We are starting off the October expiration with the following recommendations.
We are recommending credit spreads in the following issues.
POT - Potash Corporation of Saskatchewan Inc. is the world's largest potash company, the third largest phoshate producer and the second largest nitrogen producer in the world. Behind its growing success lies a vital infrastructure: knowledgeable PCS Sales staff throughout Canada and the United States, a transportation network that includes truck, train, barge, lake ship and ocean vessel, and warehouses strategically located in major consuming areas.
SHLD - Sears Holdings Corporation, the parent of Kmart and Sears, Roebuck and Co., is the leading home appliance retailer in North America and is a retail sales leader in tools, lawn and garden, home electronics, and automotive repair and maintenance. Key proprietary brands include Kenmore, Craftsman and DieHard, and a broad apparel offering, including such well-known labels as Lands' End, Jaclyn Smith and Joe Boxer, as well as the Apostrophe and Covington brands.
UGA - The UNITED STATES GASOLINE FUND LP (UGA) is an exchange traded security that is designed to track in percentage terms the movements of gasoline prices. UGA issues units that may be purchased and sold on the American Stock Exchange. The investment objective of UGA is for the changes in percentage terms of its units' net asset value to reflect the changes in percentage terms of the price of gasoline, as measured by the changes in the price of the futures contract on unleaded gasoline traded on the New York Mercantile Exchange that is the near month contract to expire, except when the near month contract is within two weeks of expiration, in which case it will be measured by the futures contract that is the next month contract to expire, less UGA's expenses.
RYL - The Ryland Group, Inc. is a leading national homebuilder and mortgage-related financial services firm. The Company's homebuilding segment specializes in the sale and construction of single-family attached and detached housing. The financial services segment complements the Company's homebuilding activities by providing various mortgage-related products and services for retail customers including loan origination, loan servicing, title and escrow services. The financial services segment also conducts investment activities.
FCX - Freeport-McMoRan is engaged in mineral exploration and development, mining and milling of copper, gold, and silver in Indonesia, and the smelting and refining of copper concentrates in Spain and Indonesia. They are the world's lowest-cost copper producer and one of the world's largest producers of copper and gold. FCX's operations are conducted through its subsidiaries, P.T. Freeport Indonesia (PT-FI), P.T. IRJA Eastern Minerals Corporation (Eastern Mining) and through Atlantic Copper, S.A. (Atlantic).
CLR - CONTINENTAL RESOURCES is a crude-oil concentrated, independent oil and natural gas exploration and production company with operations in the Rocky Mountain, Mid-Continent and Gulf Coast regions of the United States. The Company focuses its operations in large new and developing plays where horizontal drilling, advanced fracture stimulation and enhanced recovery technologies provide the means to economically develop and produce oil and natural gas reserves from unconventional formations.
We are recommending the following specific credit spread.
call credit spreads - bearish credit spreads
put credit spreads - buliish credit spreads
DJX October Recommendation
We are recommending the following credit spread for October.
ACTION REGARDING PG for Monday.
We are going to recommend lowering our STOP on PGIK to $1.25. It is currently $0.95 - $1.00 as of the close
of the market on Friday.
Hopefully, we will get some decay of the PGIK option on Monday if we get a flat or down opening.
Anyway, we are making sure that if PG should make a run we will minimize our lost to $1.25 at most on
the PGIK Sept 55 Call.