Option Investor
Newsletter

WATCH LIST - WEEKEND 9-2-06 update - Monthly Cash Machine

HAVING TROUBLE PRINTING?
Printer friendly version

SEPTEMBER

Monthly Cash Machine

AS OF: 09-02-06

CURRENT

ISSUE GOES ON

WATCH LIST

ISSUE

STOCK PRICE

WATCH LIST IF:

PRICE

^SOXX

444.52

ABOVE

422.50

SBUX

31.76

ABOVE

31.50

IR

38.60

ABOVE

38.50

RYL

42.38

ABOVE

42.50

GPRO

48.62

ABOVE

52.50

LCAV

43.90

ABOVE

43.50

WBMD

38.21

ABOVE

38.50

JCP

64.05

BELOW

62.50

AAPL

68.38

BELOW

66.00

SNDK

58.73

BELOW

52.00

WATCH LIST COMMENTARY:

ADDS and DROPS to WATCH LIST:

IR sneaks its way unto the WATCH LIST with close at $38.60, slightly above the $38.50 WATCH LIST price.

SBUX - closes at $31.76 and goes on our WATCH LIST with close above $31.50

RYL - drops to $42.38 and goes off the WATCH LIST with close below $42.50. $43.50.

WATCH LIST - UPDATES

^SOXX a funny thing happen on the way to the Dow up day of 87. The ^SOXX took the day off and was down around $4.50 to close at 444.52, still deep on our WATCH LIST , but now only $4.52 in the money; We are still have to keep our attention on this position and may still look to act as we head into next week after the Labor day holiday. WE CONTINUE TO WATCH THIS ONE CLOSELY; There is still hope with this position, especially with the DOW, S&P and NASDAQ all moving higher. This index looks like it is hopefully attempting to do a 50% retracing of its recent highs around the $455 price area. We will soon find out.

LCAV - continues on the WATCH LIST, but does close down $0.13 at $43.90 .


NOTICE:. WBMD went right thru the WATCH LIST price and temporarily over the $40 price ( no news), but later settled back under the WATCH LIST price of $38.50 at $38.21 ( up well over $1.00). Buying was probably just overdone. Might be worth just taking a peek at next week.

CURRENT ISSUES ON THE WATCH LIST - 9-02-06

LCAV

^SOXX

IR

SBUX

Explanation of the Watch List:

The "WATCH LIST" is nothing more than a quick way

to see where the current stock price is in relationship to the short side of our trade.

It simply works like this:

If the strike is more than two strikes away from our SHORT side

We code it in GREEN

>

If the stock remains in the normal trading range.

We do not code it it remains WHITE

>

If the stock goes below the predetermined WATCH LIST Target ( if put spread ) or above ( if call spread).

We code it in YELLOW. ( The yellow just means we should be watching the issue.

If the issue goes into the MONEY against our "Short" position

We code it RED and will act on the position by closing out the position or by "rolling" the position up or down

It is nothing more than a gauge to measure, quickly where we are and which position we might have to WATCH and maybe even potentially acted upon.

Monthly Cash Machine Newsletter Archives