Monthly Cash Machine Newsletter, Sunday, 09/11/2005 05:18:56 PM ET
INITIAL RECOMMENDED PLAYS FOR OCTOBER
by Steve Gail
HAVING TROUBLE PRINTING?
OCTOBER INITIAL RECOMMENDATIONS
The following are our initial spread recommendations for the October Expiration series
FDG (Fording Canadian Coal Trust)
operates as an open-ended mutual fund.
It invests in metallurgical coal, industrial minerals mining, and processing operations.
The Trust, through its wholly-owned subsidiary, Fording, Inc., holds a
60% ownership of Elk Valley Coal Partnership and is the producer of the
industrial mineral wollastonite.
USG (USG Corporation)
through its subsidiaries, engages in the manufacture and
distribution of building materials. The company operates in three segments:
North American Gypsum, Worldwide Ceilings, and Building Products Distribution.
North American Gypsum segment manufactures and markets gypsum wallboards,
cement boards, and fiber panels primarily in the
United States, Canada, and Mexico.
ASEI (American Science and Engineering, Inc.)
engages in the development, manufacture, marketing, and sale of inspection systems.
Its products are used for detection and security applications by seaport and border
authorities, federal facilities, military bases, airports, and corporations worldwide.
BTU (Peabody Energy Corporation)
operates as the private sector coal company worldwide. It also markets, brokerages,
and trades coal. The company's energy related businesses include the development
of mine-mouth coal-fueled generating plants; and management of coal reserve and real
estate holdings, coalbed methane production, and transportation services
The orders below are Good-Till-Cancelled orders or until we decide that we can not be filled and inform you to straight cancel the trade. We will monitor only trades on our "recommended trade list", alhtough we will be giving you "A Supplemental trade list from time to time during the month of additional trades that you might want to consider based upon yur own risk tolerance and interest
Here are our initial Recommendations for the October expiration
SELL FDG-VD FDG OCT 120.0 120 PUT CREDIT = $2.60
BUY FDG-VC FDG OCT 115.0 115 PUT DEBIT = $1.60
NET CREDIT = $1.00
INITIAL "NET- CREDIT TARGET= $1.00 or $100.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $1.00 = $1,000.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,000.00
RETURN ON INVESTMENT= 25.00%
EXIT Strategy IF NET DEBIT = $2.50
SELL USG-VK USG OCT 55.0 55 PUT CREDIT = $1.00
BUY USG-VR USG OCT 47.5 47.5 PUT DEBIT = $0.40
NET CREDIT = $0.60
INITIAL "NET- CREDIT TARGET= $0.60 or $60.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.60 = $600.00
MARGIN REQUIRE. (x 10 CONTRACTS $6,900.00
RETURN ON INVESTMENT= 8.70%
EXIT Strategy IF NET DEBIT = $1.50
SELL KBU-VK ASEI OCT 55.0 55 PUT CREDIT = $1.00
BUY KBU-VJ ASEI OCT 50.0 50 PUT DEBIT = $0.60
NET CREDIT = $0.40
INITIAL "NET- CREDIT TARGET= $0.40 or $40.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.40 = $400.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,600.00
RETURN ON INVESTMENT= 8.70%
EXIT Strategy IF NET DEBIT = $1.00
SELL BTU-VM BTU OCT 65.0 65 PUT CREDIT = $0.75
BUY BTU-VL BTU OCT 60.0 60 PUT DEBIT = $0.30
NET CREDIT = $0.45
INITIAL "NET- CREDIT TARGET= $0.45 or $45.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.45 = $450.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,550.00
RETURN ON INVESTMENT= 9.89%
EXIT Strategy IF NET DEBIT = $1.15
We will be adding several additional plays early this week to our "recommended list"
and will be also sending out "supplemental plays"during the month as well.
Finally, we will be keeping you informed of athose additions to the Recommended List as well as any changes that we might need to make to our current recommended list, when and if it becomes necessary.