The Volatility Trader
105 W. Monument Street
Baltimore, MD 21201
Monday, April 17, 2006
#101
ACTION TO TAKE:
Buy the Tiffany (NYSE: TIF) May $40 Call, TIF EH, at $0.25
Buy the Tiffany May $35 Put, TIF QG at $0.75
Buy the Agilent Technologies (NYSE: A) May $37.50 Call, A EU, at $1.
Buy the Agilent Technologies May $35 Put, A QG, at $0.50
READ BEFORE INVESTING - Reminders for Every Trade:
* Don’t cherry pick the list. Do each trade as listed.
* Do equal dollar amounts in each option.
* Follow the 50% stop loss to the letter.
* Stay on top of the emails and follow the instructions to the letter.
* The prices for each option were checked with a broker before I sent them. Use limit orders for all of your buys. If you can’t get them at the recommended price, don’t buy them. I will adjust the buy price as necessary or cancel the recommendation.
* You will be notified by email when to sell.
The Amkor Technology (NYSE: AMKR) play was exceptionally strong Thursday. The call recovered very nicely from its dip, and the put is only five cents below our purchase price. However, if we don’t see some significant movement in the stock toward $10 in the next week, we may be forced to exit this play. I am concerned about our time value eroding.
The market has been doing its slip-and-slide routine lately, which has resulted in little or no price movement. This doesn’t bode well for our straddles and strangles, but this week’s picks have very strong technicals and solid fundamentals. We should see some action.
As always, I have checked the recommended prices for today’s picks with an option broker before releasing them. Please don’t chase these. If the price moves out of our buy range, I will adjust the buy price or cancel the trade.
If you have any questions, contact VIP Trading Services at 888.570.9830, Neil Fern, the RMB Group, at 800.831.3114, or Ron McCoy, at Gunn Allen, at 800.720.6576.
Good Trading,
Steve McDonald
Current Portfolio:
Option: Amkor Tech. June $10 call QEL FB
Price: $0.60
Comment: Hold
Option: Amkor Tech. June $7.60 put QEL RU
Price: $0.45
Comment: Hold
Bio:
Before joining The Mt. Vernon Options Club, Steve was honing the skills that make him an invaluable resource for our members. For 10 years, Steve was a professional broker with a prestigious Baltimore based full-service brokerage where he specialized in helping retired and semi-retired investors create and preserve wealth. His firm recognized his work with the elderly when he was selected as a representative to the Clinton Administration’s Council on Aging. Steve is a regular contributor to the Smart Options E-Report and Accelerated Profits Report.
Copyright – 2006 Mt Vernon Options Club. Mt Vernon Options Club does not act as an investment advisor or advocate the purchase or sale of any security or investment. Mt Vernon Options Club expressly forbids its writers from having a financial interest in any security recommended to its readers. All of our employees and agents must wait 24 hours after an Internet publication prior to following an initial recommendation. And for hard-copy-only publications, 72 hours after the publication is mailed. Investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Mt Vernon Options Club provides its members with unique opportunities to build and protect wealth, globally, under all market conditions. The executive staff, research department and editors who contribute to recommendations are proud of the reputation Mt Vernon Options Club has built since its inception in 1984. We believe the advice presented to its members in our published resources and at our meetings and seminars is the best and most useful available to global investors today. The recommendations and analysis presented to members is for the exclusive use of members. Copying or disseminating any information published by Mt Vernon Options Club, electronic or otherwise is strictly prohibited. Members should be aware that investment markets have inherent risks and there can be no guarantee of future profits. Likewise, past performance does not assure future results. Recommendations are subject to change at any time.
