Trade Recommendation SPY Iron Condor

February 25, 2011

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 March 2011 (week1) 137 Call option @ $0.04

Sell March 2011 (week1) 134 Call option @ $0.17

Buy March 2011 (week1) 122 Put option @ $0.25

Sell March 2011 (week1) 125 Put option @ $0.47

Buy March 2011 (week1) 133 Call option @ $0.38

Buy March 2011 (week1) 126 Put option @ $0.66

Net Credit per 10 contract condor $233 (or 7.7% 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 (week1) 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.

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.)

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.

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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considered advisory. No respsonsibility will be taken by Redline Securities for errors or omissions
contained within this correspondance, or financial losses from using this information. Securities and
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market

Mark Alexander Trading as Redline Securities ASIC Number 399 558 is an authorised representative of
Romad Financial
Services Pty Ltd AFSL 238 032

Sent on behalf of Redline Securities.

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