[Buying LEAPS on S & P Deposit Receipts (SPY)/Buying to open Dec '07 115 calls (FYNLC) on SPY/Limit $18.90]
Dear Member,
This morning, the S & P Deposit Receipts (SPY) have broken above recent resistance. Additionally, the implied volatility of the options is quite low. These factors have led me to the decision to place an order to buy the Dec '07 115 calls (FYNLC) 18.60 x 18.90. This play enables me to play the whole SP-500 and therefore benefit by upward moves in the overall market without incurring the risk attendant to an individual equity. The delta is about .72 right now. If my order is filled, I will place a stop contingent on SPY going below 118.46.
If anyone is interested, I have been able to get Steve Nison of Candlestick fame to give the Option Trader group a special deal for his upcoming candlestick class in Chicago. I highly recommend Steve's class to those of you who are interested in learning the extraordinary power of Japanese Candlestick charting. Steve is THE guru in candlesticks. If you are interested in the special deal, you can go to Steve's website at www.candlecharts.com/cutlossspecial to take advantage of an order for our group and subscribers.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft for
CutLoss, Inc.
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