Monthly Cash Machine Newsletter, Wednesday, 07/19/2006 12:26:50 AM ET
TWO NEW AUGUST RECOMMENDATIONS 7-18-06
by Steve Gail
HAVING TROUBLE PRINTING?
Two new AUGUST additions to the AUGUST WATCH LIST
We are recommending credit spreads in the following issues:
TOL - Toll Brothers, Inc. engages in the development, construction, financing, and sale of residential homes in the United States. It builds single-family detached and attached home communities, and master planned communities. The company's operations include development, architectural, engineering, mortgage, title, security monitoring, cable television, broadband Internet access, landscaping, lumber distribution, house component assembly, and manufacturing operations, as well as operate golf courses and country clubs
IFIN - Investors Financial Services Corp. operates as the holding company for Investors Bank & Trust Company that provides asset administration services for the financial services industry in the United States. The company offers core and value-added services to financial asset managers, such as mutual fund complexes, investment advisors, family offices, banks and insurance companies. Core services include middle office outsourcing, global custody, multicurrency accounting, and fund administration.
We are recommending the following specific credit spreads
Call credit spreads
TOL $22.67 ( yes, the TEP-HE symbol is correct )
|BUY TOL-HF TOL AUG $30.00 CALL DEBIT = $0.10
SELL TEP-HE TOL AUG $25.00 CALL CREDIT= $0.45
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 $4,650.00
RETURN ON INVESTMENT= 7.53%
EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $23.75
A STOP LIMIT will be placed on the SHORT STRIKE PRICE on any EQUITY OPTION that has a STRIKE PRICE DIFFERENCE OF $5.00 or MORE. ( IF INDEX OR HOLDER, WE WILL ADVISE WHEN STOP SHOULD BE UTILIZED BY BLOG. THE STOP LIMIT ON THIS POSITION IS NOTED BELOW: (NO STOP if a SPREAD is an INDEX on HOLDER option.
BUY STOP BELOW
TEP-HE EXIT >> = $1.80 STOP LIMIT
If and when the STOP LIMIT IS EXECUTED - A contingency order should be in place to then 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
|BUY FLQ-HW IFIN AUG $47.50 CALL DEBIT = $0.20
SELL FLQ-HI IFIN AUG $45.00 CALL CREDIT= $0.45
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 =1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $43.50
2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES WILL BE THE MAXIMUM LOSS: $2.50 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 IF NECESSARY
When these positions are filled this will bring out AUGUST RECOMMENDED LIST to four (4) positions.
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