Option Investor
Newsletter

ADDTIONAL MCM MARCH RECOMMENDATIONS 2-13-07

HAVING TROUBLE PRINTING?
Printer friendly version


We are adding the following six (6) credit spreads to our MARCH recommendated list.

We are recommending credit spreads in the following issues:

CTRP - Ctrip.com International, Ltd., through its subsidiaries, provides travel-related services, including hotel reservation, air ticketing, packaged tour services, Internet-related advertising, and other related services in China. It also engages in hotel management operations

DOX - Amdocs is a leading provider of customer care, billing and order management systems for communications and Internet services. Amdocs has an unparalleled success record in project delivery of its mission-critical products. With human resources of over 5,900 information systems professionals

VRTX - Vertex Pharmaceuticals Inc. discovers, develops and markets small molecule drugs that address major unmet medical needs. The company has eight drug candidates in clinical development to treat viral diseases, inflammation, cancer, autoimmune diseases and neurological disorders

CSTR - Coinstar, Inc. operate a national network of self-service coin-counting machines in the U.S., the U.K., and Canada. The company's Coinstar coin-counting units provide consumers with a fun, accurate and convenient means of converting accumulated change into cash.

CCJ - Cameco Corporation is the world's largest publicly traded uranium company and a growing gold producer. Its uranium products are used to generate electricity in nuclear power plants around the world, providing one of the cleanest sources of energy available today.

NDE - IndyMac Bancorp, Inc. is the holding company for IndyMac Bank, a federally insured savings bank. IndyMac Bank is one of the leading nearly pure play Internet banks in the country. IndyMac is a highly scalable consumer financial institution with an industry leading asset generation franchise predominantly over the Web.


We are recommending the following specific put spreads

CTRP $58.39

BUY QCT-CN CTRP FEB $70.00 CALL DEBIT = $0.25
SELL QCT-CM CTRP FEB $65.00 CALL CREDIT= $0.60
NET CREDIT = $0.35

INITIAL "NET- CREDIT TARGET= $0.35 or $35.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.35 = $350.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,650.00
RETURN ON INVESTMENT= 7.53%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE $5.00
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO:$61.00
2.EQUITY ISSUES
A STOP LIMIT will be placed on the SHORT STRIKE PRICE on any EQUITY OPTION that has a STRIKE PRICE DIFFERENCE OF $5.00 or MORE.
THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
BUY POSITION STOP BELOW
QCT-CM EXIT >> = $2.40 STOP LIMIT

If and when the STOP LIMIT IS EXECUTED - A contingency order should be in place to then SELL the LONG SIDE of the Spread and close the position with a Market Order if and when the SHORT side needs to be STOPPED OUT

DOX $33.63

BUY DOX-CH DOX FEB $40.00 CALL DEBIT = $0.05
SELL DOX-CG DOX FEB $35.00 CALL CREDIT= $0.40
NET CREDIT = $0.35

INITIAL "NET- CREDIT TARGET= $0.35 or $35.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.35 = $350.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,650.00
RETURN ON INVESTMENT= 7.53%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE $5.00
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $34.25
2. EQUITY Issues
A STOP LIMIT will be placed on the SHORT STRIKE PRICE on any EQUITY OPTION that has
A STRIKE PRICE DIFFERENCE of $5.00 or MORE
THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
BUY POSITION STOP BELOW
DOX-CG EXIT >> = $1.60 STOP LIMIT

If and when the STOP LIMIT IS EXECUTED - A contingency order should be in place to then SELL the LONG SIDE of the Spread and close the position with a Market Order if and when the SHORT side needs to be STOPPED OUT

VRTX $31.47

BUY VQR-CH VRTX FEB $40.00 CALL DEBIT = $0.10
SELL VQR-CG VRTX FEB $35.00 CALL CREDIT= $0.50
NET CREDIT = $0.40

INITIAL "NET- CREDIT TARGET= $0.40 or $40.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.40 = $400.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,600.00
RETURN ON INVESTMENT= 8.70%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE $5.00
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $33.00
2. EQUITY ISSUES
A STOP LIMIT will be placed on the SHORT STRIKE PRICE on any EQUITY OPTION that has a STRIKE PRICE DIFFERENCE OF $5.00 or MORE.
THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
BUY POSITION STOP BELOW
VQR-CG EXIT >> = $2.00 STOP LIMIT
If and when the STOP LIMIT IS EXECUTED - A contingency order should be in place to then SELL the LONG SIDE of the Spread and close the position with a Market Order if and when the SHORT side needs to be STOPPED OUT

CSTR $28.77

BUY QLR-CG CSTR FEB $35.00 CALL DEBIT = $0.10
SELL QLR-CF CSTR FEB $30.00 CALL CREDIT= $0.50
NET CREDIT = $0.40

INITIAL "NET- CREDIT TARGET= $0.40 or $40.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.40 = $400.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,600.00
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: $29.25
2. EQUITY ISSUES
A STOP LIMIT will be placed on the SHORT STRIKE PRICE on any EQUITY OPTION that has a STRIKE PRICE DIFFERENCE OF $5.00 or MORE.
THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
BUY POSITION STOP BELOW
QLR-CF EXIT >> = $2.00 STOP LIMIT

If and when the STOP LIMIT IS EXECUTED - A contingency order should be in place to then SELL the LONG SIDE of the Spread and close the position with a Market Order if and when the SHORT side needs to be STOPPED OUT


CCJ $37.42

BUY CC-JCI CCJ FEB $45.00 CALL DEBIT = $0.10
SELL CCJ-CH CCJ FEB $40.00 CALL CREDIT= $0.65
NET CREDIT = $0.55

INITIAL "NET- CREDIT TARGET= $0.55 or $55.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.55 = $550.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,450.00
RETURN ON INVESTMENT= 12.36%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $38.75
2. EQUITY ISSUES
A STOP LIMIT will be placed on the SHORT STRIKE PRICE on any EQUITY OPTION that has a STRIKE PRICE DIFFERENCE OF $5.00 or MORE.
THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
BUY POSITION STOP BELOW
CCJ-CH EXIT >> = $2.60 STOP LIMIT
If and when the STOP LIMIT IS EXECUTED - A contingency order should be in place to then SELL the LONG SIDE of the Spread and close the position with a Market Order if and when the SHORT side needs to be STOPPED OUT

NDE $37.05

BUY NDE-CI NDE FEB $45.00 CALL DEBIT = $0.20
SELL NDE-CH NDE FEB $40.00 CALL CREDIT= $0.75
NET CREDIT = $0.55

INITIAL "NET- CREDIT TARGET= $0.55 or $55.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.55 = $550.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,450.00
RETURN ON INVESTMENT= 12.36%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE $5.00
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $38.50
2. EQUITY ISSUES
A STOP LIMIT will be placed on the SHORT STRIKE PRICE on any EQUITY OPTION that has a STRIKE PRICE DIFFERENCE OF $5.00 or MORE.
THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
BUY POSITION STOP BELOW
NDE-CH EXIT >> = $3.00 STOP LIMIT

If and when the STOP LIMIT IS EXECUTED - A contingency order should be in place to then SELL the LONG SIDE of the Spread and close the position with a Market Order if and when the SHORT side needs to be STOPPED OUT






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