Monthly Cash Machine Newsletter, Thursday, 07/21/2005 02:02:09 PM ET
2 New Trades (OSX and TOL)
HAVING TROUBLE PRINTING?
In viewing today's recommendations will arre influenced by two economic realities
First,the housing market still appears strong and going on its merry way, and secondly, oil prices still hover above the $57 mark. With the housing market strong and oil prices still high and looking like prices will remain that way until at least after Labor day. We are looking to put on the following two (2) put credit spreads.
The Philadelphia Oil sector index - OSX and the recreational housing builder Tolls Brothers - TOL.
SELL OSZ-TH OSX August 140 PUT CREDIT= $0.90
BUY OSZ-TG OSX August 135 PUT DEBIT= $0.40
NET CREDIT = $0.50
INITIAL "NET- CREDIT TARGET= $0.50 or $50.00
POTENTIAL PROFIT (x 5 CONTRACTS @ $0.50 = $250.00
MARGIN REQ. (x 5 CONTRACTS $2,750.00
RETURN ON INVESTMENT= 9.09%
SELL TOL-TW TOL August 47.5 PUT CREDIT= $0.25
BUY TOL-TV TOL August 42.5 PUT DEBIT= $0.05
NET CREDIT = $0.20
INITIAL "NET- CREDIT TARGET= $0.20 or $20.00
POTENTIAL PROFIT (x 5 CONTRACTS @ $0.20 = $100.00
MARGIN REQ. (x 5 CONTRACTS $2,600.00
RETURN ON INVESTMENT= 3.85%