Option Investor
Newsletter

2 additional positions added to our FEBRUARY RECOMMENDED LIST

HAVING TROUBLE PRINTING?
Printer friendly version

We are adding the following two (2) put credit spreads to our
FEBRUARY RECOMMENDED LIST

We are recommending put credit spreads on the following issues:

QLGC - QLogic Corporation
engages in the design and supply of semiconductor and board level input/output (I/O) products, fabric switches, and enclosure management semiconductors. The company's I/O products provide an interface between computer systems and their attached data storage peripherals, such as hard disk drives, tape drives, removable disk drives, and redundant array of inexpensive disks subsystems

AMD -Advanced Micro Devices, Inc. (AMD)
engages in the design, manufacture, and marketing of industry-standard digital integrated circuits worldwide. The company offers microprocessors, flash memory devices, and embedded microprocessors. The microprocessor products are used in desktop and mobile personal computers, servers and workstations, and chipset products. The flash memory products are used in mobile telephones, consumer electronics, automotive electronics, networking equipment, and other applications.


Put credit spreads


QLGC $39.67

SELL QLC-NU QLGC FEB $37.50 PUT CREDIT= $0.30
BUY QLC-NG QLGC FEB $35.00 PUT DEBIT $0.10
NET CREDIT = $0.20
INITIAL "NET- CREDIT TARGET= $0.20 or $20.00
POTENTIAL PROFIT (x 10 CONTRACTS@ $0.15 = $150.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,300.00
RETURN ON INVESTMENT= 6.38%
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: $38.00
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


AMD $41.80

SELL AKD-NU AMD FEB $37.50 PUT CREDIT= $0.35
BUY AKD-NZ AMD FEB $32.50 PUT DEBIT $0.05
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 $5.00
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE DROPS TO: $39.50
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

3. IF THE DIFFERENCE BETWEEN THE SPREAD STRIKE PRICES IS 5 points or more the STOP LIMIT is below
and will be placed on the SHORT STRIKE PRICE:
AKD-NU STOP LIMIT EXIT >> = $1.50
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

IF these two put spreads are filled this will bring our FEBRUARY RECOMMENDED POSITIONS to eleven (11).

Monthly Cash Machine Newsletter Archives