Be very careful out here guys. We've got a volatile week coming!

http://biz.yahoo.com/c/e.html

WEEKLY SPY - IRON CONDOR HITLIST

POSSIBLE TRADE:

SELL CALL: 110 STRIKE
BUY CALL:  111 STRIKE

SELL PUT:  102 PUT
BUY PUT:   101 PUT

EXPIRATION: FRIDAY 09/06.

PREMIUM: $0.17 @ MID  OR A 15% RETURN FOR THE WEEK!!!!!!!!!

EXPLANATION: CURRENTLY THE SPY IS TRADING AT 106.7 MEANING THAT WE HAVE A HUGE RANGE TO WORK WITH HERE.

3PAR on Fire!!!! Options Action!

The stock is trading well above the increased HP-offer of $30/share in anticipation of Dell coming back (again) and increasing their bid.

Here's some interesting ways to play this activity:

1. Write the Sep 30 put for a $0.15-$0.20 premium and use the proceeds to buy the Sep 37.5 call for $0.20-$0.25 creating almost a free trade. This saga may still have some legs and could result increased options activity potentially driving up the latter strikes.
2. Another option is to just buy the Sep 37.5 call @ outright given the low price!

Sept Expiration (HPQ)

HPQ:

Action: Write PUT

Strike: 37
Premium: $0.77 premium

Logic: Stock is beyond oversold behind the departure of the CEO. I believe selling this strike and holding the stock for passive potential covered call income offers tremendous opportunity.

OPTIONS ACTION

IRON-CONDOR (WEEKLY SPY)
EXPIRATION: THIS WEEK (FRI, AUG 27TH)

TRADE:

SELL CALL: 106
BUY CALL: 107

SELL PUT: 103
BUY PUT: 102

PREMIUM: $0.26 (@NATURAL) OR 38%!