We are adding the following spreads to our May recommended list.
We are recommending credit spreads in the following issues.
RIMM - Research In Motion Limited designs, manufactures, and markets wireless solutions for the worldwide mobile communications market. The company, through the development of integrated hardware, software, and services that support multiple wireless network standards, provides platforms and solutions for seamless access to time-sensitive information, including email, phone, short messaging service, Internet, and intranet-based applications. Its products and services principally include the BlackBerry wireless platform, the RIM Wireless Handheld product line, software development tools, and other software and hardware.
MCO - Moody's Corporation, through its subsidiaries, provides credit ratings and related research, data, and analytical tools; risk management software; and quantitative credit risk measures, credit portfolio management solutions, and training services in the United States, Europe, the Middle East, and Africa. The company operates in two segments, MIS and MA. The MIS segment publishes credit ratings on a range of debt obligations, including various corporate and governmental obligations, structured finance securities, and commercial paper programs, as well as the entities that issue such obligations in markets worldwide.
ABT - Abbott Laboratories engages in the discovery, development, manufacture, and sale of health care products worldwide. It operates in four segments: Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Vascular Products. The Pharmaceutical Products segment offers adult and pediatric pharmaceuticals for rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis, psoriasis, Crohn's disease, dyslipidemia, HIV infection, hypothyroidism, advanced prostate cancer, endometriosis and central precocious puberty, anemia, obesity, epilepsy and bipolar disorder, migraines, secondary hyperparathyroidism, gastroesophageal reflux disease, duodenal and gastric ulcers, and erosive esophagitis, as well as provides anesthesia products and anti-infectives.
We are recommending the following specific credit spreads.
call credit spreads = bearish call credit spreads.
ETF/Holders/Index supplemental plays:
The following issues are a few additional candidates to supplement
your search for profitable ETF/Holders and Index option 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.
We are looking to close out our ACI May credit spread
We are looking to close the following.
Buy to close the ACI May 25 call
Sell to Close the ACI May 27 call
NET DEBIT of $1.50 ( The bid/Ask spread for the spread would be $1.40 - $1.60
so if might get an execution between as high as $1.60 if you take the bid price for the sell side
to close and the Ask price for the Buy to Close side. Remember you are working with
two options and thus have two (2) bid/ask prices to deal with and two spreads.
Because both postions are in the money, you should be able to exit for soomewhere
in the $1.40 - $1.65 at most, even if we get an up opening and maybe for as little as
$1.40 if we get a down opening on Monday.
In summary we are closing out the ACI May 25/27 call credit spread for $1.50 ( give or take
the spread as noted above.
We are also adding the following put spreads to our SBUX and AMSC positions and creating
an iron condor on both.
put credit spreads = bullish put spreads.
We are entering the following put spreads on SBUX and AMSC.