Option Investor

Option Writer Update

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NYSE Euronext (NYX) through its subsidiaries, offers various financial products and services. It provides securities listing, trading, and market data products and services. The company engages in trading cash equities, exchange traded funds and other structured products, and equity and interest rate derivatives, as well as the creation and distribution of market information related to trading in these products. Last week the stock launched higher on revenue increases and cost reductions showing that the recent merger has paid dividends. The stock is selling off a little after the huge increase in price and could continue to decline further to the $69 price area (the 89 DMA).

I like the 65 strike due to the 50 DMA being at 65.33 and the price support at 63.99. Both NYX and USB are considered financials but they are different from the big brokerages in that NYX executes trades and USB provides banking services and runs a mutual fund company (since all of you are option traders mutual funds are these funny things that invest pooled assets of many investors according to the specific fund's investment objectives). For those readers that are in the Max Marginers Group (MMG for short) you can sell 4 contracts.

Risk Management for NYX
Strike Stop = $ 65.00
Cost Basis Stop = $ 63.59
Technical Stop = $ 63.99
Premium Stop = $ 66.52

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