Monthly Cash Machine Newsletter, Thursday, 01/05/2006 05:06:58 PM ET
TWO ADDITIONAL RECOMMENDATIONS FOR THE JANUARY LIST
by Steve Gail
HAVING TROUBLE PRINTING?
ADDING NFLX and a 2nd SNDK SPREAD to our JANUARY Recommended List
Please take note that this SNDK credit put spread recommendation is our second SNDK recommendation and will be added to our January recommended list
In addition we are adding a NFLX credit call spread to our January Recommended list.
We are recommending spreads in the following issues:
SNDK - SanDisk Corporation
engages in the design, development, and market of flash storage card products
used in various consumer electronics worldwide. Its products include flash
cards, Universal Serial Bus, flash drives, and digital audio players.
NFLX - Netflix, Inc.
operates as an online movie rental subscription service provider in the United States. It
provides its subscribers access to a library of movie, television, and other filmed entertainment titles. The company also offers its subscribers with decision support information on each title in its library.
We are recommending specficly the following put credit spread and call credit spread
on the following
Put Credit Spread
SELL SWF-MZ SNDK Jan $62.50 PUT CREDIT= $0.70
BUY SWF-ML SNDK Jan $60.00 PUT DEBIT $0.35
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 $2,850.00
RETURN ON INVESTMENT= 12.28%
EXIT STRATEGY = NET DEBIT STOP = $1.40
Call Credit Spread
BUY QNQ-AF NFLX JAN $30.00 CALL DEBIT = $0.10
SELL QNQ-AY NFLX JAN $27.50 CALL CREDIT= $0.35
NET CREDIT = $0.25
INITIAL "NET- CREDIT TARGET= $0.25 or $25.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.25 = $250.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,250.00
RETURN ON INVESTMENT= 11.11%
EXIT STRATEGY = NET DEBIT STOP = $1.00
When these positions are filled it will bring our total JANUARY RECOMMENDATION LIST to eleven (11)