Monthly Cash Machine Newsletter, Monday, 10/10/2005 11:40:57 PM ET
XAU spread added to Recommended list
by Steve Gail
HAVING TROUBLE PRINTING?
The following spread is being added to our recommendation list
XAU - Philadelphia Silver and Gold Index
The U.S. economy currently facing an increase in retail prices, which is a forerunner
of inflation. This uncertainty will keep investors hedging with gold and precious metals.
In addition, we don't see this uncertainty ending until U.S retail prices, especially energy related issues level off.
WIth winter rapidly approaching the scenario of lower energy prices seems very unlikely.
SELL XAV-VA $XAU OCT 105 PUT CREDIT = $0.80
BUY SWO-VA $XAU OCT 102.5 PUT DEBIT = $0.50
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 $2,200.00
RETURN ON INVESTMENT= 13.64%
EXIT Strategy IF NET DEBIT = $1.00