Monthly Cash Machine Newsletter, Wednesday, 07/27/2005 03:24:47 PM ET
New Bear-Call Spread- AVID
HAVING TROUBLE PRINTING?
AVID - $46 engages in the development, marketing, sale, and support of software and hardware for digital media production, management, and distribution worldwide. The company operates in two segments, Video and Film Editing and Effects (Video), and Audio
We are recommending the following Call credit spread to add to our current positions.
AVID $ 41.67
BUY AQI-HJ AVID August 50 CALL DEBIT = $ 0.10
SELL AQI-HI AVID August 45 CALL CREDIT= $ 0.40
NET CREDIT = $ 0.30
INITIAL "NET- CREDIT TARGET= $ 0.30 or $ 30.00
POTENTIAL PROFIT (x 5 CONTRACTS @ $ 0.30 = $ 150.00
MARGIN REQUIRE. (x 5 CONTRACTS $ 2,350.00
RETURN ON INVESTMENT= 6.38%
Exit Strategy= If NET DEBIT = $0.75 STOP