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Decided to get into WPL again (this will be the 3rd straight month) This is the same reason as the past 2 trades, WPL has been channelling between 39-40 for the past 2-3 months, there is plenty of support at $38.

The Trade (WPL)
Sell May $38.0 Puts @ $0.41
Buy May $37.5 Puts @ $0.30

Expiry = 24/05/2007
Share/Contract = 1000
Max Profit = 0.11 (0.41-0.30)
Max Risk = 0.39 [(38.0-37.5) - (0.41-0.30)]
Return on Risk = 28.21%
Breakeven = $37.89

I opened 10 contracts:
Reward for trade (excluding fees) $1,100.0
Reward for trade (including fees) $890.6
Value At Risk $3,900.0

The above assumes that on 24th May 2007 WPL is trading at or above $38.0
(WPL closed Friday @ 39.25)

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Opened a NWS position this month, this is the first time I opened a NWS position. NWS has been sideway trading for the past 2-3 month and has created a strong support line at around 29.5 and a resistance at around 30.5 (channelling) There is potential for NWS to return to its previous high of32.5 from the recent pull back.

The Trade (NWS)
Sell May $29.5 Puts @ $0.34.5
Buy May $29.0 Puts @ $0.21

Expiry = 24/05/2007
Share/Contract = 1000
Max Profit = 0.135(0.345-0.21)
Max Risk = 0.365 [(29.5-29.0) - (0.345-0.21)]
Return on Risk = 36.99%
Breakeven = $29.365

I opened 10 contracts:
Reward for trade (excluding fees) $1,350.0
Reward for trade (including fees) $1140.6
Value At Risk $3,650.0

The above assumes that on 24th May 2007 NWS is trading at or above $29.5
(NWS closed Friday @ 29.85)