A NEW FEATURE TO THE MONTHLY CASH MACHINE: Dow Jones Industrial Average Monthly Credit Spread - DJX
Starting this month and every month after the Monthly Cash Machine will use a credit spread strategy that will involve generating income using the DJIA as the underlying issue ( DJX Index.)
This position will require a $10,000 margin requirement, and if you have the right broker, you should be able to put on the other side of the spread ( we we make that additional recommendation ) without incurring any additional margin requirement
The position will be a 50 contract spread with a 2 point strike price interval between the strike prices. We will follow this position and trade it every month as a separate recommendation and in a separate portfolio, called the:
$5,000 =25 contracts
In addition we recommend having twice the margin requirement in the account as insurance in case we need margin to roll out a position or double up a position.
The DJX Index moves in tandem with the DJIA and is priced the same as the Dow Jones Industrial Average the only differenceis the decimal place is moved over two places to the left
We are starting off MARCH with the following DJIA (DJX) index spread
DJX - DJ INDUSTRIAL AVERAGE (DJX)
We are recommending the following specific credit spread in the DJX
^DJX $121.82 (Please do not haggle over a $0.01, if you can get $0.12 take it as well)
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