Zacks.com Announces That the Experts at Option Tactics Highlight an Option for the Following Stock: Viacom.CHICAGO -- Jeff Carter Jeff Carter (born January 1, 1985 in London, Ontario) is a Canadian professional ice hockey center currently playing for the Philadelphia Flyers of the NHL. Playing career Jeff Carter began his hockey career with the Sault Ste. and his team at the Option Tactics newsletter believe that stocks will eventually break out into higher ground. Read about an option for Viacom (NYSE NYSE See: New York Stock Exchange :VIAB). Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=84 Highlights from the June 20th Featured Expert column by Jeff Carter include: Option Play Debit Spread Debit spread Applies to derivative products. Difference in the value of two options, when the value of the option bought exceeds the value of the one sold. One buys a "debit spread." Antithesis of a credit spread. to Buy -- Buy Viacom (NYSE:VIAB) Jan 35 Call sell VIA/B Jan 40 Call. The maximum profit potential with this position is 228%. Maximum profits will be realized if the stock is above $40.00, a 19.7% stock price gain, during the week prior to January 2006 options expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created . The break-even stock price is $36.40, a 9% gain. Viacom recently announced that it will spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. its assets to shareholders to create two separate publicly traded companies publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. , one a "growth' company and the other a "value" company. The move should allow management and also investors to focus more closely on the strengths of each individual company and in the process unlock value in Viacom's stock price. The spin-off is scheduled to be completed in the first quarter of 2006, after this debit spread expires. A debit spread is similar to buying an option, except you are using the simultaneous sale of another option to offset some of the cost. Debit spreads are not as volatile as buying options, which works both ways. The spread value will not decline as fast if the stock price falters, but also will not rise as fast in the event of a rally. Also, you are dealing with two different bid/ask prices, so a debit spread will take some time to "catch up" to your entry price. The objective is for the stock to be above the top leg of the spread as expiration approaches. Read Jeff Carter's commentary regarding stocks eventually breaking out into higher ground and receive additional information on the option trade above by clicking: http://at.zacks.com/?id=85 About Zacks Featured Experts Successful investing requires professional advice from knowledgeable experts who can help investors achieve their financial goals in good markets and improve their portfolios, especially in bad ones. That is why Zacks Investment Research Zacks Investment Research A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms. has assembled the best investment experts in the business to offer their powerful advisory newsletters on all the major investment topics: Stocks, Mutual Funds, Bonds, Options, Futures etc. Additional recommendations from Zacks.com Featured Experts are highlighted in the free investment newsletter, Profit from the Pros. Each issue highlights several Featured Experts in this free e-mail See Internet e-mail service. newsletter. Register for a free subscription to "Profit from the Pros" at: http://at.zacks.com/?id=86 About Zacks Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 to compile To translate a program written in a high-level programming language into machine language. See compiler. , analyze, and distribute investment research to both institutional and individual investors. The guiding principle behind Zacks work is the belief that investment experts, such as brokerage analysts and investment newsletter writers, have superior knowledge about how to invest successfully. The goal is to unlock these pros' profitable insights for individual investors hard-pressed to find this valuable information in one source. A free subscription to "Profit from the Pros" weekly e-mail newsletter provides the best way to use these experts' insights for more profitable investing. Register now for a free subscription to the Profit from the Pros newsletter at http://at.zacks.com/?id=87 Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Disclaimer (networking) disclaimer - Statement ritually appended to many Usenet postings (sometimes automatically, by the posting software) reiterating the fact (which should be obvious, but is easily forgotten) that the article reflects its author's opinions and not necessarily those of the : Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual to buy or sell any security. |
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