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NOTE REGARDING INITIAL MARCH PLAYS

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Just a small CORRECTION, The trades below should have stated MAR not FEB, However ALL THREE OF THE TRADES BELOW ARE MAR TRADES and THE SYMBOLS ARE CORRECT. Sometimes my program picks up the current month NAME as the month for the next cycle, however the SYMBOLS ARE ALWAYS CORRECT. ALWAYS GO BY THE SYMBOLS which my program double checks. The only change in this blog is substitition of the Word MAR for FEB ( which is noted in RED below), everything thing else is CORRECT regarding the spread including spread strikes and symbols.
The following is just a repeat of the initial blog with the change from the written description from FEB to MAR as noted below in RED.

We are starting off the MARCH recommendations with the following credit spreads:


We are recommending credit 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. In addition to sales through its company-operated retail stores, Starbucks sells coffee and tea products through other channels of distribution

GM - General Motors Corp. designs, manufactures, and markets automotive vehicles. General Motors also has substantial interests in digital communications, financial and insurance services, locomotives, and heavy-duty automatic transmissions. The company is one of the largest U.S. exporters of cars and trucks with a global presence in countries across the globe.

PLD - ProLogis is a real estate investment trust that operates a global network of industrial distribution facilities. ProLogis is one of the largest publicly held U.S.-based, global owner and lessor of industrial distribution and temperature-controlled distribution facilities

We are recommending the following specific credit spreads


Call credit spread:

SBUX $32.96

BUY SQX-CU SBUX MAR $37.50 CALL DEBIT = $0.05
SELL SQX-CG SBUX MAR $35.00 CALL CREDIT= $0.25
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: $33.50
2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES
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

Put credit spread:


GM $36.01

SELL GM-OZ GM MAR $32.50 PUT CREDIT= $0.40
BUY GM-OF GM MAR $30.00 PUT DEBIT $0.20
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 $2.50
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE DROPS TO: $34.00
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

PLD $71.08

SELL PLD-OU PLD MAR $67.50 PUT CREDIT= $0.65
BUY PLD-OM PLD MAR $65.00 PUT
DEBIT $0.35
NET CREDIT = $0.30

INITIAL "NET- CREDIT TARGET= $0.30 or $30.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.30 = $300.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,200.00
RETURN ON INVESTMENT= 13.64%
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: $69.50
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




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