Option Investor
Newsletter

INITIAL SEPTEMBER RECOMMENDED LIST

HAVING TROUBLE PRINTING?
Printer friendly version

We are starting off the SEPTEMBER RECOMMENDATIONS with the following credit spreads.

WE are recommending SPREADS in the following issues

SBUX - Starbucks Corporation purchases and roasts high quality whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, a variety of pastries and confections, coffee-related accessories and equipment, and a line of premium teas, primarily through its company-operated retail stores.

IR - Ingersoll Rand Company is one of the leading providers of security and safety, climate control, industrial productivity and infrastructure products. In each of these markets, the company offers a diverse product portfolio that includes well- recognized industrial and commercial brands.

^SOXX - Semiconductor Index

JCP - J.C. Penney Company, Inc. is a major retailer operating in the U.S., Puerto Rico, Mexico and Chile. The company also has majority interest in a Brazilian department store chain. The major portion of the company's business consists of providing merchandise and services to consumers through department stores that include catalog departments.


We are recommending the following specific Credit spreads:

Call Credit spreads


SBUX $29.90

BUY SQX-IG SBUX SEP $35.00 CALL DEBIT = $0.10
SELL SQX-IZ SBUX SEP $32.50 CALL CREDIT= $0.35
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: $31.50
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

IR $36.99

BUY IR-IV IR SEP $42.50 CALL DEBIT = $0.10
SELL IR-IH IR SEP $40.00 CALL CREDIT= $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
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $38.50
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

^SOXX $405.39

BUY SXX-II ^SOXX SEP $445.00 CALL DEBIT = $2.80
SELL SXX-IH ^SOXX SEP $440.00 CALL CREDIT= $3.50
NET CREDIT = $0.70
 

INITIAL "NET- CREDIT TARGET= $0.70 or $70.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.70 = $700.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,300.00
RETURN ON INVESTMENT= 16.28%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $422.50

INDEX OPTIONS AND HOLDER ISSUES:
In ADDITION IF WE ARE USING A INDEX OR HOLDER OPTIONS WE WILL RECOMMEND WHEN A STOP SHOULD BE ADDED, IF THAT TIME BECOMES NECESSARY

PUT CREDIT SPREADS

JCP $65.20

SELL JCP-UL JCP SEP $60.00 PUT CREDIT= $0.60
BUY JCP-UR JCP SEP $57.50 PUT DEBIT $0.35
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 $2.50
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE DROPS TO: 62.50
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


When these spreads are filled this will start out our September positions with four (4)
positions.



Orders to purchase or sell securities through your account with optionsXpress, Inc., an independent registered broker-dealer ("optionsXpress"), shall be accepted and executed solely by optionsXpress, subject to the terms and conditions of your individual account agreement with optionsXpress. optionsXpress makes no investment recommendations and does not provide financial, tax or legal advice. All inquiries regarding your optionsXpress account, including any disputes or trading errors, should be directed to optionsXpress. Option Investor, Inc is not a registered broker-dealer and is not in the business of transacting trades. Furthermore, Option Investor, Inc is not a registered investment adviser, does not provide financial, tax or legal advice, and is not recommending that you buy or sell any particular security. optionsXpress has made its services available to you via Option Investor, Inc as a courtesy. optionsXpress and Option Investor, Inc are separate and unrelated entities. optionsXpress is not affiliated with and does not endorse or warrant the products or services of Option Investor, Inc.

Monthly Cash Machine Newsletter Archives