Option Investor
Newsletter

ADDITIONAL PLAY TO ADD TO MARCH RECOMMENDED LIST - KOMG

HAVING TROUBLE PRINTING?
Printer friendly version

KOMG - AN ADDITIONAL MARCH RECOMMENDATION TO BE ADDED TO OUR SPREAD POSITIONS

We are recommending the following put credit spread in the issue below:

KOMG - Komag, Incorporated
engages in the design, manufacture, and marketing of thin-film media (disks) that are incorporated into disk drives. These drives are used to record, store, retrieve, and protect digital information. The company's products offer a range of coercivities, glide height capabilities, and other parameters to meet specific customer requirements. Komag sells its products to original equipment manufacturers in the disk drive market worldwide. The company was founded in 1983 and is headquartered in San Jose, California.

We are recommending the specific put play below:

KOMG $49.79

SELL QKX-OI KOMG FEB $45.00 PUT CREDIT= $0.75
BUY QKX-OH KOMG FEB $40.00 PUT DEBIT $0.25
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 =1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE

STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE DROPS TO: $47.00
MAXIMUM LOSS EXPOSURE IS $5.00 - the difference in the strike prices.

QKX-OI STOP LIMIT EXIT >> = $2.00
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


When this spread is filled this will bring our MARCH RECOMMENDED LIST to Nine (9) positions.

Monthly Cash Machine Newsletter Archives