Strategy of the Week (28 Nov 11): NFLX Calls

SPY:TLT Ratio Chart (28 Nov 11): TLT

The SPY:TLT (Stocks v. Bonds) ratio continues to favor bonds.

Leveraged ETFs (28 Nov 11): SRTY

Look for a bullish market where a rise in the price of the stock is anticipated.

ProShares UltraPro Short Russell 2000 (SRTY) $19.66

Profit Target (20%): $23.60 

Trailing-Stop (ATR x 2): $2.78

Traditional ETFs (28 Nov 11): RWM

Look for a bullish market where a rise in the price of the stock is anticipated.



ProShares Short Russell 2000 (RWM) $33.44

Profit Target (15%): $38.45 

Trailing-Stop (ATR x 2): $1.78

Fixed Income ETFs (28 Nov 11): TMF

Look for a bullish market where a rise in the price of the stock is anticipated.

Direxion 20+ Yr Trea Bull 3X (TMF) $71.15

Profit Target (15%): $81.85 

Trailing-Stop (ATR x 2): $6.76

Bull Call Spread (28 Nov 11): TLT

Look for a bullish market where you anticipate a modest increase in the price of the stock above the price of the short Call option.

TLT $120.80

Buy to Open (1) Dec 11 117 C @ $4.75

Sell to Open (1) Dec 11 122 C @ $1.79 

Net Debit: $2.96 ($296.00)

Breakeven: $119.96

Max. Profit: $204.00

Pct Return: 68.9% (20 days)

Bear Put Spread (28 Nov 11): SSO

Look for a bearish market where you anticipate a modest decrease in the price of the stock below the strike price of the short Put option.

SSO  $39.53

Buy to Open (1) Dec 11 44 P @ $5.20

Sell to Open (1) Dec 11 39 P @ $2.16 

Net Debit: $3.04 ($304.00)

Breakeven: $40.96

Max. Profit: $196.00

Pct Return: 64.5% (20 days)

Options Safari (21 Nov 11): MCD Call Spread

SPY:TLT Ratio Chart (21 Nov 11): TLT

The SPY:TLT (Stocks v. Bonds) ratio has started to favor bonds.

Leveraged ETFs (21 Nov 11): FAZ

Look for a bullish market where a rise in the price of the stock is anticipated.

Direxion Financial Bear 3X (FAZ) $46.33

Profit Target (20%): $55.60 

Trailing-Stop (ATR x 2): $7.44

Traditional ETFs (21 Nov 11): TLT

Look for a bullish market where a rise in the price of the stock is anticipated.

iShares 20+ Year Trea Bond (TLT) $119.34

Profit Target (15%): $137.25 

Trailing-Stop (ATR x 2): $4.16

Long Call (21 Nov 11): TLT

This strategy is used when you anticipate an increase in the price of the stock.

TLT  $119.34

Buy to Open (1) Jan 12 120 C @ $5.25 

Net Debit: $5.25 ($525.00)

Profit Target (50%): $7.90 ($790.00)

Stop-Loss Point (50%): $2.65 ($265.00)

Long Put (21 Nov 11): XLF

This strategy is used when you anticipate a fall in the price of the stock. 

XLF  $12.50

Buy to Open (1) Jan 12 13 P @ $1.18 

Net Debit: $1.18 ($118.00)

Profit Target (50%): $1.80 ($180.00)

Stop-Loss Point (50%): $0.60 ($60.00)

Bull Call Spread (21 Nov 11): USO

Look for a bullish market where you anticipate a modest increase in the price of the stock above the price of the short Call option.

USO $37.82

Buy to Open (1) Dec 11 35 C @ $3.45

Sell to Open (1) Dec 11 40 C @ $0.67 

Net Debit: $2.78 ($278.00)

Breakeven: $37.78

Max. Profit: $222.00

Pct Return: 79.9% (27 days)

Bear Put Spread (21 Nov 11): EFA

Look for a bearish market where you anticipate a modest decrease in the price of the stock below the strike price of the short Put option.



EFA  $49.40

Buy to Open (1) Dec 11 53 P @ $4.15

Sell to Open (1) Dec 11 48 P @ $1.48 

Net Debit: $2.67 ($267.00)

Breakeven: $50.33

Max. Profit: $233.00

Pct Return: 87.3% (27 days)

Options Safari (14 Nov 11): AMZN Calendar

SPY:TLT Ratio Chart (14 Nov 11): SPY

The SPY:TLT (Stocks v. Bonds) ratio continues to favor stocks.

Leveraged ETFs (14 Nov 11): UCO

Look for a bullish market where a rise in the price of the stock is anticipated.

