Richard CroftNYSE GroupNYXPAST TOP PICKOct 23, 2009

(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.

He is a big supporter of converges. High frequency traders are were the revenue streams are. He likes it

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.

His model price is just a little above the current price so he would be tempted to sell.

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.

(A Top Pick March 27/09. Up 50.13%.)

(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.

Market share and margins are really the issue. The only businesses in the financial services that have done well are the exchanges. There are 40 different alternative trading platform systems in the US, which will be hurt even more than this. Has a global reach and involved in a wide product mix.

Strategy: Buy this and 1) Sell June $25 Calls @ $4.70 2) Sell June 25 Puts @ $5.70 for a net cost of $14.06. For selling the Call option you agree to sell the shares for $25. For selling the Put options you agree to buy more shares at $25. Only one of those options will have any value by June.If stock goes above $25 your return is $25 divided by your net cost of $14.06 giving a 74% return.If stock drops below $25, you have to buy another block of shares at $25 and the $25 plus the $14.06 net cost gives an average cost is $19.26, which is a very good investment.Stock also has a 6% dividend.

Very much driven by volume. Attractive volumes, especially on the down side. Expect there could be nice earnings out of NYSE Euronext as well is getting continuing benefits from the mergers. High beta stock because it is very much tied to equity markets.