Trade Recommendation SPY Iron Condor

Thursday March 24 , 2011

Trade 9-2011

Trade 7 -2011 and trade 8-2011 both expired worthless over last weekend

I have waited for the market to settle a bit after the japan crisis....

Objective of this trade is for SPY to stay within the ranges and preferably between the short strikes. In
the event of SPY Breaking out of it's trading range and approaching either of the short strikes an
insurance position will be constructed along side the condor.

Trade Details:

SPY (S&P 500 exchange traded fund)

Buy April 2011(week1) 136 Call option @ $0.02

Sell April 2011(week1) 133 Call option @ $0.20

Buy April 2011 (week1) 124 Put option @ $0.13

Sell April 2011 (week1) 127 Put option @ $0.32

Buy April 2011 (week1) 132 Call option @ $0.62

Buy April 2011 (week1) 128 Put option @ $0.45

Net Credit per 10 contract condor $168 (or 7.1% on invested capital)

For each 10 contract condor position entered, a 1 contract insurance straddle position is created

Trade Explanation:

The SPY has Intra day resistance points around the $134.60 price point, and intraday support around
the $130 price point
With 7 days until the Mar 2011 option contracts expire, the likelyhood of SPY making a large move in
either direction and hitting the sold strikes is unknown.

The trade will be closely monitored for any break through in SPY's trading range. This trade aims to
take advantage of the time decay of weekly options. I am looking to exit this trade around Wednesday
or thursday of next week.

Redline Autotrading clients do not need to do anything, as the trade has already been placed in your
account

Redline Client's portfolios are so far showing a gain of 18.2% for 2011, how is your portfolio performing
in 2011?

Do You want to have these trades placed at No Charge in your trading account?

Here at redline Securities, we offer an Auto Trading service, where trades like these are able to be
placed on your behalf in your brokerage account. There is no charge for this service, (other than
brokerage.)

We are only accepting 37 more new clients into this service

So If you are interested in the possibility of having these types of returns in your account...then
contact me today

How does Redline Securities make money from the trades then?
We charge a very small mark up on the brokerage (brokerage is charged at the rate of $1.50 per
option contract)

What do I need to get started?

All you need is a brokerage account with our partner brokerage, Interactive Brokers, please contact
Redline Securities to receive the account opening link. Opening an account is quick and easy, and can
be done in less than 20 minutes

What is the account minimum?

$5,000 (USD) is required to open an account

How has the Redline Securities Trade Alerts performed so far?

Between November 2009 and November 2010 a client of the Redline Securities Credit Spread/ Iron
Condor service would have potentially received a gain of 74%. Click here to view the trade alerts
returns in detail.

Mark Alexander
Investment Adviser
Telephone: (07) 3102 4582
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Services Pty Ltd AFSL 238 032

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