Issue No. 1
June 26, 2005
Options Strategist and Editor: Ike Iossif, President & CIO, Aegean Capital Group, Inc.
Trade #1
Company: Nastech Pharm. -Stock Symbol: NSTK
Suggested Trade: Long: Sep. 12.50 calls/Long: July 15 puts
Special Conditions/Other: NO
Comments:
NSTK broke above resistance at 12.50, and that gives us two upside targets, one at 16.5, and another one at 19.90. If it going to rally even up to the first target, it ought to do it within the next two-three weeks. Thus, we want to be long NSTK, however, we need to keep in mind that this is a rather temperamental stock that trades quite thinly. Consequently, we also want to have some downside protection.
Trading Strategy:
We will buy to open 10 of the Sept. 12.5 calls (symbol: QUHIV) and we will buy to open 10 of the July 15 puts (symbol: QUHSC)
P/L Analysis Powered By OptionVue:
Please note: The recommended minimum starting capital is $50,000.00.
Trade #2
Company: Lexmark Int'l.-Stock Symbol: LXK
Suggested Trade: Long: August 70 puts
Special Conditions/Other: NO
Comments:
LXK appears ready to embark on another leg to the downside, which would give us several downside targets from 65, all the way down to 58. Therefore, we want to have a bearish position on the stock via the purchase of puts.
Trading Strategy:
We will buy to open 5 of the Aug. 70 puts (symbol: LXKTN) and we will use a close above 67.5 by the stock, as our trigger point for a "loss stop" exit.
P/L Analysis Powered By OptionVue:
Please note: The recommended minimum starting capital is $50,000.00.
Trade #3
Company: St. Jude Medical-Stock Symbol: STJ
Suggested Trade: Long: July 40 calls
Special Conditions/Other: NO
Comments:
STJ has formed an "inverted head and shoulders" pattern, and on Friday it broke above the neck-line setting up an upside target of 47.5-48, which ought to be reached within the next 10-15 trading days. Therefore, we want to be long the stock via the purchase of calls.
Trading Strategy:
We will buy to open 10 of the July 40 calls (symbol: STJGH) and we will use a close below 40 by the stock, as our trigger point for a "loss stop" exit.
P/L Analysis Powered By OptionVue:
Please note: The recommended minimum starting capital is $50,000.00.
Trade #4
Company: Zebra Tech-Stock Symbol: ZBRA
Suggested Trade: Long: Aug. 45 puts
Special Conditions/Other: NO
Comments:
ZBRA has been in a well defined declining channel for the last 11 months. On Friday it reached channel resistance and it reversed violently to the downside. The first downside target is at 43, the second is at 40, and the third one is at 30. Thus, we want to be short the stock via the purchase of puts.
Trading Strategy:
We will buy to open 10 of the Aug. 45 puts (symbol: ZBQTI) and we will use a close above 46.5 by the stock, as our trigger point for a "loss stop" exit.
P/L Analysis Powered By OptionVue:
Please note: The recommended minimum starting capital is $50,000.00.