We are looking to add a couple of positions to our February recommmended list
and also look to put on the other side of the THOR and MON credit spreads.
Let's look at a few new additional February recommendations.
We are recommending credit spreads in the following issues.
AMZN - Amazon.com, Inc. operates as an online retailer in North America and internationally. It operates various retail Web sites, including amazon.com, amazon.co.uk, amazon.de, amazon.fr, amazon.co.jp, amazon.ca, and amazon.cn. The company serves its consumer customers through its retail Websites and focuses on selection, price, and convenience. It also offers programs that enable seller customers to sell their products on its Websites and their own branded Websites. In addition, the company serves developer customers through Amazon Web Services, which provides access to technology infrastructure that developers can use to enable virtually any type of business. Further, it offers co-branded credit card programs, fulfillment, and other marketing and promotional services, such as online advertising. Amazon.com, Inc. was founded in 1994 and is headquartered in Seattle, Washington.
X - United States Steel Corporation , through its subsidiaries, engages in the production and sale of steel products primarily in North America and Europe. The company operates through three segments: Flat-rolled Products (Flat-rolled), U. S. Steel Europe (USSE), and Tubular Products (Tubular). The Flat-rolled Products segment offers slabs, sheets, tin mill products, and strip mill plates and rounds. This segment serves service center, conversion, transportation, construction, container, and appliance and electrical markets in North America. It also produces iron ore pellets and coke. The USSE segment offers sheet, strip mill plate, tin mill and tubular products, and heating radiators and refractories in Europe. This segment serves construction, service center, conversion, container, transportation, appliance and electrical, oil and gas, and petrochemical industries
We are recommending the following specific credit spreads.
call credit spreads = bearish call spreads.
In regards to the MON position, we are going to sell the MON Feb 80/85 call credit spread for a net credit of $0.39. ( see below for spread order ). This will credit an iron condor on the MON position, with our goal having MON close hopefully between $75 and $80 at the February expiration. However, if MON should continue to go agains us it will give us and opportunity to get some call premium to offset any position that we might have to close out on MON on the Put side.
THOR - In regards to THOR we are going to sell the February 27.5/25 put credit spread for around $0.35 NET credit. That will give us a short position on both the call and the put at the 27.5 strike price. Our goal will be for THOR to close as close to 27.5 at expiration and attempt to keep all of one side of the iron condor and close or buy back the other side for as little as possible. In addition , If the position should go against us ( in regards to the call side ) we wil reduce any buy to close on the February call side by the Net premium we received on the put side, unless we decide to close out either position if THOR should either explode to the upside or dive to the downside. The one thing we have in our favor is we only have a 2.50 trike
difference between our long and short positions.
( see below for the THOR put credit spread. )
The addition of theses two positions in MON and THOR should not require any more margin , with the right broker, as the side you already have on satisfies the margin requirement for MON and THOR.
MON call credit spread.
THOR put credit spread.
Supplemental ETF and Holder recommendations.
The following issues are a few additional candidates to supplement
your search for profitable EFT and Index trades. As with any investment, you
must decide if the selections meet your criteria for potential plays.
Only you can know what strategies and positions are suitable for your
experience level, risk-reward tolerance and individual outlook.
There will be no commentary or analysis offered on these positions,
nor will they be included in the MCM Portfolio.