Friday, June 27, 2008

Wanna Swim against the current ? - IWM RUT DIA XSP

IWM - August BULL PUT Spread: Analyze to Buy 59 Put & Sell 62 Put for a credit of .35 for a 3 dollar spread for a 10 - 12% return if IWM stays above 62.

RUT - Analyze a position buying August 790 Call around 1.45 and wait for RUT to bounce so as to sell as call against it or merely sell it on rebound.

DIA - Holding a position in each, March 2009 114 Call AND Jan 2010 110 Call look attractive given the beating it is taking & expected rebound in future.

XSP - March 2009, 130 Call looks good too.

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