +2.35 - National Oilwell Varco

Nice gain for a bad week. Baker Hughes agreed to pay a unit of NOV $100 million to settle a patent suit on drill bits.

** 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 $130.11 +1.29 - Flowserve

Flowserve announced on Friday it had been selected to supply valves for two nuclear power plants in China that are being built by Westinghouse Electric. This caused a $5.60 gain for FLS on Friday.

** 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 $119.86 -9.80 Mosaic *** Stopped ***

Nothing but positive news but momentum stocks suffer the most in a weak market. MOS declined to our stop at $120 on Wednesday taking us out of the play.

** See portfolio listing for any stop loss **

Breakdown trigger: $120 Hit 4/29

Long: 2010 $140 LEAP Call LXW-AX @ $35.10, exit 29.78
Short: 2010 $240 LEAP Call KCA-AH @ $13.90, exit 11.50


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Covered LEAP Calls
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AAPL $181.17 -6.45 Apple Inc *** Covered LEAP Call ***

Not a fun week for Apple but no negative news. However, Import Spy reported Apple took delivery of 188 ocean containers each labeled as holding 44,000 units of "electric computers" and a designation Apple has not used before. Import Spy claims there has been no change in any of the order patterns for any of its existing computer products. Spy believes these were the new 3G iPhones they could announce any day.

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 $131.64 -8.72 Research in Motion

No specific news on RIMM but an Apple 3G iPhone announcement with immediate delivery could be ugly for RIMM on announcement day.

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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