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OCTOBER POSITION - ROLLING OUT SOX

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We are recommending the following OCTOBER recommendation

We are recommending the following put spread on the following issue.


SOX - Philadelphia Semiconductor index

We are recommending the following specific put write:

We are rolling down the position on the SOX and writing double the contracts

We will be writing 20 spreads on the SOX

SOX $463.83

SELL SXX-VE SOX OCT $425.00 PUT CREDIT= $3.75
BUY SXX-VD SOX OCT $420.00 PUT DEBIT $3.05
NET CREDIT = $0.70
 

INITIAL "NET- CREDIT TARGET= $0.70 or $70.00
POTENTIAL PROFIT (x 20 CONTRACTS @ $0.70 = $1400.00
MARGIN REQUIRE. (x 20 CONTRACTS $8,600.00
RETURN ON INVESTMENT= 16.28%
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: $445.00
2.INDEX OPTIONS AND HOLDER ISSUES:
In ADDITION IF WE ARE USING A INDEX OR HOLDER OPTION WE WILL RECOMMEND WHEN A STOP SHOULD BE ADDED, IF THAT TIME BECOMES NECESSARY.



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