S&P option trade recommendations

Closed out October put spread

2008-10-10T07:00:00.000-07:00

We mentioned that we would be closing out the October 850 – 825 put spread on the S&P futures if the value got to 4.5 points. Yesterday we closed out this position.

Selling put spreads on S & P 500 Futures for October

2008-10-08T09:25:00.000-07:00

The end of month September options expired worthless on September 30, 2008.

The S&P index has dropped over 18 percent since September 29th 2008. Although we do not think we are finished to the downside overall, we do feel that a rebound is becoming more likely and that we are oversold in the short term. Currently the S&P December futures are trading around 980. We are looking at selling the S&P October 850 put and buying the S&P October 825 put to limit our risk on the trade for a credit of 2.5 points or $625 less commission and fees. This position is 13% out of the money and expires in 10 days. We are looking at support around the 950 level.

Risk on the trade is 22.5 points (850-825 =25 minus 2.5 of collected premium = 22.5.) or $5625 maximum risk plus commission and fees. We would look to close out the position if it gets to 4.5 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.

Selling EOM September Put spreads on S&P 500

2008-09-18T11:33:00.000-07:00

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.

Closed positions on S&P credit spreads

2008-09-16T06:52:00.000-07:00

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.

Selling put spreads on S & P 500 Futures

2008-09-04T12:14:00.000-07:00

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.

Selling September call spreads on S&P Futures

2008-09-02T10:48:00.000-07:00

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.

August End of Month Credit Spreads on S&P Futures

2008-08-18T12:19:00.000-07:00

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.

August expiration on S & P Futures options

2008-08-15T13:52:00.000-07:00

The S & P 500 September contract has had a 51 point high to low within the past 10 days. Since we placed the 1325 -1345 August call spread recommendation on August 6, 2008, the S & P 500 September futures have been from 1292, when we placed the trade, to a high of 1313, to a low of 1262, and settled today, August 15, 2008 at 1299.70.On August 6th we stated that "We recommend selling the August 1325 call on the S & P September futures contract and buying the August 1345 call for a collected premium of 1.80 points or $450 less commission and fees. The spread is 3% out of the money, and we feel will not be reached within the next 10 days."The 1325 -1345 August call spread recommendation on August 6, 2008, on theS & P 500 September futures expired worthless. To discuss setting up a monthly S&P Income generating program for you, give us a call

Stephen Zielinski
Mercury Capital Management, LLC
908-787-2089
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.

Selling August call spreads on S&P Futures

2008-08-06T16:01:00.000-07:00

Yesterday we had the FOMC announce that they were leaving interest rates at 2%, and more importantly, their statement was
“Although downside risks to growth remain, the upside risks to inflation are also of significant concern to the Committee. The Committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability.”
This lead the markets to continue their upside move for the day. As today unfolded, we looked to see if yesterday’s move was again a one day wonder, or if there was support for a further rise. Although the markets opened lower this morning, we did see a gain to the upside in the major indexes.

In analyzing the daily chart and technical indicators on the S & P September futures, we believe the rally is losing strength in the short term. Although price has moved higher in the past few days, we are not seeing the same in the Relative Strength Index, (RSI) (see the arrows on the chart).
We recommend selling the August 1325 call on the S & P September futures contract and buying the August 1345 call for a collected premium of 1.80 points or $450 less commission and fees. The spread is 3% 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 18.2 points or $4550 plus commission and fees. (1345 - 1325 = 20 points -1.8 premium collected = 18.2 points.)We would look to risk $600 on the position. Return on risk would be 9.89% 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.

July end of month option expiration on S & P 500 futures

2008-07-31T13:08:00.000-07:00

The S & P 500 September contract has had a 60 point high to low within the past 10 days. Since we placed the 1310 -1330 July end of month call spread recommendation on July 21, 2008, the S & P 500 September futures have been from 1261, when we placed the trade, to a high of 1291, to a low of 1231.60, and settled today, July 31th, 2008 at 1266.

On Friday July 18th we stated that "We are looking for the market to possibly continue its rise for another 1% to 2 %. We will look to sell the end of month call spreads on the July contract within the next few days."

The 1310 -1330 July end of month call spread recommendation on July 21, 2008, on the
S & P 500 September futures expired worthless.

We will wait till after the jobs report on Friday, August 1, 2008 to make our next recommendation.

To discuss setting up a monthly S&P Income generating program for you, give us a call
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.

Selling EOM July call spread on S & P 500 futures

2008-07-21T13:47:00.000-07:00

On Friday we stated that "We are looking for the market to possibly continue its rise for another 1% to 2 %. We will look to sell the end of month call spreads on the July contract within the next few days."

The market opened higher today, July 21, 2008 and traded up to 1268 but seemed to lose steam, and headed south down to 1255. At the close the market climbed back up around 1261.

We recommend selling the 1310 - 1330 call spread for 1.2 points or $300, 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 18.8 points or $4700 plus commission and fees. (1330 - 1310 = 20 points -1.2 premium collected = 18.8 points.)

We would look to risk $600 on the position. Return on risk would be 6.3% in 10 days if options expire worthless.
To discuss setting up a monthly S&P Income generating program for you, give us a call.
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.

July option expiration on S & P 500 futures

2008-07-18T13:33:00.000-07:00

We have had a wild ride the last 3 weeks. Since we placed the 1180-1160 July put spread recommendation on July 1, 2008, the S & P 500 September futures have been from 1261, when we placed the trade, to a high of 1293, to a low of 1201, and settled today, July 18th, 2008 at 1260.

As we had mentioned on July 1, 2008, "Although we might see a further slide in the market, we feel that we will see a rise from the recent low. We believe that the S&P 500 will not drop more than 6 % or below 1180, within the next 23 days."

The 1180-1160 put spread expired worthless today. Value of the put spread when the market was at a low of 1201 was less than our risk parameter of 2.5 times what we have collected in premium.

We are looking for the market to possibly continue its rise for another 1% to 2 %. We will look to sell the end of month call spreads on the July contract within the next few days.

To discuss setting up a monthly S&P Income generating program for you, give us a call
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.

Selling put spreads on S & P 500 Futures

2008-07-01T10:34:00.001-07:00

We have seen the major indexes slide from their mid May highs to the current lows. The S&P 500 was trading around 1440 on May 19th, to the recent low today, July 1, 2008 of 1261. This is a drop of over 12% in the past 6 weeks.

We are looking for a short term bottom in the market. Although we might see a further slide in the market, we feel that we will see a rise from the recent low. We believe that the S&P 500 will not drop more than 6 % or below 1180, within the next 23 days. We recommended selling the July 1200 put on the September S&P Index, and buying the 1160 put to limit our risk to collect 2 points for the put spread, $500 less commission and fees.Each point on the S&P is worth $250. Initial Margin on the trade is less than $3500. Maximum risk is the difference between the option sold and the option bought which is 20 points on the put side; (1180 – 1160 = 20) less the points of collected premium; (20 – 2 = 18 x $250 = $4500 plus commission and fees).If the options expire worthless, your return on initial margin is 14% less commission and fees in 23 days. Return on risk is 10% in 20 days. To discuss setting up a monthly S&P Income generating program for you, give us a call Stephen ZielinskiMercury Capital Management, LLCWebsite http://www.mercury-capital-management.comThere 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.