Wednesday, March 17, 2010

Getting long



McDermott International, Inc. (MII) is a global engineering and construction company with specialty manufacturing and service capabilities. It provides a range of products and services to customers in the energy and power industries, including utilities and other power generators, major and national oil companies, and the United States Government. The Company operates in three business segments: Offshore Oil and Gas Construction, Government Operations, and Power Generation Systems. In December 2009, the Offshore Oil and Gas Construction segment completed a transaction with Oceanteam USA involving the acquisition of an approximate 50% interest in a vessel-owning company, which owns a subsea construction vessel and a 75% interest in another company, which intends to construct a similar vessel. In September 2009, MII’s subsidiary in the Power Generation Systems segment, B&W de Monterrey, acquired certain assets of Instrumentacion y Mantenimiento de Calderas, S.A.

Buy 5 May '10 26 calls @ 1.45

Entry: 25

Stop: 24.50

Target: 28.70

Risk:  265

Reward: 950



Guess?, Inc. (GUESS?) designs, markets, distributes and licenses lifestyle collections of contemporary apparel and accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities. The Company’s apparel is marketed under various trademarks, including GUESS, GUESS?, GUESS U.S.A., GUESS Jeans, GUESS? and Triangle Design, Question Mark and Triangle Design, a stylized G, GUESS Kids, Baby GUESS, YES, G by GUESS, GUESS by MARCIANO and MARCIANO. The lines include collections of denim and cotton clothing, including jeans, pants, skirts, dresses, shorts, blouses, jackets and knitwear. The Company's operates in four segments: retail, wholesale, European and licensing. During the fiscal year ended January 31, 2009,(fiscal 2009), 46.7% of the Company’s net revenue was generated from retail operations, 14.2% from wholesale operations, 34.3% from European operations and 4.8% from licensing operations. On January 16, 2008, the Company acquired BARN.

Buy 3 Apr '10 50 calls @ .70, Earnings today after the bell

Entry: 45.70

Stop: 45

Target: 50

Risk: 50

Reward: 510



Hess Corporation (Hess) is a global integrated energy company that operates in two segments, Exploration and Production (E&P) and Marketing and Refining (M&R). The E&P segment explores for, develops, produces, purchases, transports and sells crude oil and natural gas. These exploration and production activities take place principally in Algeria, Australia, Azerbaijan, Brazil, Colombia, Denmark, Egypt, Equatorial Guinea, Gabon, Ghana, Indonesia, Libya, Malaysia, Norway, Peru, Russia, Thailand, the United Kingdom and the United States. The M&R segment manufactures refined petroleum products and purchases, markets and trades, refined petroleum products, natural gas and electricity. The Company owns 50% of a refinery joint venture in the United States Virgin Islands. An additional refining facility, terminals and retail gasoline stations, most of which include convenience stores, are located on the East Coast of the United States.

Buy 3 Apr '10 65 Calls @ .99

Entry: 62.50

Stop: 61

Target: 66-69

Risk: 125

Reward: 475-1,100


This one does not meet my risk vs reward profile but I wanted to try it out. It is why I am only trading two of them.


  1. I also bought 5 SPY 111 puts as downside protection for $0.56 a contract.

  2. Okay so I am changing up my plan a little on the HES play. Based on my original plan I would had been stopped out when it dipped below 61. But looking at the 30 minute chart they were just wippy tales below this number. So on the dip I increased my size to 10 contracts and now have an average price of .75 per contract. I will exit on the first 30 minute bar that puts in a solid red bar below my 61 price level.

    I am using the gut on this one. My gut tells me it is not time to cut this one yet. Looking back at a lot of my trades these wippy movements down that just leave a tail without any solid candle stop me out only to see the position run. I want solid confirmation that it is time to get out. I am increasing my risk a little bit on the trade but I am still using a stop out level below 61, but I want to see a solid close below this level as confirmation to sell.