Wrap – Week Ended 05/16/08


This Week's Closed Trades Watch:

  • Sold the PQ May $22.50 calls taken mid April for a 43% gain
  • sold the PBR May $65 calls taken mid April for a 80% gain
  • Sold the HAL May $45 calls taken mid April in two lots for 106% gain
  • Sold the CLR June $50 Calls taken 4/21 for a 197% gain
  • Sold the PQ May $20 calls taken early April for a 76% gain
  • Sold the EOG June $140 calls taken at the end of April for a 33% gain
  • Sold the HK June $25 calls taken 4/21 for a 96% gain
  • Sold the NBR June $37.50 calls taken in two lots mid April for a 111% gain
  • Sold the COP May $90 calls taken in two lots in early May for a 72% loss
  • Sold the PBR May $70 calls taken 5/13 for a 52% loss
  • NFX May $65 calls expired worthless
  • TSO May $30 calls expired worthless
  • UNG $49 and $47 puts expired worthless


The Holdings Wiki tab (subscribers only) has been updated.

1) Energy Outperforms The Broad Market. Again and again and again. And if you look at the price of oil and natural gas last week, up less than a percent and down 4% respectively, you'll see that the groups were led not by the commodities themselves but by the simple fact that the market is starting to pick up on the fact that they are cheap. Note the XOI, which is loaded with integrated oils, took the pole position this past week. Energy analysts are again pushing the refining bottom fish buzzer.  Note also that oil service is starting to play catch up to the other energy names but remains cheap to the broad market on a forward multiple. We have been increasing our exposure to service. 

2) Expanding Rig Count Portion To Encompass More of the North American Oil & Gas Drilling Picture. New High For Horizontal Rigs and Oil - Directed Rigs / Gas Rig Count Still High But Flattish But Will Improve Send Half As Per E&P Plans. Three takeaways are:

...these comments are included in the Monday post.

Have A Great Weekend! 



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