Option Investor
Newsletter

Additional MCM March 2007 recommended Plahy 3-6-07

HAVING TROUBLE PRINTING?
Printer friendly version


We are adding the following put credit spread to our MARCH recommended list

We are recommending credit spreads in the following issue:


AAPL - Apple Computer, Inc. designs, manufactures and markets personal computers and related personal computing and communicating solutions for sale primarily to education, creative, consumer, and business customers.

W are recommending the following specific credit spread.

Put credit spread


AAPL $88.19

SELL QAA-OQ AAPL MAR $85.00 PUT CREDIT= $0.60
BUY QAA-OP AAPL MAR $80.00 PUT DEBIT $0.15
NET CREDIT = $0.45
 

INITIAL "NET- CREDIT TARGET= $0.45 or $45.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.45 = $450.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,550.00
RETURN ON INVESTMENT= 9.89%
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: $86.00
2.EQUITY OPTIONS
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:
AAPL POSITION STOP BELOW
QAA-OQ STOP LIMIT EXIT >> = $2.25

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