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MCM DJX OCTOBER 2008 recommendation 9-11-08

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Let's begin OCTOBER 2008 off with our Monthly Cash Machine DJX Index credit spread

We are recommending the following Call credit spread for October

We are recommending the following specific DJX call credit spread`

^DJX $114.34

BUY DJW-JX ^DJX OCT $128.00 CALL DEBIT = $0.07
SELL DJW-JU ^DJX OCT $125.00 CALL CREDIT= $0.19
NET CREDIT = $0.12

INITIAL "NET- CREDIT TARGET= $0.12 or $12.00
POTENTIAL PROFIT ( X 50 CONTRACTS @ $0.12 = $600.00
MARGIN REQUIRE. 50 CONTRACTS $14,400.00
RETURN ON INVESTMENT= 4.17%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE $3.00
1. INDEX WILL BE PLACED ON WATCH LIST IF INDEX PRICE RAISES TO: 120.00

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



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