Morning Star Investment Strategies

Equity Calendar
Citigroup Inc. (C)
Buy the Sep 22.50 Calls & Sell the Jun 22.50 Puts

Opening Date: May 23, 2008
Opening Price: $1.01 per contract
Risk: $1,010.00 (10 contracts)
Duration: Approximately 4 months

This equity has had a pretty good down move and seems to finding some strong support.  It should hold around this level and probably float slowly higher.  Perfect for a calendar.

This can be rolled three times before closing.  Currently the rolls are trading for about a .50 cent credit each, so that would come to $1.50 give or take for a 1.01 purchase price.  So about 50% profit.
Of course if it gets out of hand then we will close this ahead of time.

This is the 2nd Equity Calendar for May.

Index Calendar
TR-Financial (XLF)
Buy the Sep 25Puts & Sell the Jun 25Puts

Opening Date: May 21, 2008
Opening Price: $.95 per contract
Risk: $950.00 (10 contracts)
Duration: Approximately 4 months

This is a great price for this trade. This can be rolled three times before closing.  Currently the rolls are trading for about a .40 cent credit each, so that would come to $1.20 give or take for a .95 purchase price.  So about 20% profit.
Of course if it gets out of hand then we will close this ahead of time.

This is the 2nd Index Calendar for May, and the 4th trade for the month.
  

Here is the new blog.  The purpose of this Blog is to allow a form of communication between customers and MSIS (Morning Star Investment Strategies).  You must create a login to post, but please feel free to do so.  Feel free to ask questions about current or new trades, strategies, market direction, etc.  We will try to answer all questions in a timely manner.

Thank you, and happy posting!!

-Frank