Option Investor

March OW Addition

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Position Update

NYX - NYSE Euronext is still soft. So far, It held the 70 test to the penny. Keep a look out for an alert should NYX break the support.

WYNN - Reacted nicely to LVS (Las Vegas Sands) earnings yesterday. Look for resistance near 122.

YHOO - Yahoo has moved up about $0.90 from Friday. A possible trade is to simultaneously sell the YHOO March 32.5 Calls for $0.38/contract. The margin requirement should be the higher of either the call or put short option position assuming you sell the same quantity.

New watchlist - I am looking for a few short call candidates. Keep a look out for those. Also, I am adding GS (Goldman Sachs) and GROW (US Global Investors).

New Position

SPY - S&P 500 spiders.

Approximate Stock Price 134.26 Initial Margin/Contract $2,090
Expiration Month March Initial Cash Requirement $1,859
Option Strike 126 Max Return 12.42%
Option Symbol SPY OV Assigned Cost Basis $123.69
Option Target Price $2.31 Number of Contracts 3
Total Margin $6,271 Max Gain $693

Long term support is at 126 - 127. Set stop for half at a break of 132. My goal with this trade is to eventually leg into a short call on a bounce (if it happens).

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