Tuesday, February 16, 2010

FEB OPX WEEK PLAYS

I am hoping for a pullback in SPY to 108-108.50 before OPX Fri. The 60 min RSI is slightly above 70. Some low risk OPX plays-

1. BIDU Feb 500/510 bear call spread for a credit of 1.75 or above. If BIDU rallies towards 500 tomorrow, the credit will be 2.50 or above. BIDU will close below 500 on OPX friday based on O.I

2. POT Feb 115/120 bear call spread for a credit of 1.00 or above. POT will close below 115 on OPX Fri based on O.I

3. AAPL Feb 210/220 Bear call spread for a credit. AAPL will close below 210 on OPX Fri based on OI

4. SPY Feb 111/110 or 110/109 put spread. The max upside on SPY this week is 110.4-110.8 IMO (50 MA on the daily is at 110.8). Max return on those put spreads are approx 60% and 130% respectively.

GLTA
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