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ALTERNATIVES for subcriber who wish to roll PLD

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Please note the following alternatives for PLD if you decide you want to roll down and out the position as opposed to just closing it out for the loss.

ALTERNATIVES:

PLD alternatives if subcribers wish to ROLL down and out the PLD position instead of closing it out totally and taking the loss.

If PLD appears to be closing tomorrow near the maximum loss.

ALTERNATIVES if you wish to roll out PLD
If you choose to roll out the position on PLD you can do one of the following

You can close out the position on Friday before expiration and do either of the following:


CHOICE #1: Close out the MARCH spread and sell the following APRIL spread


PLD $65.70

SELL PLD-PZ PLD FEB $62.50 PUT CREDIT= $0.90
BUY PLD-PY PLD FEB $57.50 PUT DEBIT $0.15
NET CREDIT = $0.75

INITIAL "NET- CREDIT TARGET= $0.75 or $75.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.75 = $750.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,250.00
RETURN ON INVESTMENT= 17.65%
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: $63.50
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:
PLD POSITION STOP BELOW
PLD-PZ STOP LIMIT EXIT >> = $3.75
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

OR

MY INDIVIDUAL SUGGESTION IF YOU WISH TO ROLL ( CHOICE #2A )

CHOICE #2A: A MORE CONSERVATIVE TRADE: Close out the MARCH spread and sell the following spread for April

PRICE
PLD $65.70

SELL PLD-PZ PLD FEB $62.50 PUT CREDIT= $0.90
BUY PLD-PL PLD FEB $60.00 PUT DEBIT $0.45
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 $2,050.00
RETURN ON INVESTMENT= 21.95%
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: $63.50
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.

OR:

A Little more AGGRESSIVE then Choice above:
You can close out the MARCH spread and sell 20 or twice as many contracts as you did in March of CHOICE #2B above. That would be 20 contracts on the PLD APRIL spread instead of 10

AS for GM : We will take the loss as the net results of the subprime loansm may not have all surfaced yet. Let's just stay away from this one for now

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