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Options Trading

TradeKing Midday Market Call Recap - $SPX & $BIIB

Options TradingTradeKing



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Analysis of S&P 500 fromMichael Kahn with



The Chart of the Day is Biogen(BIIB):

Analysis of BIIB Volatility Chartand Dividends from TradeKing’s



Brian Overby’s BIIB paper trade strategiesbased on Michael’s analysis:

shortcall spreads

Brian’s First Paper Trade -

ShortCall Spread

- Net Credit is 1.10 if we get itat the mid, though note this is not always possible

- Maximum potential loss: $3.90

- Maximum potential gain: $1.10

- Total commission to enter thistrade is $6.25

Brian’s Second Paper Trade - ShortCall Spread

- Buy 1 June 5th 2015 BIIB 397.50Call

- Sell 1 June 5th 2015 BIIB395.00 Call

- 3 days to expiration

- Net Bid 0.20 credit, Mid 0.40credit, Ask 0.60 credit for the strategy

- Net Credit is 0.40 if we get itat the mid, though note this is not always possible

- Maximum potential loss: $2.10

- Maximum potential gain: $0.40

- 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:

- DetailedBIIB Quote

- ShortCall Spread

- 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!


Brandon Wilson

TradeKing Group, Inc.

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

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

At the time of publication and inthe preceding month, TradeKing and/or Michael Kahn did not have ownershipgreater than 1% in any stocks mentioned; did not have any other actual,material conflict of interest known at the time of publication; have notreceived compensation from a public offering nor from investment banking servicesrelated to any companies mentioned within the past 12 months, nor expect toreceive any in the next 3 months; nor engaged in market making in thesecurities mentioned.

System response and access timesmay vary due to market conditions, system performance, and other factors.

Any strategies discussed andexamples using actual securities and price data are strictly for illustrativeand educational purposes only and are not to be construed as an endorsement,recommendation, or solicitation to buy or sell securities. Past performance isnot a guarantee of future results. Consider the following when making aninvestment decision: your financial situation, your risk profile andtransaction costs.

Market timing is a complexinvestment strategy which involves risk and may incur additional commissioncosts.

While implied volatilityrepresents the consensus of the marketplace as to the future level of stockprice volatility, there is no guarantee that this forecast will be correct.

TradeKing charges $4.95 for onlineequity and option trades, add 65 cents per option contract. TradeKing chargesan additional $0.35 per contract on certain index products where the exchangecharges fees. See our FAQ for details. TradeKing adds $0.01 per share on theentire order for stocks priced less than $2.00. See our Commissions + Fees page forcommissions on broker-assisted trades, low-priced stocks, option spreads, andother securities.

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