Option Investor
Newsletter

2 ADDITIONS TO THE RECOMMENDATION LIST

HAVING TROUBLE PRINTING?
Printer friendly version

TWO NEW RECOMMENDATIONS TO BE ADDED TO OUR LIST
BRINGING OUT TOTAL SPREAD RECOMMENDATIONS TO TEN (10).

ONE (1) CALL SPREAD and ONE (1) PUT SPREAD


SHLD - (Sears Holdings Corporation,)
through its subsidiaries, operates
as a retailer in the United States. It offers home appliances, tools,
lawn and garden products, home electronics, and automotive repair and
maintenance products. The company offers its products through a
portfolio of brands, including Kenmore, Craftsman and DieHard, Lands'
End, Jaclyn Smith, Martha Stewart Everyday, and Joe Boxer, as
well as the Apostrophe and Covington. As of March 28, 2005,
the company operated 3,800 full-line and specialty retail stores
in the United States and Canada. Sears Holdings is headquartered
in Hoffman Estates, Illinois.

CLF - (Cleveland-Cliffs, Inc.)
produces iron ore pellets in North
America. The company manages and owns interests in North American
mines; and owns ancillary companies, providing transportation and
other services to the mines. It operates six iron ore mines located
in Michigan, Minnesota, and eastern Canada. The company manufactures
13 grades of iron ore pellets, including standard, fluxed, and high
manganese, for use in its customer's blast furnaces as part of the
steel making process. It sells its pellets to integrated steel
companies in the United States and Canada. Cleveland-Cliffs was
founded in 1847 and is headquartered in Cleveland, Ohio.

We are recommending the following credit spreads


CALL CREDIT SPREADS


SHLD $121.00

BUY KTQ-JW SHLD OCTOBER 140 .85 CALL DEBIT = $0.85
SELL KTQ-JX SHLD OCTOBER 135 1.35 CALL CREDIT= $1.35
NET CREDIT = $0.50

INITIAL "NET- CREDIT TARGET= $0.50 or $50.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.50 = $500.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,500.00
RETURN ON INVESTMENT= 11.11%
EXIT Strategy IF NET DEBIT = $1.50


CREDIT PUT SPREADS

SELL CLF-VO CLF OCTOBER 75 0.6 PUT CREDIT = $0.60
BUY CLF-VN CLF OCTOBER 70 0.3 PUT DEBIT = $0.30
NET CREDIT = $0.30

INITIAL "NET- CREDIT TARGET= $0.30 or $30.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.30 = $300.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,700.00
RETURN ON INVESTMENT= 6.38%
EXIT Strategy IF NET DEBIT = $0.90



Monthly Cash Machine Newsletter Archives