Printer Friendly

eMail Article

August 24, 2008

Entry Alert - Mini-Sized Dow
by Patrice Johnson

8/24/2008 1:57:47 PM

Greetings, J.E.D.I.

Welcome to The J.E.D.I. Trader.

To learn more about my Stocks, Options & Options on Futures Trading Service, click here.

Sell one (1) Mini-Sized Dow 11,600 Call Option (Ticker Symbol: YMU811600C) Limit 231.00

Current Price for the Futures: $11,617.00 for the Futures

Current Price of the September 2008 MiniSized Dow 11,600 Call Option: $231.00

Expiration Date of Options Contract: September 19, 2008

Tick Size: 1 point = $5.00

Breakeven Point:

The breakeven point for selling one September 2008 Mini-Sized Dow 11,600 Call Option at $231.00 limit on Monday, August 25, 2008 is $11,825.80 (assuming you get filled at $231.00). That is, this position will begin to lose money if the Mini-Sized Dow closes above $11,825.80 at expiration. (231x5 minus (12.99x2 commissions) divided by 5 tick size + 11,600)

Note: If the September 2008 Mini-Sized Dow 11,600 Call Option closes below 11,600 at expiration (September 19, 2008), you will be able to keep the option premium of $1129.02. (231x5 minus (12.99x2 commissions))

Note: If you sell to open one September 2008 MiniSized Dow 11,600 Call Option (Ticker Symbol: YMU811,600C) and buy to open one September 2008 Mini-Sized Dow 12,050 Call Option (YMU812,050C), your total cost and inital margin requirements would be as follows:

My fellow J.E.D.I.,

Please see the daily and weekly chart for the September 2008 MiniSized Dow below DATED August 22, 2008.

WEEKLY CHART

Summary:

So, sell one September 2008 11,600 Call Option (Ticker Symbol: YMU811,600C) at a limit price of $231.00 AND buy one September 2008 12,050 Call Option (Ticker Symbol YMU812,050C) at a limit price of $55 just in case I am wrong about the bearish direction of the September 2008 MiniSized Dow Index.

Note: Your initial margin requirment will be lower if you do not execute the orders separately but rather as a spread. That is if you simultaneously place one order to sell to open one September 2008 11600 Call Option and buy to open one September 2008 12,050 Call Option at a limit price of $176.00 (the difference between the $231 call option premium for the selling of the 11,600 Call Option and the $55 call option preimum for the purhcase of the 12,050 call Option)

Good Luck!

And may the force of volatility will be with you.

Best Regards,

Patrice V. Johnson
The J.E.D.I Way

DISCLAIMER:
The information contained in this report and future reports and newsletters contain independent analyses, statements, opinions, beliefs, and strategies that are mine and not those of the company and is made available to anyone interested in my analyses, statements, opinions, beliefs, and strategies made on stocks, options, futures, or options on futures. Information, analyses, statements, options, beliefs, and strategies in this e-mail are for informational purposes only. I do not represent that the information, analyses, statements, opinions, beliefs, and strategies contained in this report or future reports and newsletters are accurate or complete. Internet subscribers and online readers should not rely upon this information for any purpose without seeking the expertise of a professional investment advisor, professional tax consultant and/or broker. The information contained in this report and future reports and newsletters is provided only as general information that may or may not reflect the most current developments; accordingly, information, analyses, statements, opinions, beliefs, and strategies contained in this report and future reports and newsletters is not promised or guaranteed to be correct or complete. The analyses, statements, information, opinions, beliefs, and strategies contained in this report is not a recommendation to buy, sell, or hold any stock, option, future, or option on future. Nor are the statements, analysis, information, opinions, beliefs, and strategies contained in this report or in future reports and newsletters an offer for any stock, option, future, or option on future or solicit the offer of any stock, option, future, or option on future of any company. I will trade securities of the companies on which I report during the term of engagement. Patrice V. Johnson, expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this report, and future reports, and newsletters. I assume no responsibility for your trading and investment results. You assume all responsibility for your trading and investment results. You may send me e-mail to Patrice@Stockbarometer.com . However, you should not send confidential or sensitive information via e-mail as the security of the Internet e-mail is uncertain. By sending sensitive or confidential e-mail messages that are not encrypted, you accept the risk of such uncertainty and possible lack of confidentiality over the Internet. I do not necessarily endorse, and is not responsible for, any third-party content that may be accessed through this report, and future reports, and newsletters.

Important Disclosure
Futures, Options, Mutual Fund, ETF and Equity trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to buy/sell Futures, Options, Mutual Funds or Equities. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this Web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

Performance results are hypothetical. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as a lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

Investment Research Group and all individuals affiliated with Investment Research Group assume no responsibilities for your trading and investment results.

Investment Research Group (IRG), as a publisher of a financial newsletter of general and regular circulation, cannot tender individual investment advice. Only a registered broker or investment adviser may advise you individually on the suitability and performance of your portfolio or specific investments.

In making any investment decision, you will rely solely on your own review and examination of the fact and records relating to such investments. Past performance of our recommendations is not an indication of future performance. The publisher shall have no liability of whatever nature in respect of any claims, damages, loss, or expense arising out of or in connection with the reliance by you on the contents of our Web site, any promotion, published material, alert, or update.

For a complete understanding of the risks associated with trading, see our Risk Disclosure.

Copyright © 2008-2010 Patrice V. Johnson

Image rendition and html coding Copyright © 2000-2010 SafeHaven.com

« Opinions expressed at SafeHaven are those of the individual authors and do not necessarily represent the opinion of SafeHaven or its management. Articles are available via RSS/XML. Please visit RSSHelp for instructions. »