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MCM JUN 2008 DJX Monthly Cash Machine Recommendation 5-5-08

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DJX JUN 2008 PORTFOLIO RECOMMENDATION ONLY:

We are recommending the following credit spreads to our DJX Monthly Cash Machine portfolio.

We are recommending the following specific call and put spreads on the DJX

REMEMBER: With the right broker the margin requirement is only going to be required on one of the two sides, with the wrong broker the margin could be required on both the call and the put side. That is $10,000 margin with the right broker....$20,000 with the wrong broker.

P.S. Remember your broker should be working for you.

We are recommending the following specific call and put spreads on the DJX

^DJX $128.67

BUY DJY-FI ^DJX MAY $139.00 CALL DEBIT = $0.07
SELL DJY-FG ^DJX MAY $137.00 CALL CREDIT= $0.18
NET CREDIT = $0.11
 

INITIAL "NET- CREDIT TARGET= $0.13 or $13.00
POTENTIAL PROFIT ( X 50 CONTRACTS @ $0.11 = $550.00
MARGIN REQUIRE. 50 CONTRACTS $9,350.00
RETURN ON INVESTMENT= 6.95%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE $2.00
1. INDEX WILL BE PLACED ON WATCH LIST IF INDEX PRICE RAISES TO: $132.00
DIFFERENCE IN THE STRIKE PRICES 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

^ DJX $128.67

SELL DJW-RL DJX JUN $116.00 PUT CREDIT= $0.41
BUY DJV-RJ DJX JUN $114.00 PUT DEBIT $0.29
NET CREDIT = $0.12
 

INITIAL "NET- CREDIT TARGET= $0.12 or $12.00
POTENTIAL PROFIT (x 10 50 CONTRACTS @ $0.12 = $600.00
MARGIN REQUIRE. 50 CONTRACTS $9,400.00
RETURN ON INVESTMENT= 6.38%
EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. INDEX WILL BE PLACED ON WATCH LIST IF INDEX PRICE DROPS TO: $122.00

DIFFERENCE IN THE STRIKE PRICES 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

REMEMBER:
Our regular MCM JUNE 2008 recommendations will begin this weekend.






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