Retail Slides; Low VIX
face=”Arial, Helvetica” size=”2″>Join me, fellow
TradingMarkets.com content providers, and other traders and
money managers at the Trading Markets 2000 conference at the
Venetian Hotel Resort and Casino in Las Vegas on October
13-15, 2000.
Quest
Diagnostics
(
DGX |
Quote |
Chart |
News |
PowerRating), mentioned recently, may still present
an opportunity for covered calls. You can buy the stock for
107 1/16, and you can sell the September 110 calls for 7
1/4. This represents approximately a 9% return (more than
100% annualized, based on 31 days until expiration) should
the stock be called away.
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On the short side, telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) appears to be pulling back from lows and
looks poised to resume its downtrend. Look for buying
opportunities in puts and put spreads.
Retail
(
$RLX.X |
Quote |
Chart |
News |
PowerRating) has
given up all of its recent gains and looks poised to break
lower. Look for buying opportunities in puts and put
spreads.
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The VIX remains near its
lowest levels of the year. Continue to look for buying
opportunities in OEX puts and put spreads.
Looking Ahead
It’s too early to tell for
sure, but it’s beginning to look like the biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating)
are putting in a top.
Best
of luck with your trading on Wednesday!
P.S. Reminder:
Protective stops on every trade!