Still Afloat n Fishing ?

Oh well , are we still afloat. Given the volatility and the turmoil, it is best to stay on sidelines & settle existing positions.

However, there is a temptation to analyze the following low risk strategies that offer a good return & turn into a potential cash machine to sell positions every other month or every month.

1) FNM
BUY Jan 2010 Call , Strike = 5 ; Pay 7.05

Then either ride it or sell Short August 2008 Call, Strike 14 for credit of 2.00


2) XLF
BUY Jan 2010 Call , Strike = 10 ; Pay 9.20

Then either ride it or sell Short August 2008 Call, Strike 20 for credit of .90

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