Sunday, January 8, 2012

Fixed Income ETFs (9 Jan 12): TMV

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

Direxion 20+ Yr Treas Bear 3X (TMV) $72.16
Profit Target (15%): $83.00 
Trailing-Stop (10%): $64.95

Bull Call Spread (9 Jan 12): QQQ

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.

QQQ  $57.81
Buy to Open (1) Feb 12 55 C @ $3.50
Sell to Open (1) Feb 12 60 C  @ $0.49 
Net Debit: $3.01 ($301.00)
Breakeven: $58.01
Max. Profit: $199.00
Pct Return: 66.1% (40 days)

Bear Put Spread (9 Jan 12): SDS

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.

SDS  $18.60
Buy to Open (1) Feb 12 21 P @ $2.85
Sell to Open (1) Feb 12 16 P @ $0.06 
Net Debit: $2.79 ($279.00)
Breakeven: $18.21
Max. Profit: $221.00
Pct Return: 79.2% (40 days)