SURVIVING THE GAME
OCTOBER 22, 2008
VOLUME 1 NUMBER 10



Purchased DIA NOV 2008 103 calls at $0.39. This covers our DIA NOV 92 straddle on the upside.

The market will continue to be volatile and we will see lots of action like today. We need to use days like today to purchase good quality equities we want to own.

Purchase 500 NUE ( Nucor ) here at $35.00 and sell 5 NUE April 2009 $45 calls at $3.50. This puts us long at $31.50 and obligated to sell at $45 in April if higher than that. That is downside protection plus a potential 42% profit gain. Exit both positions if NUE makes new lows below $26.30. NUE also has a 5%+ dividend and pays special dividends each quarter.NUE is top notch in the steel industry and worth the risk here at $35.00

Purchase 100 AAPL ( Apple ) here at $98.00 and sell 2 AAPL April 2009 $140 calls at $5.00 or better. This leaves us long AAPL at $88.00 and obligated to sell at $140.00 This is a ratio write meaning we are also obligated to deliver 100 shares at $140 in April, even if we are much higher. Of course if we are lower, the options expire worthless. Exit if AAPL makes new lows below $85.00. Apple reported blow-out numbers yesterday. Chart shows nice choppy action between $85 and $110.00, a good sign of a potential bottom. This is a leader in its industry and worthy of the risk to buy here.

Dave Knight
Editor
Surviving The Game