Option Investor
Play Updates

Energy stocks no longer falling?

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Dropped Plays

AAPL - Apple Inc ** Stopped **

Energy Play Updates

MDR $8.76 -0.87 - McDermott Intl

McDermott was flat on the week after that monster spike the prior week on the Savannah nuclear plant award. No complaints and no news.

Breakout trigger: $10.50, hit 12/17

Position: 2010 $12.50 LEAP Call YAE-AV @ $3.40

HLX $6.36 -0.21 - Helix Energy Solutions

No news, no move. No change in play.

Position: 2010 $10 LEAP Call WAI-AB @ $2.45

FXI $28.06 -2.49 - iShares China Index

Back to support at 28 (30 and 50-DMA) on economic worries over China. No change in play.

Breakout trigger: $29, hit 12/08

Position: 2010 $35 LEAP Call YOF-AI @ $5.10

DIG $26.16 -0.77 - Proshares Ultra Oil & Gas

DIG continues to perform better than I expected after that $10 drop in expiring January crude. No change in play.

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 $135.01 -5.67 - First Solar

+23 the prior week -5 this week. Definitely no complaints.

Covered Call position:

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

Put spread position:

Long 2010 $100 LEAP Put LQM-MT @ $32.90
Shrt 2010 $250 LEAP Put LZL-MJ @ $135.70, net credit $103

SMG $28.78 -.06 - Scotts Miracle Gro

Dead stop at $29. SMG came within ONE PENNY of our $27 stop on Monday but quickly recovered. Obama tapped a director of SMG to head the SBA. Stop remains $27.

Breakdown trigger: $25, hit 11/21

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

FLS $50.73 -1.32 - Flowserve

The big drop on Monday was nearly all recovered by Friday's close with a solid uptrend. No material news.

Breakdown trigger: $45, hit 12/1

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

Stock Positions

ESLR $2.81 -0.23 - Evergreen Solar

No change in play.

Evergreen was picked by RBC Capital as one of the top 20 stocks to benefit from the Obama infrastructure plan. Part of the plan is to make office buildings more energy efficient through upgrades to their energy handling and the addition of solar.

Too cheap for LEAPS, buy the stock instead.

Position: Stock in ESLR @ $2.75

CSIQ $5.99 -0.23 - Canadian Solar

No change in play.

Canadian not only supplies solar for commercial and residential applications but also sells those solar panels you see on the top of road signs, traffic lights, warning lights, etc. They are diversified and don't rely on only one product.

Stock too cheap for leaps, buy the stock.

Position: Stock in CSIQ @ $5.55

FTK $2.11 -$.19 Flotek

No news. No change in play.

Options on FTK cost nearly as much as the stock and time decay works against you. Just buy the stock. At $2 it is cheaper than any LEAP.

Position: Stock of FTK @ $3.01

CLNE $6.08 -.04 - Clean Energy Fuels

Trend still intact. 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 $4.00 -.13 - Cypress Semiconductor

No change in play.

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

Position: Stock in CY @ $4.11

BZH $1.31 -0.34 Beazer Homes

Close your eyes and hold your nose. BZH may be heading for a new level. 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 $34.97 -.43 Hewlett Packard

No specific news. Still holding support despite ugly tech news. No change in play.

Breakdown trigger: $33, hit 11/25

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

VIX 43.38 -1.55 - Volatility Index EXIT ALERT

I was going to exit today but the slim chance for another market gain on Monday on window dressing has me wanting to hold another day or two. Change the stop to 47 and exit at $40 or Tuesday's close, whichever comes first.

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

AAPL $85.81 -4.19 - Apple Inc ** Stopped **

We were stopped on Monday when AAPL gapped down to hit our $87 stop. No news about Steve Jobs health overshadowed the good news about Wal-Mart and iPhone sales.

Breakout trigger: $96, hit 12/03

Position: 2010 $120 LEAP Call WAA-AD $18.40, exit $9.75 12/22

UWM $18.71 -0.57 - ProShares Ultra Russell 2000 ETF

The Russell is trying to maintain its positive trend and I am still holding out hope there will be some window dressing into year-end. $20 seems to be the magic number for resistance.

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

POT $68.88 -3.38 - Potash

Despite the $3 drop the uptrend is still intact. Goldman expressed some caution about expected use of fertilizer in 2009 with farmers leaning toward cost savings rather than increasing yield. It is tough to understand why yield is not important since we added 150 million to the global population since Jan-1-2008.

Breakout trigger: $58, hit 12/09

Position: 2010 $80 LEAP Call WPT-AP @ $17.30

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