Sponsored By:

Dow Chemical Corp. (DOW)

November 24, 2008

Dear Fellow Options Trader,

In the spirit of Thanksgiving, we are going back for a second helping.

On Oct. 23, we sold the Dow Chemcial (DOW) Nov 22.50 Puts for $1 or better as the stock had been pressed down to seven-times its earnings multiple and a 7% yield. On Nov. 4, we closed this position for a 77% gain.

This turkey has only become juicier and has added trimmings, so we recommend selling the DOW Dec 17.50 Puts (DOWXW) for $1.10 or better.

Remember that selling puts is a bullish move, and we like that DOW's dividend is now more than 9% and the price earnings multiple on 2008 earnings is about six times.

But what we really like about selling options this week is the time decay. The market is closed on Thursday and closes early at 1 p.m. Eastern on Friday. With the markets closed and the equity price and volatility frozen, the time value of the option continues to erode. It looks like a good time to carve off another profit slice.

Over the weekend, while considering Thanksgiving, we ran across the following quote from Cicero (an ancient Roman statesman and philosopher): "Gratitude is not only the greatest of virtues, but the parent of all the others."

We wanted to share this thought with you as we move through this difficult financial time.

Have a great day trading.

Nick Atkeson and Andrew Houghton