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Three (3) additional option writer positions being recommended

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3 ADDITIONAL PUT WRITES FOR THE OPTION WRITER


We are recommending four (3) additional put writes on the following issues for the January recommended list:

VRTX - Vertex Pharmaceuticals Incorporate
a biotechnology company, engages in the discovery, development, and commercialization of small molecule drugs for HIV infection, chronic hepatitis C virus infection, inflammatory and autoimmune disorders, cancer, pain, and bacterial infection. It offers Lexiva/Telzir and Agenerase for HIV infection. The company is developing Merimepodib and VX-950, which are in phase I and phase II stage; VX-765, VX-702, and Pralnacasan that are in phase II stage; VX-680, VX-944, and VX-322, which are in phase I and preclinical stage; and VX-409 and VX-692, that are in preclinical stage. Vertex Pharmaceuticals has collaboration agreements with Aventis S.A.; GlaxoSmithKline plc; Novartis Pharma AG; Merck & Co., Inc.; Mitsubishi Pharma Corp.; and Cystic Fibrosis Foundation Therapeutics Incorporated. It also has collaboration agreements with Schering AG; Kissei Pharmaceutical Co., Ltd.; and Eli Lilly and Company. In addition, it has a licensing agreement with Avalon pharmaceuticals, Inc. for the development and commercialization of the IMPDH inhibitor VX-944 for the treatment of cancer. Vertex Pharmaceuticals was founded by Joshua Boger in 1989 and is headquartered in Cambridge, Massachusetts.

RBAK - Redback Networks, Inc.
provides telecommunications networking equipment. Its products enable carriers
and service providers to build broadband networks that can deliver high-speed access and services to consumers and businesses. The company offers subscriber management systems (SMS), and the SmartEdge router and service gateway systems. The SMS platform allows broadband service providers to connect end-users, as well as manages
user accounts and service profiles.

CAL - Continental Airlines, Inc.,
an air carrier, engages in transporting passengers, cargo, and mail. The company directly serves destinations throughout Europe, Canada, Mexico, Central and South America,
and the Caribbean, as well as Tel Aviv, Hong Kong, and Tokyo. It also provides services in the western Pacific, including service to various Japanese cities. As of December 31, 2004, Continental Airlines flew to 130 domestic and 113 international destinations, and offered additional connecting service through alliances with domestic and foreign carriers.


This this will bring our January position total to seven (7).

We are recommending the following specific put writes:



SELL VRTX JAN SYM: VQR-MX
Target Price $45.00 22.5 Put

Potential Profit(10 x = $450.00
Initial Margin $5,988 10 (contracts)
Return on Investment 7.52%
Cost Basis in Stock = $22.05
Days to Expiration = 32
STOP EXIT STRATEGY
Close option position if Stock drops to => 22.50

SELL RBAK JAN SYM: RBU-MV
Target Price $35.00 12.5 Put
Potential Profit(10 x = $350.00
Initial Margin $3,158 10 (contracts)
Return on Investment 11.08%
Cost Basis in Stock = $12.15
Days to Expiration = 32
STOP EXIT STRATEGY
Close option position if Stock drops to => 12.50

SELL CAL JAN SYM: CAL-MW
Target Price $40.00 17.5 Put
Potential Profit(10 x = $400.00
Initial Margin $4,446 10 (contracts)
Return on Investment 9.00%
Cost Basis in Stock = $17.10
Days to Expiration = 32
STOP EXIT STRATEGY
Close option position if Stock drops to => 17.50

As usual we will be monitoring positions and inform you if any adjustments need to be made. In addition we are using a contingency STOP using the stock price . If stock price drops to the strike price of the underlying issue it will close the option out at the then current market price. This will provide a cushion in case of an unforeseen event that may affect any of the issues above abnormally negatively.

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