Monthly Cash Machine Newsletter, Thursday, 12/08/2005 09:06:37 PM ET
$SOX put credit spread added to Recommended List
by Steve Gail
HAVING TROUBLE PRINTING?
Looking for one more December put credit spread.
$SOX - Philadelphia Semiconductor Index
SELL SXX-XK $SOX DEC $455.00 PUT CREDIT= $0.50
BUY SXX-XJ $SOX DEC $450.00 PUT DEBIT $0.30
NET CREDIT = $0.20
INITIAL "NET- CREDIT TARGET= $0.20 or $20.00
POTENTIAL PROFIT (x 10 CONTRACTS@ $0.20 = $200.00
MARGIN REQUIRE. (x 10 CONTRACTS= $5,200.00
RETURN ON INVESTMENT= 3.85%
EXIT STRATEGY =NET DEBIT STOP = $0.80
January plays should be out this weekend.