We are seeing a continuation to the liquidation from the past few days on the major indexes. Currently the S&P December 08 futures are trading around 1150. We are looking for the market to bounce off 1140 level. We do not think the market will fall another 10% from here or down to 1020 by the end of the month. We are looking to sell the end of month 1020 SP put for September and buy the 1000 put to limit our risk on the trade. We are looking to collect 2 points or $500 less commission and fees for this position. Risk on the trade is 20 points (1020-1000=20 minus 2 of collected premium = 18.) or $4500 maximum risk plus commission and fees. We would look to close out the position if it gets to 4 points in value.
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.
Thursday, September 18, 2008
Tuesday, September 16, 2008
Closed positions on S&P credit spreads
Yesterday was an ugly day on the markets. With the bankruptcy announcement of Lehman and Merrill being taken over by Bank of America, the indexes did not look good. After the open, the major indexes fought their way back up to the 61.8 % retracement to around 1237. On Friday the put spread value was worth .2 or $50. We closed out the put spread Monday for 1.0 points or $250. We had stated that The Federal Reserve has its FOMC meeting on monetary policy and interest rates September 16, 2008. We would look to close out these positions prior to the meeting.
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.
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.
Thursday, September 4, 2008
Selling put spreads on S & P 500 Futures
The S&P September futures are down 37 points today and are trading around 1238. The market has dropped 65 points in the past 3 days. The weekly unemployment report ahead of the monthly jobs report out tomorrow is the main weight on the major indexes. We feel that we might see a short term reversal after the report tomorrow. Although the market might fall further, we do not feel the market will drop another 6% in the next two weeks. We are looking to sell the September 1160 put and buy the 1140 put to limit our risk on the trade. We are looking to collect 1.5 points or $375 less commission and fees. Risk on the trade is 20 points (1160-1140=20 minus 1.5 of collected premium = 18.5) or $4625 maximum risk. We would look to close out the position if it gets to 4 points in value.
The call spread sold on September 2 is worth .2 points or $50. We would look to close this position out to lock in our profit prior to expiration. If we have the opportunity, we would look to sell a call spread to collect additional premium.
The Federal Reserve has its FOMC meeting on monetary policy and interest rates September 16, 2008. We would look to close out these positions prior to the meeting.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.
The call spread sold on September 2 is worth .2 points or $50. We would look to close this position out to lock in our profit prior to expiration. If we have the opportunity, we would look to sell a call spread to collect additional premium.
The Federal Reserve has its FOMC meeting on monetary policy and interest rates September 16, 2008. We would look to close out these positions prior to the meeting.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.
Tuesday, September 2, 2008
Selling September call spreads on S&P Futures
The major indexes are all rallying this morning. The S&P September futures are up 20 points to 1302. The rally is being helped by lower oil prices due to Hurricane Gustav not causing as much damage as what was expected in the Gulf region of the United States. We feel that this is a relief rally, and recommend selling the September 1360-1380 call spread for 1.4 points, or $350 less commission and fees. This spread is over 4% away from where the market is trading today. Although it looks like we are in an uptrend, we do not feel the market will reach 1360 by option expiration which is September 19, 2008.
Margin on the position is approximately $3500. Maximum risk is if the market goes above 1380 by expiration. Maximum risk is 20 points (1380-1360=20 less premium collected 1.4) =18.6 points plus commission and fees. We would look to close out the position if it went against us with a $500 stop loss, plus commission and fees. Return on risk would be over 7% less commission and fees within 17 days if options expire worthless.
The Federal Reserve has its FOMC meeting on monetary policy and interest rates September 16, 2008. We would look to close out these positions prior to the meeting.
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.
Margin on the position is approximately $3500. Maximum risk is if the market goes above 1380 by expiration. Maximum risk is 20 points (1380-1360=20 less premium collected 1.4) =18.6 points plus commission and fees. We would look to close out the position if it went against us with a $500 stop loss, plus commission and fees. Return on risk would be over 7% less commission and fees within 17 days if options expire worthless.
The Federal Reserve has its FOMC meeting on monetary policy and interest rates September 16, 2008. We would look to close out these positions prior to the meeting.
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.
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