Monthly Cash Machine Newsletter, Tuesday, 03/06/2007 11:47:53 PM ET
Additional MCM March 2007 recommended Plahy 3-6-07
by Steve Gail
HAVING TROUBLE PRINTING?
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
|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
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
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