TradeKing Midday Market Call Recap - SPX, MMM
Recap for Tuesday, February 17th by Kevin Corrigan
Did you miss Tuesday’s TradeKing Midday Market Call? Here’s a quick recap. Don’t miss another session, register here today!
Analysis of S&P 500 from
Michael Kahn:
The Chart of the Day is 3M Company (MMM) -
Analysis of MMM Volatility Chart and Dividends from TradeKing’s Brian Overby -
Technical tools used:
Brian Overby’s paper trade strategies based on Michael’s analysis -
Brian’s Paper Trade - Fig Leaf
- Buy 1 Jul 17 2015 MMM 155 Call
- Sell 1 Apr 17 2015 MMM 175 Call
- 150 Days to expiration for the July 17th contract
- 59 Days to expiration for the Apr 17th contract
- Net Bid 12.83, Mid 13.21, Ask 13.59 for the strategy
- Net Debit is 13.59 if we pay the Ask
- Maximum potential loss: $13.59
- Maximum potential gain is limited to the premium received for the sale of the April call plus the performance of the July call.
*NOTE: You can’t precisely calculate potential profit at initiation of this strategy, because it depends on how the July call performs at the expiration of the April contract.
Total commission to enter this trade is $6.25
Brian’s Paper Trade - Fig Leaf
- Buy 1 Jan 15 2016 MMM 155 Call
- Sell 1 Apr 17 2015 MMM 175 Call
- 332 Days to expiration for the Jan 15th contract
- 59 Days to expiration for the Apr 17th contract
- Net Bid 16.13, Mid 16.34, Ask 16.54 for the strategy
- Net Debit is 16.54 if we pay the Ask
- Maximum potential loss: $16.54
- Maximum potential gain is limited to the premium received for the sale of the April call plus the performance of the January (LEAPS) call.
*NOTE: You can’t precisely calculate potential profit at initiation of this strategy, because it depends on how the January call performs at the expiration of the April contract.
Total commission to enter this trade is $6.25
**NOTE: option prices are given as a per contract amount. Multiply loss and gain figures by 100 shares and by the number of contracts traded to determine the amount of the full potential loss or full potential gain. No additional calculations are needed to determine commission costs.
TradeKing Options Tools used:
- Detailed Quote
- TradeKing Options Pricing Calculator
- TradeKing Probability Calculator
additional risks and multiple commissions
All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. TradeKing provides self-directed investors with discount brokerage services, and does not make recommendations or offer investment, financial, legal or tax advice. You alone are responsible for evaluating the merits and risks associated with the use of TradeKing's systems, services or products.TradeKing selects and defines as All-Stars certain independent market commentators who are recognized industry personalities and experienced traders and who provide timely market commentary via the TradeKing All-Star Blog and/or TradeKing Webinars. Each All-Star commentator's bio, related qualifications and disclosure as to their relationship with TradeKing can be found on the All-Star Roster. The selection of All-Star commentators is solely based on the quality and style of the content provided. TradeKing does not measure, endorse, or monitor the performance or correctness of any statement or recommendation made by independent All-Stars commentators. Supporting documentation for any claims made by TradeKing All-Stars will be supplied upon request by the author of the post, who is solely responsible for the views expressed. Contact TradeKing All-Stars by sending an email message to TKallstars@tradeking.com.(c) 2015 TradeKing Group, Inc. All rights reserved.