RIMM - Research in Motion
Energy Play Updates
TS $21.03 +3.28 - Tenaris
No complaints here with TS closing at the high for the week. Tenaris recently said it was going to pay a dividend sometime after Nov-28th of $153 million. TS got a bounce from the news even though it only works out to 13-cents per share.
Breakdown trigger: $20, hit 11/19
Position: JUNE $25 Call TS-FE @ 4.80
SMG $32.36 +5.98 - Scotts Miracle Gro
A breakout to a new six-month high! Outstanding! Scotts is exploding on its opportunity to enter the private label fertilizer business. Spectrum Brands will cease its private label business by Jan-21st and leave a monster hole in the market. Scotts has entered into discussions with its biggest customers about producing branded fertilizer products for them as soon as 2009.
Breakdown trigger: $25, hit 11/21
Position: 2010 $30 LEAP Call WOF-AF @ $5.20
DWSN $20.57 +3.65 - Dawson Geophysical
DWSN had no specific news and traded with the market to a new two week high on Friday. There is no stop on DWSN because of the cheap option.
Breakdown trigger: $22.50, 11/06
Position: MAR $30 Call DVQ-CF @ $2.05
RIMM $42.47 -2.33 - Research In Motion *** Dropped ***
I really hate to drop RIMM but there is some really bad news circulating about the new BlackBerry Storm. The New York Times ran a scathing article on the Storm in Wednesday's edition. Given the weakness in tech stocks already I fear that the strong support at $40 may break. Link to article:
Breakout trigger: $46, hit 11/18
Position: 2010 $60 LEAP Call YKD-AW, $11.20, exit 8.30, -2.75
VIX 55.28 -17.39 - Volatility Index
That was a very nice drop in the Vix for the week and I am hoping the trend continues. If the bulls can continue the surge the next stop could be 40.
Position: JAN $50 PUT VIX-MJ @ $3.90