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TradeKing Midday Market Call Recap - SPX, USB

Options Trading TradeKing

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Recap for Tuesday, September 9th by Kevin Corrigan here Analysis of S&P 500 from  QuickTakesPro’s Michael Kahn -

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The Chart of the Day is US Bancorp (USB) - Analysis of USB Volatility Chart and Dividends from TradeKing’s Brian Overby

Technical Tools Used:

Moving Averages

- Trendlines


Brian Overby’s paper trade strategies based on Michael’s analysis - 

Michael's analysis is bearish. Brian discusses two Long Puts as paper trades. A shorter term,  one expiring in September and a longer term, more conservative one expiring in October. Both contracts will reflect the dividend in price of the contract. The anticipated earnings report is after the October expiration date. 

Brian’s Paper Trade - Long Put (shorter term more speculative)


- Buy 1 Sept 26 2014 USB 42.50 Put

- 17 Days to expiration

- Bid 1.10, Ask 1.13 for the call

- Debit is $1.13

- Maximum potential loss: $1.13
- Maximum potential gain is $41.37 if the stock goes to zero (not likely to happen) 


Total commission to enter this trade is $5.60


Brian’s Paper Trade - Long Put (longer term more conservative)

- Buy 1 Oct 18 2014 USB 41 Put

- 39 Days to expiration

- Bid 0.48, Ask 0.52 for the call

- Debit is $0.52

- Maximum potential loss: $0.52
- Maximum potential gain is $40.48 if the stock goes to zero (not likely to happen)

Total commission to enter this trade is $5.60



TradeKing Options Tools used:

- TradeKing Long Put

- TradeKing Volatility Charts

- TradeKing Options Pricing Calculator

- TradeKing P&L Calculator

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