HAPPY NEW YEAR - 2008!

Year 2007 has been busy with wedding preparation and hence no bandwith to concentrate on options trading. In this new year, I am going to be serious in this game and master the skills. Don't ever get complacent and stuck in the rat race. There is never a easy route to success.

My first paper trades in this new year : -

Strategy: Bull Put Spread
Buy a lower strike put and sell a higher strike put with the same expiration date.

1) J B HUNT TRANSPORT SERVICES INC (JBHT)
Sector: Transportation
Current price : 27.55
Implied Volatility : 41.28

Short Put Options
Symbol: .JHQNF
FEB 30 PUT ( 45 days expiration)
Premium: 3
Delta: -0.693

Long Put Options
Symbol: .JHQNE
FEB 25 PUT
Premium: 0.85
Delta: -0.22

Estimation
Credit:$2.15
Maximum Profit: 215.00
Maximumloss: 285.00
Breakeven: 27.85

2) SYNOPSYS INC. (SNPS)
Sector: Computer and Technology
Current price : 25.93
Implied Volatility : 26.19

Short Put Options
Symbol: .YPQNF
FEB 30 PUT ( 45 days expiration)
Premium: 3.90
Delta: -0.973

Long Put Options
Symbol: .YPQNF
FEB 25 PUT
Premium: 0.65
Delta: -0.311

Estimation
Credit:$3.25
Maximum Profit: 325.00
Maximumloss: 175.00
Breakeven: 26.75