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Update 4 - Our Trade on the DIA Option

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,

 

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