Zacks.com Announces That the Experts at Ultimate Option Strategies Highlight an Option for the Following Stock: Fording

Business Wire, May 3, 2006

CHICAGO -- Ken Trester, editor of the Ultimate Option Strategies newsletter, says it's a good idea to be cautious with option purchases. Read his outlook and discover an option play on Fording (NYSE:FDG). Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=84

Highlights from the April 24 Featured Expert column by Ken Trester include:

Ken Trester's Best Option Play

Debit Spread to Buy -- Buy Fording (NYSE:FDG) Jan 2008 40 Call and sell FDG Jan 2008 45 Call. The spread price at Friday (4/21) close was $1.80.

The maximum profit potential with this position is 155%. Maximum profits will be realized if the stock is above 45 during the week prior to January 2008 options expiration.

A debit spread is similar to buying an option, except you are using the simultaneous sale of another option to offset some of the cost. This debit spread reduces the cost of buying the FDG Jan 2008 Call, which otherwise would cost $4.10.

FDG is a Canadian coal trust, and rising oil prices tend to pull coal prices higher right along with them. The stock has had a huge run over the past three years but doesn't need to go a whole lot higher to put this spread in maximum profits territory. The stock's high dividend yield should also attract buyers.

Read Ken Trester's market outlook, take a look at the complete description of the above option trade and discover more options by clicking: http://at.zacks.com/?id=85

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