Monthly Cash Machine Newsletter, Monday, 01/02/2006 12:16:25 PM ET
TWO NEW PLAYS FOR JANUARY EXPIRATION RECOMMENDATION LIST
by Steve Gail
HAVING TROUBLE PRINTING?
Let's start off the NEW YEAR WITH TWO NEW ADDITIONAL PLAYS
TWO ADDITIONAL PLAYS ADDED TO OUR JANUARY EXPIRATION RECOMMENDED LIST.
We are recommending spreads in the following issues:
BMHC - Building Materials Holding Corporation
provides building products and construction services in the United States. It operates through two segments, BMC West and BMC Construction. BMC West markets and sells building products, and manufactures building components, such as lumber,millwork, floor and roof trusses, and wall panels. It also provides construction services to builders and contractors. BMC Construction provides framing, installation, and other construction services to production homebuilders. The company was founded in 1987 and is headquartered in San Francisco, California.
NTES - Netease.com, Inc
through its subsidiaries and affiliates, operates an interactive online and
wireless community in China. It provides Chinese language content and services, including content, community and communication, and commerce, through its online games, wireless services, and Internet portal. The company's Web sites consolidate and distribute content through 21 channels, including channels focusing on news, entertainment, sports, finance, information technology, automobiles, astrology, and
cartoons, as well as regional sites in Guangdong and Shanghai.
We are recommending the following two (2) specific call credit spreads:
Call credit spreads
BUY BGU-AP BMHC JAN $80.00 CALL DEBIT = $0.35
SELL BGU-AO BMHC JAN $75.00 CALL CREDIT= $0.85
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 = NET DEBIT STOP = $2.00
BUY NQG-AM NTES JAN $65.00 CALL DEBIT = $0.20
SELL NQG-AL NTES JAN $60.00 CALL CREDIT= $0.65
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 = NET DEBIT STOP = $1.80
IWhen these two (2) positions are filled, this will bring our JANUARY RECOMMENDED LIST to eleven (11)
Look for SUPPLEMENTAL TRADES in a separate Blog email a little later today.