Option Investor
Newsletter

CLARIFICATION OF BLOG RECOMMENDATIONS FROM LAST NIGHT

HAVING TROUBLE PRINTING?
Printer friendly version

This is a restate of the positions that you should have had last night. ALL the SYMBOLS issued last night are correct. Here is how the verbage should read. We are adding the following three credit spreads: One (1) for JUNE and Two (2) for JULY.

We are recommending credit spreads on the following issues

JUNE RECOMMENDATIONS

RYL - The Ryland Group, Inc., together with its subsidiaries, engages in home building and the provision of mortgage-finance in the United States. Its operations cover various aspects of the home buying process, including design, construction, and sale.




JULY RECOMMENDATIONS

SNDK - SanDisk Corporation designs, develops, manufactures, and markets flash storage card products used in various consumer electronics products. Its products include removable cards, universal serial bus flash drives, and flash-based MP3 players.

AKS - AK Steel Holding Corporation, through its subsidiaries, produces flat-rolled carbon, stainless, and electrical steels, as well as tubular products in the United States. It manufactures flat-rolled carbon steels, including coated, cold-rolled, and hot-rolled products; and specialty stainless and electrical steels that are sold in slab, hot band, and sheet and strip forms


We are recommending the following specific credit spreads

Call credit spread ( bearish credit spread )

SNDK $43.39 JULY

BUY SWF-GJ SNDK JUL $50.00 CALL DEBIT = $0.30
SELL SWF-GW SNDK JUL $47.50 CALL CREDIT= $0.60
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
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $45.00
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 ( bullish credit spread )

RYL $44.69 - (This position should require no additional margin with the right broker) ( This position now creates an iron condor on RYL) JUNE

SELL RYL-RV RYL JUN $42.50 PUT CREDIT= $0.30
BUY RYL-RH RYL JUN $40.00 PUT DEBIT $0.10
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: $43.00
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

AKS $34.90

SELL AKS-SF AKS JUL $30.00 PUT CREDIT= $0.65
BUY AKS-SY AKS JUL $27.50 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: $32.50
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

THIS SHOULD CLARIFY THE LASTEST BLOG RECOMMENDATIONS:

ALL THE TRADES , if they were placed were ALL the correct symbols

Sincerely


Steve

PS.. Look for more JULY recommendations this weekend and then more after next weeks JUN expiration date.

`



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