Safehaven | Update 4 - Our Trade on the DIA Option

July 20, 2008

Update 4 - Our Trade on the DIA Option
by Patrice Johnson

7/20/2008 2:45:34 PM

Greetings J.E.D.I.,

Welcome to The J.E.D.I. Trader.

To learn more about my Stocks, Options & Options on Futures Trading Service, click here.

GENERAL TREND OF THE MARKET: DOWN

STOCK, OPTION, OR FUTURE UNDER ANALYSIS: DIA

CLOSING PRICE AS OF JULY 18, 2008: $114.95

EXPIRATION: DECEMBER 20, 2008

This e-mail is to alert you to maintain your position on the DIA option.

Our breakeven point before this trade losses money would be as follows:

Our breakeven for selling one December 2008 DIA 105 Put Option at the bid price of $2.80 is $2.58. (2.8x100 minus 21.48 (commissions) divided by 100) That is we will breakeven when the premium on this put option is $2.58. NOTE: This particular put option position will begin to lose money if DIA falls below 102.42. (105 minus 2.58)

CLOSING PRICE OF DECEMBER 2008 DIA 105 PUT OPTION (As of July 18, 2008): $3.35

Next week, we could witness DIA trading in a price range between $108 and $119.

My fellow J.E.D.I.,

Please see 2 year weekly chart below for the DIA dated July 18, 2008.

So, maintain position. And watch the following price level for DIA: $102.42

Good Luck!

And may the force of volatility will be with you.

Best Regards,

Patrice V. Johnson
The J.E.D.I Way

DISCLAIMER:
The information contained in this report and future reports and newsletters contain independent analyses, statements, opinions, beliefs, and strategies that are mine and not those of the company and is made available to anyone interested in my analyses, statements, opinions, beliefs, and strategies made on stocks, options, futures, or options on futures. Information, analyses, statements, options, beliefs, and strategies in this e-mail are for informational purposes only. I do not represent that the information, analyses, statements, opinions, beliefs, and strategies contained in this report or future reports and newsletters are accurate or complete. Internet subscribers and online readers should not rely upon this information for any purpose without seeking the expertise of a professional investment advisor, professional tax consultant and/or broker. The information contained in this report and future reports and newsletters is provided only as general information that may or may not reflect the most current developments; accordingly, information, analyses, statements, opinions, beliefs, and strategies contained in this report and future reports and newsletters is not promised or guaranteed to be correct or complete. The analyses, statements, information, opinions, beliefs, and strategies contained in this report is not a recommendation to buy, sell, or hold any stock, option, future, or option on future. Nor are the statements, analysis, information, opinions, beliefs, and strategies contained in this report or in future reports and newsletters an offer for any stock, option, future, or option on future or solicit the offer of any stock, option, future, or option on future of any company. I will trade securities of the companies on which I report during the term of engagement. Patrice V. Johnson, expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this report, and future reports, and newsletters. I assume no responsibility for your trading and investment results. You assume all responsibility for your trading and investment results. You may send me e-mail to Patrice@Stockbarometer.com . However, you should not send confidential or sensitive information via e-mail as the security of the Internet e-mail is uncertain. By sending sensitive or confidential e-mail messages that are not encrypted, you accept the risk of such uncertainty and possible lack of confidentiality over the Internet. I do not necessarily endorse, and is not responsible for, any third-party content that may be accessed through this report, and future reports, and newsletters.

Important Disclosure
Futures, Options, Mutual Fund, ETF and Equity trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to buy/sell Futures, Options, Mutual Funds or Equities. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this Web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

Performance results are hypothetical. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as a lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

Investment Research Group and all individuals affiliated with Investment Research Group assume no responsibilities for your trading and investment results.

Investment Research Group (IRG), as a publisher of a financial newsletter of general and regular circulation, cannot tender individual investment advice. Only a registered broker or investment adviser may advise you individually on the suitability and performance of your portfolio or specific investments.

In making any investment decision, you will rely solely on your own review and examination of the fact and records relating to such investments. Past performance of our recommendations is not an indication of future performance. The publisher shall have no liability of whatever nature in respect of any claims, damages, loss, or expense arising out of or in connection with the reliance by you on the contents of our Web site, any promotion, published material, alert, or update.

For a complete understanding of the risks associated with trading, see our Risk Disclosure.