Option Investor
Play Updates

In Play Updates and Reviews

HAVING TROUBLE PRINTING?
Printer friendly version

HP $47.97 -$1.36 - Helmerich & Payne

Excellent bounce from support at $43 and just above our stop at $42. HP continues to get new build rig orders for horizontal rigs with Encana ordering 5 new rigs on 3-year contracts. Huge shale gas finds are adding to the backlogs from all rig builders.

Breakdown trigger: $52, hit 9/02

Position: 2010 $60 LEAP Call LQB-AL @ $9.10

********************

PCP $103.05 +4.91 - Precision Cast Parts

That is more like it! PCP rebounded strongly from the prior week's decline and is showing no weakness. PCP will be presenting at the Bank America conference on the 16th and I suspect it will be positive.

Breakout trigger: $105, Hit 9/02

Position: Jan 2010 $120 LEAP Call YAM-AD @ $14.90

********************

MOS $91.95 -$2.57 - Mosaic *** Stopped ***

Mosaic only lost -2.57 for the week but in the middle of the week was down $22 from the Monday high. We were stopped on the dip through $83. This market is simply too volatile to play until a trend emerges.

Breakdown trigger: $95, hit 9/04

Position:
Jan 2009 $120 LEAP Call LXW-AD @ $20.20, exit $18.80 9/08

********************

HES $92.28 +0.84 - Hess Corp

Hess skillfully evaded our stop at $78 and rebounded $12 to close the week almost exactly where it started.

Breakdown trigger: $95, hit 9/03, net debit $4.40

Long 2010 $100 LEAP Call WHS-AT @ $20.70
Short 2010 $90 LEAP Put WHS-MR @ $16.30

*******************

FTI $50.18 +1.30 - FMC Technologies

FTI rebounded +$7 from the Tuesday low to post a gain for the week. They should benefit from any repair work in the gulf.

Entry $48.88 9/07

Position: APR $55 Call FTI-DK @ $5.60

*******************

APC $56.89 -1.39 - Anadarko Petroleum *** Stopped ***

Anadarko lost $5 on the Tuesday gap lower and blew through our stop on no news. Evidently the $5 billion buyback news was quickly forgotten.

Stop at $55.

Breakdown trigger: $55, hit 8/04

Position: 2010 $70 LEAP Call YPC-AN @ $7.60, exit 4.86 9/09


****************************
Non-Energy Positions
****************************

XHB $21.26 +1.37 - S&P Homebuilder SPDR

The Fannie and Freddie takeover produced a strong opening gap on Monday and filled us near the high for the week. Fortunately the excitement about homebuilders held up for the rest of the week.

Entered: $21.80 (9/08)

Position: 2010 $25 LEAP Call KHG-AY @ $3.70

*******************

GS $154.21 -9.34 - Goldman Sachs - Combination play

Bank analyst Meredith Whitney started the week off wrong with a downgrade on GS earnings expectations and it just got worse from there. I think there were six downgrades for the week with every day just another chapter in the nightmare. The gap open on Monday had us entering at $171 and the downgrades knocked off $17 from that gap. Earnings are Tuesday and GS can go from zero to hero with a good report. Initial stop is now $148.

Entered at open: $171 9/08

Long 2010 $200 LEAP Call WSD-AT @ 21.45, net credit 0.55
Shrt 2010 $150 LEAP Put WSD-MG @ 22.00

***********************

AAPL $148.98 -11.24 Apple Computer *** Stopped ***

Thank you Apple. The new product event was lackluster and the stock was crushed.

Breakdown trigger: $160, Hit 9/05

Position: Jan 2009 $190 Call APV-AR @ $7.80, exit 4.10 9/11
 

Leaps Trader Update Archives