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IRON CONDOR recommendation on HD and NTRI 08-30-07

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As mentioned in tonight's WATCH list we were considering iron condors on HD and NTRI


We are recommending the following put credit spreads on two of our current positions

NTRI - Nutrisystems

HD - Home Depot

By placing these positions on the current recommendation list we are creating iron condors for both the NTRI and HD. There should be no additional margin requirement with the right broker.

We are recommending the following specific two (2) credit put spreads to complete our iron condors on HD and NTRI

NTRI $54.12

SELL NSI-UJ NTRI SEP $50.00 PUT CREDIT= $1.10
BUY NSI-UI NTRI SEP $45.00 PUT DEBIT $0.50
NET CREDIT = $0.60
 

INITIAL "NET- CREDIT TARGET= $0.60 or $60.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.60 = $600.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,400.00
RETURN ON INVESTMENT= 13.64%
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: $52.00
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.

BE UTILIZED BY BLOG. THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
NTRI POSITION STOP BELOW
NSI-UJ STOP LIMIT EXIT >> = $3.20
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

HD $37.04

SELL HD-UG HD SEP $35.00 PUT CREDIT= $0.50
BUY HD-UZ HD SEP $32.50 PUT DEBIT $0.20
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: $36.00
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



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