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3 New Positions, 1 Closed

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Here are 3 New Bull Put Spreads in the Energy Sector

VLO $ 83.35 Valero Energy


SELL VLO-TO VLO August 75 PUT CREDIT= $ 0.60
BUY VLO-TN VLO August 70 PUT DEBIT= $ 0.15
NET CREDIT = $ 0.45
INITIAL "NET- CREDIT TARGET= $ 0.45 or $ 45.00
POTENTIAL PROFIT (x 5 CONTRACTS @ $ 0.45 = $ 225.00
MARGIN REQ. (x 5 CONTRACTS $ 2,725.00
RETURN ON INVESTMENT= 8.26%
Stop Strategy: if NET DEBIT REACHES $1.00 STOP


FDG $ 101.58 Ford Canadian Coal Trust

SELL FDG-TR FDG August 90 PUT CREDIT= $ 0.45
BUY FDG-TQ FDG August 85 PUT DEBIT= $ 0.25
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%
Stop Strategy: If NET DEBIT REACHES $0.50 STOP

SUN $123.33

SELL SUN-TB SUN August 110 PUT CREDIT= $0.65
BUY SUN-TA SUN August 105 PUT DEBIT= $0.25
NET CREDIT = $0.40
INITIAL "NET- CREDIT TARGET= $0.40 or $40.00
POTENTIAL PROFIT (x 5 CONTRACTS @ $0.40 = $200.00
MARGIN REQ. (x 5 CONTRACTS $2,700.00
RETURN ON INVESTMENT= 7.41%
Exit Strategy= If NET DEBIT = $1.00 STOP

As ususal positions will be monitored for adjustments or possible close out.

Close Postion Summary


Lexmark - LXK close above $70 - CLOSING OUT CURRENT POSITION

Lexmark just penetrated resistance level of $70 with a close above $70, as per our last commentary we closed out our current position with a NET DEBIT of $1.95 or NET LOSS of $1.45 on the LXK close above $70..




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