Zacks.com Announces That the Experts at Ultimate Option Strategies Highlight Options for the Following Stocks: AMR Corp and AES Corp.CHICAGO -- Ken Trester and his team at the Ultimate Option Strategies newsletter say it is a good idea to keep most of your option-buying powder dry. Read about options for AMR (1) (Adaptive Multi-Rate) A variable rate speech codec selected by the 3GPP for the 3G evolution of the GSM cellphone system (WCDMA). Using the Algebraic CELP (ACELP) compression technology, AMR provides toll quality sound at transmission rates from 4.75 to 12. Corp (NYSE NYSE See: New York Stock Exchange :AMR) and AES Corp (NYSE:AES). Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=84 Highlights from the June 13th Featured Expert column by Ken Trester include: Put 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 AMR Corp (NYSE:AMR) Nov 12 Put and sell AMR Nov 8 Put. The spread price at Friday (6/10) close was $1.10. The maximum profit potential with this position is 227%. Maximum profits will be realized if the stock is below $8.00, a 41% stock price loss, during the week prior to November 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 $10.90, a 20% loss. AMR has had a nice rally recently but is in an overbought Overbought A technical analysis term describing a situation where a security has risen to such a price, usually on high volume, that an oscillator has reached its upper bound. range and could be headed for a correction. LEAP Debit Spread to Buy -- Buy AES Corp (NYSE:AES) Jan 2007 15 Call and sell AES Jan 2007 20 Call. The spread price at Friday (6/10) close was $2.00. The maximum profit potential with this position is 130%. Maximum profits will be realized if the stock is above $20.00, a 35% stock price gain, during the week prior to Jan 2007 options expiration. The break-even stock price is $17.00, a 15% gain. AES Corp. is a holding company that builds, acquires, owns and operates power generation and electricity distribution facilities worldwide. Trester and his team's contact believes the stock is undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. and has above-average earnings and cash flow growth prospects. His stock target price of 22 puts this debit spread in maximum profit mode. 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 (below the bottom for a put spread) as expiration approaches. Discover why Ken Trester is recommending to keep most of your option-buying powder dry and get much more information on the options 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 as·sem·ble v. as·sem·bled, as·sem·bling, as·sem·bles v.tr. 1. To bring or call together into a group or whole: assembled the jury. 2. 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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