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Latest Trades in New Format

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These are the same trades we sent out yesterday, but with the added data to make them easier to follow. All future trades will include this information. If you think there is other information we should include just let us know.

International Business Machines IBM: NYSE $74.87

BUY CALL AUG-85.00 IBM-HQ ASK=$0.15
SELL CALL AUG-80.00 IBM-HP BID=$0.65

INITIAL "NET-CREDIT" TARGET = $0.50-$0.55
POTENTIAL PROFIT (X 5 contracts @ $0.50) = $250
MARGIN REQUIREMENT (X 5 contracts) = $2250
RETURN ON INVESTMENT (max) = 11.11%

Lexmark LXK: NYSE $64.30

BUY CALL AUG-75.00 LXK-HO ASK=$0.15
SELL CALL AUG-70.00 LXK-HN BID=$0.65

INITIAL "NET-CREDIT" TARGET = $0.50-$0.55
POTENTIAL PROFIT (X 5 contracts @ $0.50) = $250
MARGIN REQUIREMENT (X 5 contracts) = $2250
RETURN ON INVESTMENT (max) = 11.11%

Amazon AMZN: NASDAQ $32.91

BUY CALL AUG-25.00 ZQN-HV ASK=$0.05
SELL CALL AUG-30.00 ZQN-HG BID=$0.85

INITIAL "NET-CREDIT" TARGET = $0.80-$0.85
POTENTIAL PROFIT (X 5 contracts @ $0.80) = $400
MARGIN REQUIREMENT (X 5 contracts) = $2100
RETURN ON INVESTMENT (max) = 19.05%

U S G CP USG: NYSE $41.14

BUY CALL AUG-5.00 USG-HK ASK=$0.15
SELL CALL AUG-5.00 USG-HJ BID=$0.55

INTIAL "NET-CREDIT" TARGET = $0.40-$0.45
POTENTIAL PROFIT (X 5 contracts @ $0.40) = $200
MARGIN REQUIREMENT (X 5 contracts) = $2300
RETURN ON INVESTMENT (max) = 8.70%

Put Credit Spreads

Conservative/ Bullish Put Spreads

Occidental Petroleum OXY: NYSE $79.66

BUY PUT AUG-25.00 OXY-TM ASK=$0.20
SELL PUT AUG-70.00 OXY-TN BID=$0.45

INITIAL "NET-CREDIT" TARGET = $0.25-$0.30
POTENTIAL PROFIT (X 5 contracts @ $0.25) = $225
MARGIN REQUIREMENT (X 5 contracts) = $2275
RETURN ON INVESTMENT (max) = 9.89%

General Motors GM: NYSE $34.65

BUY CALL AUG-25.00 GM-TE ASK=$0.20
SELL CALL AUG-30.00 GM-TF BID=$0.55

INITIAL "NET-CREDIT" TARGET = $0.35-$0.40
POTENTIAL PROFIT (X 5 contracts @ $0.45) = $225
MARGIN REQUIREMENT (X 5 contracts) = $2275
RETURN ON INVESTMENT (max) = 9.89%

Broadcom BRCM: NASDAQ $36.10

BUY CALL AUG-25.00 RCQ-TE ASK=$0.10
SELL CALL AUG-32.50 RCQ-TZ BID=$0.65

INITIAL "NET-CREDIT" TARGET = $0.55-$0.60
POTENTIAL PROFIT (X 5 contracts @ $0.55) = $225
MARGIN REQUIREMENT (X 5 contracts) = $3525
RETURN ON INVESTMENT (max) = 6.00%

As usual any adjustments will be made if a position needs to adjustment or needs to be liquidated to take a loss

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