TradeKing Midday Market Call Recap - $SPX & $BIIB
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:
Brian’s First Paper Trade -
- 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:
- TradeKing Options Pricing Calculator
- TradeKing Probability 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.
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.
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.
The projections or otherinformation generated by TradeKing's tools regarding the likelihood of variousinvestment outcomes are hypothetical in nature, do not reflect actualinvestment results and are not guarantees of future results. The calculationsdo not take into consideration all costs, such as commissions and margininterest which may impact the results shown. It is the user's soleresponsibility to select the criteria to enter in the TradeKing's tools, or tochoose among the predefined screens, and to evaluate the merits and risksassociated with the use of the tools before making any investment decisions.TradeKing is not responsible for any losses that occur from such investmentdecisions.
TradeKing Webinars and All-StarBlogs are provided for educational and informational purposes only. All investmentsinvolve risk, losses may exceed the principal invested, and the pastperformance of a security, industry, sector, market, or financial product doesnot guarantee future results or returns. TradeKing provides self-directedinvestors with discount brokerage services, and does not make recommendationsor offer investment, financial, legal or tax advice. You alone are responsiblefor evaluating the merits and risks associated with the use of TradeKing'ssystems, services or products.
TradeKing selects and defines asAll-Stars certain independent market commentators who are recognized industrypersonalities and experienced traders and who provide timely market commentaryvia the TradeKingAll-Star Blog and/or TradeKing Webinars. EachAll-Star commentator's bio, related qualifications and disclosure as to theirrelationship with TradeKing can be found on the All-StarRoster. The selection of All-Star commentators is solely based on thequality and style of the content provided. TradeKing does not measure, endorse,or monitor the performance or correctness of any statement or recommendationmade by independent All-Stars commentators. Supporting documentation for anyclaims made by TradeKing All-Stars will be supplied upon request by the authorof the post, who is solely responsible for the views expressed. ContactTradeKing All-Stars by sending an email message to TKallstars@tradeking.com.
? 2015 TradeKing Group, Inc. Allrights reserved. Securities offered through TradeKing Securities, LLC, member FINRA and SIPC.