31
May

Wrap – Week Ended 5/29/09

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Holdings Watch:

  • $10KP - $33,500 / 61% Cash
  • Holdings Watch Comments: Another good week for the energy groups. I’ve been adding calls into market and sector weakness for the last two weeks in the wake of 1Q earnings. I’m now thinking of taking a few chips off the table into near term rallies. Remember that June is one of the rare expiration months where you get five weeks in between options expirations so the front month contracts still have 3 weeks of life left after this week.
  • Closed trades for the week:

    • Sold the SWN June $40 calls for $4.10, up 56%, felt extended, will buy it back lower later. Natural gas not holding the $4 level well after the release of March supply data.
    • Sold the 5 EOG $70 calls for $4.60, up 111%. This amount of profit essentially makes the $80s I still hold into next week a free ride.

    • Sold the PXD $25 June calls for $3.40, up 53%. I have enough higher strike leverage here going into the coming week as we anticipate operational news.


Other Notes:

  1. I'll have the natural gas slide show out in the Monday post but in a nutshell, the EIA natural gas monthly released on Friday didn't wow me or gas traders.
  2. Shipping rates are on a tear, up 50% in the last week and over 600% year to date for the Capesize ships and I'd expect similar moves for smaller dry bulks . The stocks are starting to turn up and anecdotal evidence points to a little improvement in traffic. More on this later this week.

5 Responses to “Wrap – Week Ended 5/29/09”

  1. 1
    nifkin Says:

    RBC Capital Mkts. Global Energy Conf
    NYC
    8:05 AM EQT HAL REXX TDW
    8:30 AM ACPW AES GOK HK
    9:40 AM BJS EGY OIS PRE WMB
    10:15 AM ARD AS ATN PTEN
    10:50 AM BKH CRZO TLM WEL WLL
    11:25 AM CHK CLR DUK
    1:45 PM BEXP CPN EVEP PEP
    2:20 PM CGV PBR SWN TTES UDRL
    2:55 PM DNR ECA GTE.CN WRES
    3:03 PM CNX KOG LINE UPL
    4:05 PM ALY NGAS RRCM XTO
    4:40 PM GLF PETD RDC SII
    02-Jun-09
    8:30 AM ELON ENP NVE SWSI
    9:05 AM BGC BTU CXO ESE ORA
    9:40 AM ACI BBEP ME NOV SE
    10:15 AM APC FTI OII PLUG UTL
    10:50 AM AXC.CN PNM SD SFY
    11:25 AM DYN FST HTM RIG TLW.LN
    1:10 PM CNE NE NOG OYOG
    1:45 PM BHI GDP LNG NKO.CN WTI
    2:20 PM COMV KWK NXY RAME RZ
    2:55 PM ITRI PXD TCW TTI

  2. 2
    zman Says:

    Thanks much Nifkin. Looks like slides only for these, no webcasts from that conference, right?

  3. 3
    choices Says:

    Article on HK:

    http://seekingalpha.com/article/140410-petrohawk-looks-good-for-an-anticipated-energy-bull-run

  4. 4
    mimster90 Says:

    HKFE what is the short term catalyst? Would you be buying them again right here?

  5. 5
    zman Says:

    Mim – HK is high beta to the group, which is inching higher after a long winter so to speak. As far as catalysts go, none in the very near term to really jump out and grab the stock. More like lack of anti-catalysts in the form of deals being done by others whereas HK has already done their deals for the near term. Valuation is a bit stretched if you think gas prices stay low for an extended period but they are well hedged. Sometime before the 2Q call in July I would put even odds on an operations update. Look for more solid Haynesville and big well Eagle Ford news there.

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