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INITIAL MAY RECOMMENDATIONS FOR MONTHLY CASH MACHINE 4-15-06

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INITIAL MAY RECOMMENDATIONS

We are recommending spreads on the following issues:


CMED - China Medical Technologies, Inc. is a China-based medical device company that develops, manufactures and markets products using HIFU for the treatment of solid cancers and benign tumors in China. They design and development HIFU tumor therapy devices in China. Their HIFU therapy system is SFDA-approved and has been used to treat over 20,000 patient cases. In addition, they offer an integrated luminescence immunoassay IVD system using ECLIA technology to detect and monitor various diseases and disorders through laboratory evaluation and analysis of blood or urine.

KBH - KB Home is a builder of single-family homes with domestic operations in several western states, and international operations in France. Domestically, the company builds innovatively designed homes which cater primarily to first-time homebuyers, generally in medium-sized developments close to major metropolitan areas. Internationally, the company also builds commercial projects and high density residential properties such as condominium complexes.


TEX - Terex Corp. is a global manufacturer of a broad range of construction and mining related capital equipment. The company strives to manufacture high quality machines which are low cost, simple to use and easy to maintain. The company's principal products include telescopic mobile cranes, aerial work platforms, utility aerial devices, telescopic material handlers, truck mounted mobile cranes, rigid and articulated off-highway trucks and high capacity surface mining trucks, and related components and replacement parts.

OSX - Philadelphia Oil service Sector (Index)


We are recommending the following specific credit spreads

CALL CREDIT SPREADS

CMED $24.26

BUY QCY-EG CMED MAY $35.00 CALL DEBIT = $0.30
SELL QCY-EF CMED MAY $30.00 CALL CREDIT= $0.70
NET CREDIT = $0.40
INITIAL "NET- CREDIT TARGET= $0.40 or $40.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.40 = $400.00

MARGIN REQUIRE. (x 10 CONTRACTS $4,600.00
RETURN ON INVESTMENT= 8.70%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $27.13

MAXIMUM EXPOSURE is: $5.00 Which is the difference between the strike prices

2. A STOP LIMIT will be placed on the SHORT STRIKE PRICE:
QCY-EF STOP LIMIT EXIT >> = $2.10

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

KBH $64.66

BUY KBH-EO KBH MAY $75.00 CALL DEBIT = $0.20
SELL KBH-EN KBH MAY $70.00 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 = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE.
STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $67.33

MAXIMUM EXPOSURE is: $5.00 Which is the difference between the strike prices


2. A STOP LIMIT will be placed on the SHORT STRIKE PRICE:
KBH-EN STOP LIMIT EXIT >> = $1.95

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


PUT CREDIT SPREADS

TEX $82.94

SELL TEX-QO TEX MAY $75.00 PUT CREDIT= $0.70
BUY TEX-QN TEX MAY $70.00 PUT DEBIT $0.30
NET CREDIT = $0.40
INITIAL "NET- CREDIT TARGET= $0.40 or $40.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.40 = $400.00

MARGIN REQUIRE. (x 10 CONTRACTS $4,600.00
RETURN ON INVESTMENT= 8.70%
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: $79.00


2. 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:

TEX-QO STOP LIMIT EXIT >> = $1.60
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

^OSX 213.71

SELL FWG-QS ^OSX MAY $192.50 PUT CREDIT= $1.65
BUY FWG-QR ^OSX MAY $187.50 PUT DEBIT $1.20
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 = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE: $5.00
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE DROPS TO: $203


STOP LIMIT is below and will be placed on the SHORT STRIKE PRICE with the exception of INDEXES where there will be a NET DEBIT STOP
to close out any position as noted below
NET DEBIT STOP LIMIT EXIT >> = $1.60


When these positions are filled we will have four (4) plays on our MAY RECOMMENDED LIST


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