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2 New Positions

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Slight weakness in the Dow because of GM's missed earnings target caused a small retreat in the overall sentiment of the market. However, a strong upbeat annoucement from AAPL regarding a 70% increase in sales due to Ipod and the continuing strength of the housing and construction industries, will give us an opportunity with the following plays.

We are recommending the following two (2) put credit spreads


FAST 63.91
Buy FQATK Aug 55 P Debit $0.20
Sell FQATL Aug 60 P Credit $0.60
NET CREDIT $0.45 credit
INITIAL "NET-CREDIT" TARGET = $0.40-$0.50
POTENTIAL PROFIT (X 5 contracts @ $0.45) = $225
MARGIN REQUIREMENT (X 5 contracts) = $2275
RETURN ON INVESTMENT (max) = 9.89%

AAPL 43.19
Buy AAQTU Aug 37.5 Put Debit $0.15
Sell AAQTH Aug 40 Put Credit $0.45
NET CREDIT $0.30 credit
INITIAL "NET-CREDIT" TARGET = $0.30-$0.35
POTENTIAL PROFIT (X 5 contracts @ $0.25) = $150
MARGIN REQUIREMENT (X 5 contracts) = $2350
RETURN ON INVESTMENT (max) = 6.38%

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