Option Investor
Newsletter

Additional Option Writer January 2007 Recommendations

HAVING TROUBLE PRINTING?
Printer friendly version


We are recommending the following put writes to add to our January Recommended list:

We are recommending put writes in the following issues:

JAS - Jo-Ann Stores, Inc. is one of the largest national category-dominant retailers serving the retail fabric and craft industry. The company serves households that engage in crafts and hobbies by offering a large variety of competitively priced, high quality apparel, quilting and craft fabrics and sewing-related products, home decorating fabrics, floral, craft and seasonal products, educational classes and custom services.

MDCO - Medicines Company acquires, develops and commercializes biopharmaceutical products in late stages of development. U.S. Food and Drug Administration intends to approve its first product, Angiomax, for use in the treatment of patients with unstable angina undergoing coronary balloon angioplasty.

XING - Qiao Xing Universal Telephone produces corded and cordless telephones and distributes such products through an extensive network of retail stores throughout China.

We are recommending the following specific put writes:

JAS 24.42
SELL JAN 22.5 PUT = JAS-MX
Target Price $40.00
Potential Profit(10 x = $400.00
Initial Margin $5,284 10 (contracts)
Return on Investment 7.57%
Cost Basis in Stock = $22.10
Days to Expiration = 28
Stock goes on Watch List Price at: $23.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $22.50

MDCO $31.70
SELL JAN 30.00 PUT = MQL-MF
Target Price $55.00
Potential Profit(10 x = $550.00

Initial Margin $6,890 10 (contracts)
Return on Investment 7.98%
Cost Basis in Stock = $29.45
Days to Expiration = 28
Stock goes on Watch List Price at: $31.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $30.00

XING $13.45
SELL JAN 12.50 PUT = QAE-MV
Target Price $40.00
Potential Profit(10 x = $400.00
Initial Margin $3,090 10 (contracts)
Return on Investment 12.94%
Cost Basis in Stock = $12.10
Days to Expiration = 28
Stock goes on Watch List Price at: $13.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $12.50

Option Writers Newsletter Archives