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Energy Play Updates

CHK $49.22 +0.93 - Chesapeake Energy

CHK beat the street by a penny when they announced earnings last week but surprised everyone with a $3.4 billion loss due to hedging. They said the unbelievable rise in gas prices over the last quarter decimated their hedging program. However, the drop in prices since the quarter ended produced a $4.7 billion profit to the company. CHK said if gas prices close the third quarter where they are today the loss would be reversed into a sizeable gain.

Breakdown trigger: $51 hit 7/22

Position: 2010 $60 LEAP Call WZY-AL @ $8.90


BTU $64.77 -1.67 - Peabody Energy

Basically no change for the week. BTU continues to hold at support of $65 as the other coal companies line up to report earnings.

Earnings July 23rd, more than doubled Q2-2007.

Breakout trigger: $68 hit 7/21

Position: 2010 $80 LEAP Call LLW-AP, $14.80


USO $101.04 +1.67 - US Oil Fund

Definitely looks like a bottom forming. No change in this short term play.

I am not using LEAPS because I view this as a short-term trade.

Breakdown trigger: $101, hit 7/23

Position: OCT $110 Call IYS-JF, $6.30


MOS $122.69 +0.64 - Mosaic Industries

MOS rocketed higher on Wednesday after reporting blowout earnings but fell victim to some post earnings depression on the market drop.

Breakdown trigger: $125 hit 7/08

Position: 2010 $160 LEAP Call KCA-AL @ $27.45


COP $81.15 -.83 - ConocoPhillips

No change as the sector waits for oil to pick a direction.

Earnings July 23rd, $3.50 per share

Position: 2010 $90 LEAP YRO-AR @ $11.35


ENER - $68.41 +5.54 Energy Conversion Devices

Best gainer for the week! Credit Suisse initiated coverage with a Buy. Definitely no complaints here.

Breakout trigger: $68.50 hit 6/16

Position: 2010 $80 LEAP Call KYU-AP @ 23.10


CRR $55.20 +3.47 - Carbo Ceramics

Positive earnings and positive news finally broke the deadlock. No complaints!

Breakout trigger: $48 Hit 5/12

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

Non-Energy Positions


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