LEH, WLT, WLL, COG, DVN, XEC, FDG, MMR and ISRG

GE earnings were lower then expectations and stock dropped down nearly 13%. This is the first time since 1987 that GE has failed the markets and this brought back vivid memories of BLACK MONDAY.

With G7 meeting this weekend, we have masters in session, as worried as we all are. $VIX index inched up as Dow fell 256.56 points, Nasdaq down 61.46 and S&P down 27.72. Monday morning will likely open lower and we go from there, as that will likely fill the last Gap in Indicies.

Stay awake this week as MER and C are due to deliver ( ugly ) results for the first quarter. As heard on Fast Money Friday, market will likely spare only one from LEH or MER in the coming days. Let us see how that pares out.

We have nine, yes 9, open trades at this time. We have however shunned the shorter term trades and gone with atleast 60 to 120 days time options as markets have not been kind and wild swings are the norm.

2008 Project Mercedes

Account Value: $ 9,624.90
Account Return for 2008: 92.58 %

OPEN TRADES::
LEH, WLT, WLL, COG, DVN, XEC, FDG, MMR, ISRG

------------------------------------------------------------------------
Trades since our last update are as under:

Trade # 40 Part LEH
Put July 10 Buy: $ 0.75 Sell: $ 0.90 Lots 8
Return:: 20 %

Trade # 45 SGP
Call Aug 12.50 Buy: $ 2.90 Sell: $ 3.60 Lots 2
Return:: 24 %

Trade # 46 MRK
Call Jul 37.50 Buy: $ 3.50 Sell: $ 4.00 Lots 2
Return:: 14 %

Trade # 47 SPY
Put Apr 136 Buy: $ 2.61 Sell: $ 2.24 Lots 2
Return:: ( = ) 14 %

Trade # 48 LNG
Call Jun 20 Buy: $ 2.20 Sell: $ 2.40 Lots 2
Return:: 9 %

Trade # 49 SPY
Put Jun 138 Buy: $ 6.35 Sell: $ 7.05 Lots 1
Return:: 11 %

Trade # 50 QID
Call Jul 46 Buy: $ 5.20 Sell: $ 5.40 Lots 1
Return:: 4 %

Trade # 51 DXD
Call Jul 53 Buy: $ 5.10 Sell: $ 5.50 Lots 1
Return:: 8 %

Trade # 57 AXP
Call Apr 42.50 Buy: $ 2.30 Sell: $ 2.60 Lots 2
Return:: 13 %

Trade # 59 APA
Put 120 May 120 Buy: $ 3.50 Sell: $ 4.20 Lots 1
Return:: 20 %

Markets are turbulent ahead. Play safe.

Harry

LEH, LNG, MRK, SGP, SPY, WLT, WLL

Stock Options is a great medium to enhamce and improve your capital base in tough financial environment that we are passing through. Noone exactly knows or understands the Derivative Stockpiles that world is piled on through the numerous world wide Bubbles.

George Soros, one of the greatest speculator, who made 1 Billion dollars overnight in his famous GBP trade has been so worried that he has come out with an e book on this current crisis, as he cannot wait for the real book to be published sometime in May 2008. That sure is something to think about.

Our 2008 Project Mercedes has been fruitful so far. If you would like to drive a brand new Mercedes Benz without spending any of your own money, feel free to e mail us and we will send you a complete article on how to do just that, with the help of stock options.

2008 Project Mercedes

Account Value: $ 9158.90
Account Return for 2008: 83.18 %

Open trades as of date: LEH, LNG, MRK, SGP, SPY, WLT, WLL
------------------------------------------------------------------------
Meanwhile, closed trades since our last trades update are as under:

Trade # 43 SPY
Call Jun 132 Buy: $ 6.95 Sell: $ 805 Lots 2
Return:: 16 %

Trade # 41 APA
Put May 120 Buy: $ 7.20 Sell: $ 8.10 Lots 2
Return:: 13 %

Trade # 39 WMT
Put Jun 55 Buy: $ 3.10 Sell: $ 3.50 Lots 3
Return:: 13 %

Trade # 38 NFLX
Put Jun 40 Buy: $ 5.80 Sell: $ 6.40 Lots 2
Return:: 10 %

Trade # 37 INSP
Put 11 Buy: $ 1.20 Sell: $ 1.15 Lots 2
Return:: ( - ) 4 %

Trade # 36 AAPL
Put Apr 140 Buy: $ 5.65 Sell: $ 6.00 Lots 2
Return:: 6 %

Trade # 35 AAPL
Put Apr 135 Buy: $ 3.60 Sell: $ 4.00 Lots 2
Return:: 11 %

Trade # 34 ALO
Put Jun 30 Buy: $ 4.00 Sell: $ 3.80 Lots 2
Return:: ( - ) 5 %

Trade # 33 PCP
Call Apr 100 Buy: $ 4.30 Sell: $ 4.55 Lots 2
Return:: 6 %

Trade # 32 GRMN
Call Apr 60 Buy: $ 3.30 Sell: $ 3.60 Lots 2
Return:: 9 %

Trade # 31 BG
Call Apr 90 Buy: $ 7.30 Sell: $ 8.20 Lots 1
Return:: 12 %

Trade # 30 AAPL
Call Apr 135 Buy: $ 4.45 Sell: $ 7.60 Lots 2
Return:: 71 %

Trade # 29 AAPL
Call Apr 130 Buy: $ 6.60 Sell: $ 10.80 Lots 2
Return:: 64 %

Trade # 28 FXE
Put Apr 157 Buy: $ 2.70 Sell: $ 3.00 Lots 2
Return:: 11 %

Trade # 19 SPY
Call Mar 135 Buy: $ 1.83 Sell: 1.24 Lots 14
Return:: ( - ) 32.25 %

Trade # 12 $OEX
Call Mar 645 Buy: $ 2.25 Sell Zero Lots 12
Return:: NIL... Expired Worthless

Markets : Volatility is down and good upswings all over. That spells CAUTION as we are getting closer to first target resistances.

We will return with further Market updates. Stay awake as it will surely get exciting with FED testimony coming two days and NON FARM numbers coming up this Friday.

Happy trading.

Harry