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Energy Play Updates
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NOV $54.57 -5.52 National Oilwell Varco

NOV struggled with the sector last week despite a new outperform rating by Credit Suisse. There was no news other than the announcement of their earnings call on Oct 23rd.

No LEAPS

Breakdown trigger: $53, Hit 9/15

Position: FEB $60 Call NOV-BL @ $5.50

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NE $46.91 +0.03 - Noble Corp

Noble was doing a great job of holding its gains until Friday's drop knocked it back to zero for the week. Noble announced it was building a new 620 foot ultra deepwater drillship capable of drilling in water up to 10,000 feet deep. Noble said it was taking bids on three other ships and fully expected them to all be fully leased before they are completed in 2011/2012.

Breakdown trigger: $44, hit 9/15

Position: 2010 $50 LEAP Call YVJ-AJ @ $7.80

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PBR $46.56 -0.76 Petrobras

Petrobras announced another oil discovery off the coast of Brazil with recoverable oil estimated to be 150 million barrels. This is light oil in shallow water (900 feet) and under 6758 feet of soil. This is above the salt layer where Petrobras has made numerous discoveries over the last two years. This oil will be easier to produce and quicker to market.

Breakdown trigger: $40, hit 9/16

Position: 2010 $50 LEAP Call YMO-AJ @ $4.80

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FTK $12.28 -1.62 Flotek

Flotek said two of its facilities were shutdown as a result of the hurricanes and the evacuation. There was no material damage and once power was restored and evacuees returned to the area they would be reopened.

Breakdown trigger: $11, hit 9/15

Position: 2010 $15 LEAP Call YVB-AC $3.60

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MDR $28.37 -4.36 McDermott Intl

There was no material news on McDermott and market weakness appeared to be the only problem. Support is holding and UBS initiated a BUY rating.

Breakdown trigger: $27, hit 9/16

Position: 2010 $35 LEAP Call YAE-AG @ $4.90

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JEC $55.04 -9.37 Jacobs Engineering

Nothing but good news for JEC but the intraday dip on Friday hit our stop at $54.

Breakdown trigger: $60, hit 9/15

Position: 2010 $80 LEAP Call WEU-AP $6.80, exit $4.90 9/26

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FLR $55.51 -8.60 Fluor

Support at $54 holding but it was still a serious drop for the week. Nothing but good news and I still believe it is purely market related.

Breakdown trigger: $60, hit 9/15

Position: 2010 $70 LEAP Call LLF-AZ, @ $11.60


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Non-Energy Positions
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