Much ado about nothing week in the broad markets (see red circle below) but no so on the energy earnings front made good progress in combating lower commodity prices via improved mix and lower per unit operating costs in the quarter. Many of the gassy names have moved further into the lean mean fighting machine category and will show improved EBITDA lines as natural gas prices mount a growing recovery (see The Week That Was section in this coming Monday's post). We continue to be measured pace buyers in both gassy turnaround and oil growth names, especially on days like Wednesday and Thursday where Ben and Mario failed to come with what the market thinks it needs.
Close trades this past week:
- KOG – Sold the August $8 puts for $0.70, up 84%, on the mid and easily with the stock at $7.69. This trade essentially pays for the $7 strike puts that I will likely hold through their earnings announcement tomorrow.
- HK – Sold (15 of 30) HK August $7 calls for $0.60, up 100%, 0n the mid and easily with the stock at $7.60 after CEO Floyd Wilson spoke on CNBC about yesterday's operations update.
The wrap comments will be incorporated into the Monday post.
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