Option Investor
Newsletter

Additional Option Writer January Recommendations 1-4-07

HAVING TROUBLE PRINTING?
Printer friendly version

We are adding the following put writes to our January Recommended list

We are recommending put writes in the following issues

AMR - AMR Corporation (AMR), through its principal subsidiary, American Airlines, Inc., operates as a scheduled passenger airline. It also operates as a scheduled air freight carrier, providing a range of freight and mail services to shippers. In addition, the company, through AMR Eagle Holding Corporation, owns two regional airlines, which do business as 'American Eagle'. It also contracts with three independently owned regional airlines that do business as the 'American Connection'.

GM - General Motors Corporation (GM), together with its subsidiaries, primarily engages in the design, manufacture, and marketing of automotive products worldwide. The company operates through Automotive, and Financing and Insurance Operations (FIO) segments

We are recommending the following specific put writes.

AMR 33.80
SELL JAN 30 PUT = AMR-MF
Target Price $25.00
Potential Profit(10 x = $250.00
Initial Margin $7,010 10 (contracts)
Return on Investment 3.57%
Cost Basis in Stock = $29.75
Days to Expiration = 14
Stock goes on Watch List Price at: $32.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $30.00


GM $29.64
SELL JAN 27.50 PUT = GM-MY
Target Price $20.00
Potential Profit(10 x = $200.00
Initial Margin $6,128 10 (contracts)
Return on Investment 3.26%
Cost Basis in Stock = $27.30
Days to Expiration = 14
Stock goes on Watch List Price at: $28.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $27.50

Option Writers Newsletter Archives