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Play Updates

Positive Trend Developing

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Dropped Plays


DWSN - Dawson Geophysical - Dropped


Energy Play Updates


DIG $29.76 +4.10 - Proshares Ultra Oil & Gas

Crude rose ahead of the OPEC meeting next Wednesday and expectations are for them to cut 1.5 mbpd.

Company Info:

Ultra Oil & Gas ProShares seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of the Dow Jones U.S. Oil & Gas Index.

Breakdown trigger: $30, hit 12/1

Position: MAR $35 Call DPB-CG $5.40


FSLR $116.92 -$11.62 - First Solar

That was the wrong week to initiate a play on FSLR. After gapping open on Monday to nearly $140 it crashed back to earth and support at $115. There was o specific news. The Nasdaq announced after the close on Friday that FSLR would be added to the Nasdaq-100 and that should provide lift next week.

Covered Call position:

Buy 100 Shares FSLR currently $128
Sell 2010 $150 LEAP Call LZL-AA currently $40.70
Profit if called is $40.70 in premium + $22 in stock (49%)

Put spread position:

Buy 2010 $100 LEAP Put LQM-MT currently $32.90
Sell 2010 $250 LEAP Put LZL-MJ currently $135.70, net credit $103


SMG $29.06 -1.13 - Scotts Miracle Gro

SMG lost all its ground on the Thursday market crash and did not rebound strongly on Friday. The former chairman and CEO from 1996-2001 died after a long illness. He had nothing to do with the current company but the news may have weighed on prices.

Breakdown trigger: $25, hit 11/21

Position: 2010 $30 LEAP Call WOF-AF @ $5.20


DWSN $15.13 -1.53 - Dawson Geophysical Dropped

DWSN broke support and hit new 52-week lows. Time to kick it to the curb.

Breakdown trigger: $22.50, 11/06

Position: MAR $30 Call DVQ-CF @ $2.05, exit 12/14 -0-


FLS $52.03 +8.90 - Flowserve

A new five-week high for Flowserve. Coverage was initiated by the Maxim Group with a BUY.

Breakdown trigger: $45, hit 12/1

Position: April $55 Call FGV-DK (no leaps) $5.33


Stock Positions


FTK $3.05 +$.62 Flotek

The beauty in a cheap stock is the leverage. The +62 cent move was a +25% jump. FTK closed near a new four-week high.

Options on FTK cost nearly as much as the stock and time decay works against you. Just buy the stock. At $3 it is cheaper than any LEAP.

Position: Stock of FTK @ $3.01


CLNE $4.84 -0.05 - Clean Energy Fuels

CLNE moved over $1 intraweek but ended with no change. Just waiting on Obama. No change in play

Clean Energy is the leading provider of natural gas (CNG and LNG) for transportation in North America. It has a broad customer base in the refuse, transit, ports, shuttle, taxi, trucking, airport and municipal fleet markets, fueling more than 14,000 vehicles daily at over 170 strategic locations across the United States and Canada. With the sudden surplus of natural gas it will be easier to convince companies to switch to the cleaner, cheaper fuel. The Clean Truck Program at California's ports is planning to switch out 8,000 diesel trucks for Nat Gas trucks over the next five years. This is just one program and CLNE has a major jump on everyone else.

Options on CLNE cost nearly as much as the stock and time decay works against you. Just buy the stock. At $5 it is cheaper than any LEAP.

Position: Stock of CLNE @ $4.84


CY $4.71 +0.60 - Cypress Semiconductor

Chip stocks were hot and CY closed near the high for the week. No change in play.

Options don't make sense on a $4 stock.

Position: Stock in CY @ $4.11


BZH $1.70 -0.45 Beazer Homes

No change in play.

The stock price is so cheap that options don't make sense.

Position: STOCK in BZH @ $2.15


Non-Energy Positions


HPQ $35.97 +$2.44 Hewlett Packard

HP is back knocking on the breakout door at $36 and tested that resistance level three times last week. No change in play.

Breakdown trigger: $33, hit 11/25

Position: 2010 $40 LEAP Call WPW-AH @ $5.60


VIX 54.28 -5.65 - Volatility Index

The VIX closed at nearly a five-week low and volatility is evaporating as each day passes. Extremely bad news has been unable to push it higher suggesting the worst is over. If the VIX breaks below 50 it could go to 30 very quickly with bullish holiday sentiment. Maintain the stop at 70.

Position: JAN $50 PUT VIX-MJ @ $3.90


AAPL $98.27 +4.27 - Apple Inc

Back over 100 again twice last week and a strong rebound on Friday. Apple's got it, RIMM lost it. Expect Apple to rise through year-end on strong iPhone sales.

Breakout trigger: $96, hit 12/03

Position: 2010 $120 LEAP Call WAA-AD $18.40


UWM $18.05 +0.65 - ProShares Ultra Russell 2000 ETF

I feel like we are pushing a rope on the Russell. It has a couple of great days of gains and then bleeds for three days a week. We need the UWM to move over resistance at $20 to signify a breakout.

Company Info:

Ultra Russell2000 ProShares seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of the Russell 2000 Index

Breakdown trigger: $16, hit 12/1

Position: April $25 Call ULX-DY $2.55

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