ProShares Ultra Crude Oil (UCO) $41.61

Profit Target (20%): $50.00 

Trailing-Stop (ATR x 2): $3.66

Traditional ETFs (14 Nov 11): FXI

Look for a bullish market where a rise in the price of the stock is anticipated.

iShares China 25 Index (FXI) $37.80

Profit Target (15%): $43.50 

Trailing-Stop (ATR x 2): $2.62

Long Call (14 Nov 11): USO

This strategy is used when you anticipate an increase in the price of the stock.

USO  $38.21

Buy to Open (1) Jan 12 38 C @ $2.75 

Net Debit: $2.75 ($275.00)

Profit Target (50%): $4.15 ($415.00)

Stop-Loss Point (50%): $1.40 ($140.00)

Long Put (14 Nov 11): EFA

This strategy is used when you anticipate a fall in the price of the stock. 

EFA  $51.80

Buy to Open (1) Jan 12 51 P @ $3.05 

Net Debit: $3.05 ($305.00)

Profit Target (50%): $4.60 ($460.00)

Stop-Loss Point (50%): $1.55 ($155.00)

Bull Call Spread (14 Nov 11): FXI

Look for a bullish market where you anticipate a modest increase in the price of the stock above the price of the short Call option.

FXI  $37.80

Buy to Open (1) Dec 11 35 C @ $3.75

Sell to Open (1) Dec 11 40 C @ $0.81 

Net Debit: $2.94 ($294.00)

Breakeven: $37.94

Max. Profit: $206.00

Pct Return: 70.1% (33 days)

Bear Put Spread (14 Nov 11): EFA

Look for a bearish market where you anticipate a modest decrease in the price of the stock below the strike price of the short Put option.

EFA  $51.80

Buy to Open (1) Dec 11 56 P @ $5.00

Sell to Open (1) Dec 11 51 P @ $2.00 

Net Debit: $3.00 ($300.00)

Breakeven: $53.00

Max. Profit: $200.00

Pct Return: 66.7% (33 days)

Options Safari (7 Nov 11): SBUX Calendar

SPY:TLT Ratio Chart (7 Nov 11): SPY

The SPY:TLT (stocks v. bonds) ratio continues to favor stocks.

Momentum Stock (7 Nov 11): NUAN

A strategy that aims to capitalize on the continuance of existing trends in the market. 

Nuance Communications (NUAN) $26.30

Profit Target (20%): $31.60  

Trailing-Stop (ATR x 2): $1.92

Leveraged ETFs (7 Nov 11): ERX

Look for a bullish market where a rise in the price of the stock is anticipated.



Direxion Energy Bull 3X (ERX) $50.92

Profit Target (20%): $61.10  

Trailing-Stop (ATR x 2): $8.32

Traditional ETFs (7 Nov 11): FXI

Look for a bullish market where a rise in the price of the stock is anticipated.

iShares China 25 Index (FXI) $37.72

Profit Target (15%): $43.40 

Trailing-Stop (ATR x 2): $2.70

Long Call (7 Nov 11): XLE

This strategy is used when you anticipate an increase in the price of the stock.

XLE  $71.26

Buy to Open (1) Jan 12 72 C @ $4.95 

Net Debit: $4.95 ($495.00)

Profit Target (50%): $7.45 ($745.00)

Stop-Loss Point (50%): $2.50 ($250.00)

Long Put (7 Nov 11): TLT

This strategy is used when you anticipate a fall in the price of the stock. 

TLT  $116.48

Buy to Open (1) Jan 12 117 P @ $5.65 

Net Debit: $5.65 ($565.00)

Profit Target (50%): $8.50 ($850.00)

Stop-Loss Point (50%): $2.85 ($285.00)

Bull Call Spread (7 Nov 11): XLE

Look for a bullish market where you anticipate a modest increase in the price of the stock above the price of the short Call option.

XLE  $71.26

Buy to Open (1) Dec 11 70 C @ $4.25

Sell to Open (1) Dec 11 75 C @ $1.44 

Net Debit: $2.81 ($281.00)

Breakeven: $72.81

Max. Profit: $219.00

Pct Return: 77.9% (40 days)

Bear Put Spread (7 Nov 11): TLT

Look for a bearish market where you anticipate a modest decrease in the price of the stock below the strike price of the short Put option.

TLT  $116.48

Buy to Open (1) Dec 11 120 P @ $6.15

Sell to Open (1) Dec 11 115 P @ $3.10 

Net Debit: $3.05 ($305.00)

Breakeven: $116.95

Max. Profit: $195.00

Pct Return: 63.9% (40 days)