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TradeKing Midday Market Call Recap - $SPX & $SPLS

Options Trading TradeKing

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@BrianOverby @MNKahn  


Analysis of S&P 500 fromMichael Kahn with QuickTakesPro

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: The Chart of the Day is Staples(SPLS):




Analysis of SPLS Volatility Chartand Dividends from TradeKing’s
BrianOverby :

Brian Overby’s SPLS paper tradestrategies based on Michael’s analysis: LongStrangle LongStraddle Brian’s First Paper Trade - LongStrangle

- 45 days to expiration


- Net Bid 0.80, Mid 0.85, Ask0.90 for the strategy

- Net Debit is 0.85 if we get itat the mid, though note this is not always possible


- Maximum potential loss: $0.85

- Maximum potential gain:Potential profit is theoretically unlimited if the stock goes up. If the stockgoes down, potential profit may be substantial but limited to $15.15 (strike Aminus the net debit paid).


- Total commission to enter thistrade is $6.25



Brian’s Second Paper Trade - LongStraddle


- Buy 1 June 19th 2015 SPLS 16.00Call

- Buy 1 June 19th 2015 SPLS 16.00Put


- 10 days to expiration


- Net Bid 0.45, Mid 0.55, Ask0.65 for the strategy

- Net Debit is 0.55 if we get itat the mid, though note this is not always possible


- Maximum potential loss: $0.55

- Maximum potential gain: Potential profit is theoretically unlimitedif the stock goes up. If the stock goes down, potential profit may besubstantial but limited to $15.45 (strike price minus the net debit paid).


- Total commission to enter thistrade is $6.25


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


TradeKing Options Tools used:

- DetailedSPLS Quote

- LongStrangle

- LongStraddle

- TradeKing Volatility Charts

- TradeKing Options Pricing Calculator

- TradeKing Probability Calculator

- TradeKing P&L Calculator



Want solid market analysis andpotential trading ideas? Join Michael and Brian, as they analyze the marketduring this live online session. As an added bonus, a stock chart will becovered in detail each session accompanied by a potential option trade. Theevent is every Tuesday and begins at 12:00pm ET.

Registerhere for next week’s Midday Market Call!


Best,

Brandon Wilson

TradeKing Group, Inc.

www.TradeKing.com



Options involve risks and are notsuitable for all investors. Prior to buying or selling options, an investormust receive a copy of Characteristics and Risks of Standardized Options, sentto you in previous communication. Additional copies may be obtained by callingTRADEKING at 877-495-KING or by visiting www.TradeKing.com/ODD.


Multiple leg options strategiesinvolve additionalrisks, and may result in complex tax treatments. Please consult a taxadvisor.


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