This March Alaska’s Senate passed legislation to cut taxes on oil production. The bill is expected to pass and be signed by their Governor Sean Parnell. ConocoPhillip is Alaska’s largest oil and gas producer and will be the biggest beneficiary when the bill passes. ConocoPhillips is expected to expand its exploratory drilling in arctic Alaska next year. ConocoPhillips is investing $2.5 billion in Alaska over the next five years on innovative technologies with the aim of reversing its declining production there.

My Trade: Buying the COP May 62.5 Calls for $.52
Risk: $52 per 1 lot
Reward: Unlimited
Breakeven: $63.02

Greeks of this Trade:
Delta: Long
Gamma: Long
Vega: Long
Theta: Short

—
Andrew Keene
President/Founder
Andrew@KeeneOnTheMarket.com

Paper bought 1000 GSM June 12.5 Puts for $.35 (2.6 times usual volume) when stock was trading $14.15
Paper bought 5000 PGNX May 4 Puts for $.10 when stock was trading (11.1 times usual volume) when stock was trading $5.10
Paper bought 12,398 LYB May 12 Puts for $.70 (19.1 times usual volume) when stock was trading $12.17
Paper bought 2941 CRIS June 2.5 Puts for $.18 (2941 times usual volume) when stock was trading $3.40
Paper bought 500 EPB June 40 Puts for $.65 (11.0 times usual volume) when stock was trading $43.12

Paper bought 1000 LXP Nov 12.5 Calls for $.60 (18.4 times usual volume) when stock was trading $11.84
Paper bought 500 PIP Sep 5 Calls for $.10 (3.6 times usual volume) when stock was trading $1.77
Paper bought 500 CLMS Aug 12.5 Calls for $.625 (123 times usual volume) when stock was trading $.625
Paper bought 1500 PDH June 17.5 Calls for $.25 (3.0 times usual volume) when stock was trading $14.57
Paper bought 2000 ARIA May 21 Calls for $.55 (3.4 times usual volume) when stock was trading $18.88

Paper bought 1000 LGF June 24 Calls for $.775 when stock was trading $22.62
Paper bought 2151 AEO May 20 Calls for $.425 (2.5 times usual volume) when stock was trading $18.85
Paper sold 1178 FB Jan 2014 25 Puts for $3.25 when stock was trading $25.14
Paper bought 3169 DNDN and Sold 3169 DNDN Aug 4 Puts for $.02 credit when stock was trading $4.76
Paper bought 7000 GOL April 7.5 Straddles for $1.75 (7.8 times usual volume) when stock was trading $5.87

Despite its current challenges with approval the companies potential future growth outweigh the current risk. 

Paper is short 70,000 DNDN Aug 5 Puts for $0.72.  These Puts are worth $.98, so that trader has paper losses of:

70,000 * 100 * (-0.26)= $1.82 Million in losses, however, the trade is not over yet.

My Trade: Buying the DNDN Aug 5 Calls for $0.72
Risk: $72 per a lot
Reward: Unlimited
Breakeven: $5.72

Greeks of this Trade:
Delta: Long
Gamma: Long
Vega: Long
Theta: Short

—
Andrew Keene
President/Founder
Andrew@KeeneOnTheMarket.com

salerno.mark.a@gmail.com