Stockchase Opinions

Richard Croft NYSE Group NYX-N TOP PICK Mar 27, 2009

(A double up/double down trade.) Buy at $19.55 and Sell January 2010 $20 Call at $4.20 and Sell January 2010 $20 Put at $5.15. Gives you $9.35 in premium so your cost on your original position is $10. If you sell your original position, you have had 100% return. Flip side stock could go down and you would double up your position so your 2nd block of shares would be bought at $10 and your average cost would be slightly less than $15.
$19.080

Stock price when the opinion was issued

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PAST TOP PICK
(A Top Pick March 27/09. Up 50.13%.)
BUY
You buy this at $33.70, Sell the NYX January $35 Call at $2.85 and Sell the NYX January $30 Puts at $2.50. If the stock declines, you could average in to the position over the next 9 months. You are obligated to either buy at $30 or sell at $35.
SELL
His model price is just a little above the current price so he would be tempted to sell.
COMMENT
Exchanges are wonderful proxies for the economies they serve. Looks like it’s on the mend. If it could get through the $31 level, $50 is a possible target.
HOLD
He is a big supporter of converges. High frequency traders are were the revenue streams are. He likes it
DON'T BUY
(Market Call Minute.) Is the European deal dead? Looks like it will have difficulty getting through. Don’t Buy as you don’t know if the deal is going to go through.
DON'T BUY

Doesn’t own any exchanges. This one in particular has had some challenges in terms of growth. Decent dividend yield. Stock trading volumes have generally been declining over the last number of years and he doesn’t see many ways to reverse this.

DON'T BUY

They are currently being bought out. If another player comes along you will get a bump up, but otherwise the price is where it is supposed to be.

BUY

(Market Call Minute) Benefits from stronger markets.

DON'T BUY

If you see better opportunities in other stocks it is better to put the cash there.