Monthly Cash Machine Newsletter, Sunday, 11/20/2005 02:30:02 PM ET
Three (3) additional spreads added to ourDecember recommended list
by Steve Gail
HAVING TROUBLE PRINTING?
We are adding the following 3 positions to our recommended list of December expirations
We are recommending spreads on the following companies.
POT - Potash Corporation of Saskatchewan, Inc.
produces fertilizer, and related industrial and feed products. The company produces potash, phosphate, and nitrogen products. It producespotash for use as fertilizer from six mines in Saskatchewan and one mine in New Brunswick. Its phosphate operations include the manufacture and sale of solid and liquid phosphate fertilizers, animal feed supplements, and purified phosphoric acid, which are used in food products and industrial processes.
LNG - Cheniere Energy, Inc. primarily engages in the development, construction, ownership, and operation of liquefied natural gas receiving terminals along the Gulf Coast of the United States. It develops LNG receiving terminal projects primarily on Quintana Island near Freeport, Texas; in Cameron Parish, Louisiana near Sabine Pass; near Corpus Christi, Texas; and at the mouth of the Calcasieu Channel in Cameron Parish, Louisiana.
AAPL - Apple Computer, Inc. engages in the design, manufacture, and marketing of personal computers and related software, services, peripherals, and networking solutions worldwide. It also designs, develops, and markets a line of portable digital music players along with related accessories and services, including the online distribution of third-party music and audio books.
The following specific spreads are recommended:
Credit Call Spreads
BUY POT-LR POT Dec $90.00 CALL DEBIT = $0.40
SELL POT-LQ POT Dec $85.00 CALL CREDIT= $0.70
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 = NET DEBIT STOP = $1.00
BUY LNG-LI LNG Dec $45.00 CALL DEBIT = $0.15
SELL LNG-LH LNG Dec $40.00 CALL CREDIT= $0.50
NET CREDIT = $0.35
INITIAL "NET- CREDIT TARGET= $0.35 or $35.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.35 = $350.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,650.00
RETURN ON INVESTMENT= 7.53%
EXIT STRATEGY = NET DEBIT STOP = $1.05
Credit Put Spread
SELL QAA-XL AAPL DEC $60.00 PUT CREDIT= $0.75
BUY QAA-XK AAPL DEC $55.00 PUT DEBIT $0.25
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 $5,500.00
RETURN ON INVESTMENT= 9.09%
EXIT STRATEGY = NET DEBIT STOP = $1.50