The LEAPS Trader
105 W. Monument Street
Baltimore, MD 21201
Thursday, March 29, 2007
Email – # 361
** Lapping It Up
Insiders at two of our positions having been sucking up stock on the open market to the tunes of millions. On our profitable Freeport (NYSE: FCX) bull spread, insiders just registered buys of more than 50,000 and 200,000 shares respectively at prices of between $62 and $64.
Chesapeake Energy (NYSE: CHK) insiders, including the CEO Aubrey McClendon, purchased more than 200,000 shares, the first major buy in months. Natural Gas prices have also been rising on forecasts of a stronger than normal hurricane season for the Gulf of Mexico.
Chesapeake’s strong earnings and fundamentals are enough to drive prices above $35 in upcoming quarters, but if we do have a strong hurricane season, our hurricane “play” could be trading back to old highs at the $40 levels.
I will be on the road for few days researching opportunities in Europe’s lesser-known markets. I will be back in touch with you next week… sooner if the situation warrants.
Current Portfolio:
Company / Symbol: General Motors (NYSE: GM)
Option / Symbol: Jan. 08 $27.50 put (WGM MY)
Date Purchased: 3/13/07
Current Price: $2.60
Comment: Hold.
Company / Symbol: Nasdaq 100 Index (Nasdaq: QQQQ)
Option / Symbol: Jan. 08 $40 put (WD MN)
Date Purchased: 11/27/06
Current Price: $1.22
Comment: Hold.
Company / Symbol: Nasdaq 100 Index (Nasdaq: QQQQ)
Option / Symbol: Jan. 08 $48 call (YWZ AV)
Date Purchased: 11/27/06
Current Price: $1.56
Comment: Hold.
Company / Symbol: Microsoft (Nasdaq: MSFT)
Option / Symbol: Jan. 08 $30 call (WMF AF)
Date Purchased: 8/8/05
Current Price: $1.40
Comment: Hold.
Company / Symbol: S&P 500 MITT (AMEX: MCP)
Date Purchased: 7/18/03
Current Price: $12.60
Comment: Hold.
Company / Symbol: Chesapeake Energy (NYSE: CHK)
Option / Symbol: Jan. 08 $35 call (WZY AG)
Date Purchased: 4/25/06
Current Price: $1.59
Comment: Hold.
Company / Symbol: Advance Micro Devices (NYSE: AMD)
Option / Symbol: Jan. 09 $35 call (VVV AG)
Date Purchased: 6/21/06
Current Price: $0.31
Comment: Hold.
Bull & Bear Spreads
Company / Symbol: Freeport (NYSE: FCX)
Option / Symbol: Jan. 09 $60 call (OMT AL)
Date Purchased: 3/5/07
Current Price: $15.80
Comment: Hold
Company / Symbol: Freeport (NYSE: FCX)
Option / Symbol: Jan. 09 $70 call (OMT AN)
Date Purchased: 3/5/07
Current Price: $11.60
Comment: Hold. Sold call against Jan. 09 $60 position.
Company / Symbol: GoldCorp (NYSE: GG)
Option / Symbol: Jan. 09 $30 call (OPJ AF)
Date Purchased: 6/9/06
Current Price: $3.80
Comment: Hold.
Company / Symbol: GoldCorp (NYSE: GG)
Option / Symbol: Jan. 09 $40 call (OPJ AH)
Date Purchased: 6/9/06
Current Price: $1.65
Comment: Hold. Sold call against January 09 $30 position.
Company / Symbol: Teva Pharmaceutical (Nasdaq: TEVA)
Option / Symbol: Jan. 08 $40 call (WTX AH)
Date Purchased: 5/23/06
Current Price: $2.45
Comment: Hold.
Company / Symbol: Teva Pharmaceutical (Nasdaq: TEVA)
Option / Symbol: Jan. 08 $45 call (WTX AI)
Date Purchased: 5/23/06
Current Price: $0.95
Comment: Hold. Sold call against January 08 $40 position.
