August End of Month Credit Spreads on S&P Futures

We recommend selling the August End of Month S & P 1345 - 1365 call spread for 1.7 points or $425, less commission and fees. The spread is 4% out of the money, and we feel will not be reached within the next 10 days. Margin on the position is less than $3500 and maximum risk is 18.3 points or $4575 plus commission and fees. (1345 - 1365 = 20 points -1.7 premium collected = 18.3 points.)

We also recommend selling the August End of Month S & P 1200 - 1180 put spread for 1.2 points or $300, less commission and fees. The spread is 5% out of the money, and we feel will not be reached within the next 10 days. Margin on the position is less than $3500 and maximum risk is 18.8 points or $4700 plus commission and fees. (1200 - 1180 = 20 points -1.2 premium collected = 18.8 points.)

We are looking for the market to stay within this 145 point range within the next 10 days.

We would be collecting a combined 2.9 points or $725 less commission and fees. We would look to risk $800 or 3.2 points on the overall position. Return on risk would be over 12% in 10 days if options expire worthless. To discuss setting up a monthly S&P Income generating program for you, give us a call. 908-787-2089
Stephen Zielinski

Mercury Capital Management, LLC

Website http://www.mercury-capital-management.com/
There is a risk of loss trading futures and options. Past performance does not necessarily indicate future results. Trade with risk capital only. Commodity trading is not appropriate for all investors. This recommendation is strictly the opinion of its writer and is intended solely for informative purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Futures and options trading involve risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. In no event should the content of this market letter be construed as an express or an implied promise, guarantee or implication by or from Mercury Capital Management that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance.