CMG Put Spread for Dec OpMo

Posting: 4 Dec 07

ZACK had 4 buy stocks today which I used the Jon Schiller filter to select one potentially profitable Put Spread for the remaining 2 and half weeks of the December Option Month. The underlying stock is: CMG, a Mexican fast food chain. The Put Spread is:

Buy 4 Put 125 (CMG XR) & Sell 4 Put 130 (CMG XE) at a Spread value of 1.45, Initial Credit = $275, Margin = $2,000, % Return on Margin = 28.29%

If CMG = 136.05 at 10AM PST today closes above 130 on Friday 21 Dec 07, then the profit for this trade would be = Initial Credit, or $275 net with the TradeKing commission deducted when position is executed.

Jon Schiller’s HseZackFilter.xls Software which is included free with my SelfAdapDTE4.xls software package.

Good trading for the Dec 07 option month,

Jon Schiller, PhD, Author