Time to Fill Up on Hess

Tuesday Buy-Write � Hess Corp. (NYSE: HES)

TRADE COMMENTARY:

Hess Corp. (NYSE: HES) falls under the basic materials, sub-sector Oil & Energy, operating in the exploration and refining of crude oil.

As the markets find their flooring options trading investors need to circle the wagons and get closer to home. We think we need to make best in class investments and invest in things people really need and not things they want. No matter how bad things get, we all need to eat and drive our cars. Energy stocks have had a down move (along with the rest of the market) but we think that any move back in demand, jobs, and production will benefit energy producers first before it trickles down to other no basic sectors such as luxury, or consumer technology.

HES is in a good spot to at least hold steady while the market figures out the euro-zone debt crisis during the summer trading markets, which are choppy, low volume and unpredictable.

As the market rises, everyone is looking to be a stock owner at a low price. As the market declines, no one wants to own anything. If we have to be n the game of buying stocks, right now we like HES. Our call-away premium is decent and we are in a secure industry. Again, in these markets, know your maximum loss potential, be prepared to own the stocks you like at lower prices — as in this case if the stock moves lower and you are not called-away on it — and continue to keep abreast of the markets and sentiments.

BUY-WRITE TEMPLATE

DATE:����������������������� June 14, 2011

STOCK/INDEX:������ HES

STOCK PRICE:�������� $71.70

OPTION PLAY:����� � Covered Call (Buy-Write)

BUY/STRIKE/MONTH/PRICE:����� 100 Shares at 71.70

SELL/STRIKE/MONTH/PRICE:���� 1 August 20, 2011 75 Strike @ $2.70

NET COST:���� 71.70 � 2.70 = $ 69.00 per Contract = (71.70 x 100) � (2.70 x 100) = $69,000

STOCK COST BASIS

BREAKEVEN:���� 71.70 � 2.70 = $69.00

MAX PROFIT:���� (75 strike + Premium received 2.70) = 77.70

$77.70 – $71.60 purchase price = $6.10

MAX LOSS:���� 71.70 � 2.70 = $69

CALL AWAY % RETURN:���� 6.1/ 71.7 = 0.085 Return or 8.5% at expiration

** Always remember, one option contract is equal to 100 shares of stock.

Stutland Equities is a premier futures and options trading company on the Chicago Board Options Exchange. Founded in 2005 and headquartered in Chicago, Stutland Equities specializes in volatility arbitrage across multiple asset classes.