Option Investor
Newsletter

WATCH LIST- SEPTEMBER 9-5-06

HAVING TROUBLE PRINTING?
Printer friendly version

SEPTEMBER

Monthly Cash Machine

AS OF: 09-05-06

CURRENT

ISSUE GOES ON

WATCH LIST

ISSUE

STOCK PRICE

WATCH LIST IF:

PRICE

^SOXX

451.96

ABOVE

422.50

SBUX

31.99

ABOVE

31.50

IR

39.02

ABOVE

38.50

RYL

41.81

ABOVE

42.50

GPRO

48.24

ABOVE

52.50

LCAV

43.65

ABOVE

43.50

WBMD

39.12

ABOVE

38.50

JCP

65.03

BELOW

62.50

AAPL

71.48

BELOW

66.00

SNDK

58.06

BELOW

52.00

WATCH LIST COMMENTARY:

ADDS and DROPS to WATCH LIST:

WBMD goes on the WATCH list with close above $38.50 at $39.12

IR sneaks pass the $39 price with close at $39.02 and remains on the WATCH LIST slightly above the $38.50 WATCH LIST price.

SBUX - closes at $31.99 up slightly and stays on the WATCH LIST with close above $31.50

WATCH LIST - UPDATES

^SOXX - techs run and so does the SOXX, closing up over $7.00 at $451.96 We really will 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, if the resisitance can hold. This index still could retrace 50% of its recent highs near the $455 price area. We need a pullback but may have to roll out to OCTOBER if we do not get one. Only issue that is REALLY on ALERT at this time

LCAV - continues on the WATCH LIST, but does close down to $43.65, barely on the WATCH list.

CURRENT ISSUES ON THE WATCH LIST - 9-05-06

LCAV

^SOXX

IR

SBUX

WBMD

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