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TradeKing Midday Market Call Recap - SPX, MMM

Options Trading TradeKing

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Recap for Tuesday, February 17th by Kevin Corrigan


Did you miss Tuesday’s TradeKing Midday Market Call? Here’s a quick recap. Don’t miss another session, register here today!

Analysis of S&P 500 from QuickTakesPro’s Michael Kahn:

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The Chart of the Day is 3M Company (MMM) -
Analysis of MMM Volatility Chart and Dividends from TradeKing’s Brian Overby -
Technical tools used:
 Moving Averages
Brian Overby’s paper trade strategies based on Michael’s analysis -
Fig Leaf

Brian’s Paper Trade - Fig Leaf

- Buy 1 Jul 17 2015 MMM 155 Call

- Sell 1 Apr 17 2015 MMM 175 Call

- 150 Days to expiration for the July 17th contract

-   59 Days to expiration for the Apr 17th contract

- Net Bid 12.83, Mid 13.21, Ask 13.59 for the strategy

- Net Debit is 13.59 if we pay the Ask

- Maximum potential loss: $13.59

- Maximum potential gain is limited to the premium received for the sale of the April call plus the performance of the July call.

*NOTE: You can’t precisely calculate potential profit at initiation of this strategy, because it depends on how the July call performs at the expiration of the April contract.

Total commission to enter this trade is $6.25

Brian’s Paper Trade - Fig Leaf

- Buy 1 Jan 15 2016 MMM 155 Call

- Sell 1 Apr 17 2015 MMM 175 Call

- 332 Days to expiration for the Jan 15th contract

-   59 Days to expiration for the Apr 17th contract

- Net Bid 16.13, Mid 16.34, Ask 16.54 for the strategy

- Net Debit is 16.54 if we pay the Ask

- Maximum potential loss: $16.54

- Maximum potential gain is limited to the premium received for the sale of the April call plus the performance of the January (LEAPS) call.

*NOTE: You can’t precisely calculate potential profit at initiation of this strategy, because it depends on how the January call performs at the expiration of the April contract.

Total commission to enter this trade is $6.25

**NOTE: option prices are given as a per contract amount. Multiply loss and gain figures by 100 shares and by the number of contracts traded to determine the amount of the full potential loss or full potential gain. No additional calculations are needed to determine commission costs.

TradeKing Options Tools used:

- Detailed Quote

TradeKing Fig Leaf

- TradeKing Volatility Charts

- TradeKing Options Pricing Calculator

- TradeKing Probability Calculator

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