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INITIAL FEBRUARY RECOMMENDATIONS

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We are recommending the following three (3) initial recommendations for our FEBRUARY RECOMMENDATION LIST


We are recommending credit spreads in the following issues:

NEM - Newmont Mining Corporation
primarily engages in the acquisition, production, and exploration of
gold properties. The company has mining operations in the United States, Australia, Peru, Indonesia, Canada, Uzbekistan, Bolivia, New Zealand, Ghana, and Mexico. As of December 31, 2004, Newmont had 92.4 million equity ounces of proven and probable gold reserves and an aggregate land position of approximately 51,500 square miles. The company also engages in silver, copper, and zinc production, as well as in merchant
banking operations. Its merchant banking business includes portfolio management, such as providing in-house investment banking and advisory services. Newmont Mining Corporation was founded in 1916 and is headquartered in Denver, Colorado.

XLE - Energy Select Sector ( SPDRS)


INFY - Infosys Technologies Limited
provides consulting and information technology services primarily in
North America, Europe, and the Asia-Pacific region. Its solutions include custom application development, maintenance and production support, software re-engineering, package evaluation and implementation, and information technology consulting.

We are recommending the specific two (2) put credit spreads and one (1) Call credit spread as below:

PUT CREDIT SPREADS

NEM $59.87

SELL NEM-NX NEM FEB $52.50 PUT CREDIT= $0.50
BUY NEM-NJ NEM FEB $50.00 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 $2,300.00
RETURN ON INVESTMENT= 8.70%
EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE = DIFFERENCE: $2.50

1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE DROPS TO: $54.50

2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES the Difference IN THE STRIKE PRICE WILL BE OUR MAXIMUM EXPOSURE - WE WILL NOT USE STOPS ON THOSE POSITIONS. THEY WILL GO ON THE WATCH LIST AND BE FOLLOWED WITH INSTRUCTIONS AS TO HOW TO PROCEED OR/WHAT EXIT POINT NEEDS TO BE ESTABLISHED.

XLE $54.46

SELL XBT-NY XLE FEB $51.00 PUT CREDIT= $0.55
BUY XBT-NW XLE FEB $49.00 PUT DEBIT $0.35
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 $1,800.00
RETURN ON INVESTMENT= 11.11%
EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE: $2.00

1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE DROPS TO: $53.00

2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES the Difference
IN THE STRIKE PRICE WILL BE OUR MAXIMUM EXPOSURE - WE WILL NOT USE STOPS ON THOSE POSITIONS. THEY WILL GO ON THE WATCH LIST AND BE FOLLOWED WITH INSTRUCTIONS AS TO HOW TO PROCEED OR/WHAT EXIT POINT NEEDS TO BE ESTABLISHED


CALL CREDIT SPREADS


INFY $73.45

BUY IUN-BQ INFY FEB $85.00 CALL DEBIT = $0.30
SELL IUN-BP INFY FEB $80.00 CALL CREDIT= $0.60
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 = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $76.73
2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES the Difference
IN THE STRIKE PRICE WILL BE OUR MAXIMUM EXPOSURE - WE WILL NOT USE STOPS ON THOSE POSITIONS. THEY WILL GO ON THE WATCH LIST AND BE FOLLOWED WITH INSTRUCTIONS AS TO HOW TO PROCEED OR/WHAT EXIT POINT NEEDS TO BE ESTABLISHED

3. IF THE DIFFERENCE BETWEEN THE SPREAD STRIKE PRICES IS 5 points or more the STOP LIMIT is below will be placed on the SHORT STRIKE PRICE:

IUN-BP STOP LIMIT EXIT >> = $2.40


If and when the STOP LIMIT IS EXECUTED - A contingency order should be in place to than SELL the LONG SIDE of the Spread and close the position with a Market Order if and when the SHORT side needs to be STOPPED OUT.

We will be adding more positions as the week goes on and more after the January options have expired.

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