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Initial MCM January 2008 recommendations 12-16-07

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We are recommending the following recommendations for January 2008.

We are recommending credit spreads in the following issues:

FED - First Fed Financial Corp., operates as a holding company for First Federal Bank of California that provides various banking services in California. The bank engages in generating deposits and originating loans. Its deposit products include passbook, money market deposit, interest-bearing checking, non interest-bearing checking, and fixed-term certificate accounts. The bank's loan portfolio comprises adjustable mortgage, residential, commercial, industrial, construction, and consumer loans. It also provides trust and insurance brokerage services.

SSRI - Silver Standard Resources, Inc. engages in the acquisition, exploration, and development of silver mineral properties in Argentina, Australia, Canada, Chile, Mexico, Peru, and the United States. It owns a 100% interest in the Diablillos silver-gold project located in the province of Salta in north-western Argentina; the Pirquitas silver property located in the province of Jujuy in northern Argentina; the Bowdens project located in New South Wales, Australia; the Silvertip, Snowfield, and Sulphurets projects located in British Columbia, Canada; the Sunrise Lake deposit located in Northwest Territories, Canada; and the Challacollo silver project located in northern Chile.

USNA - USANA Health Sciences, Inc. engages in the development and manufacture of nutritional and personal care products in the United States. It offers two product lines, USANA Nutritionals and Sense. The USANA Nutritionals product line comprises essentials, which include vitamin and mineral supplements that provide a foundation of nutrition for various age groups; optimizers that are designed to meet individual health and nutritional needs; and macro-optimizers comprising low-glycemic functional foods and other related products.

TBSI - TBS International Limited, an ocean transportation services company, offers shipping solutions through liner, parcel, bulk, and vessel chartering services. Its liner, parcel, and bulk services primarily carry steel products, salt, sugar, grain, fertilizers, chemicals, metal concentrates, aggregates, and general cargo. The company also provides short and long-term time charters that offer its customer an alternative means to contract for ocean transportation of cargoes and make the carrying capacity of entire vessels available to its customers

We are recommending the following specific credit spreads

Call credit spreads (bearish call spreads)

FED $33.82

BUY FED-AI FED JAN $45.00 CALL DEBIT = $0.40
SELL FED-AH FED JAN $40.00 CALL CREDIT= $0.75
NET CREDIT = $0.35
 

INITIAL "NET- CREDIT TARGET= $0.35 or $35.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.35 = $350.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,650.00
RETURN ON INVESTMENT= 7.53%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $37.50
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:
BUY POSITION STOP BELOW
FED-AH EXIT >> = $3.00 STOP LIMIT
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

SSRI $33.89

BUY IZU-AI SSRI JAN $45.00 CALL DEBIT = $0.30
SELL IZU-AH SSRI JAN $40.00 CALL CREDIT= $0.75
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
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $37.50
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:
BUY POSITION STOP BELOW
IZU-AH EXIT >> = $3.00 STOP LIMIT

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

USNA $38.40

BUY UNX-AJ USNA JAN $50.00 CALL DEBIT = $0.35
SELL UNX-AI USNA JAN $45.00 CALL CREDIT= $0.80
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
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $42.50
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:
BUY POSITION STOP BELOW
UNX-AI EXIT >> = $3.20 STOP LIMIT

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


TBSI $36.71

BUY TQF-AJ TBSI JAN $50.00 CALL DEBIT = $1.30
SELL TQF-AI TBSI JAN $45.00 CALL CREDIT= $1.80
NET CREDIT = $0.50
 

INITIAL "NET- CREDIT TARGET= $0.50 or $50.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.50 = $500.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,500.00
RETURN ON INVESTMENT= 11.11%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $40.00
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.
THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
BUY POSITION STOP BELOW
TQF-AI EXIT >> = $4.50 STOP LIMIT

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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