Put Possibilities?
size=”2″ face=”Arial, Helvetica”>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.
face=”Arial, Helvetica”>Donaldson, Lufkin & Jenrette
(
DLJ |
Quote |
Chart |
News |
PowerRating),
on the
From Highs List, may present an opportunity for covered
calls. You can buy the stock for 56 5/16, and you can sell
the September 60 calls for 2 1/2. This represents
approximately an 11% return (more than 130% annualized,
based on 30 days until expiration) should the stock be
called away.
width=”470″ height=”320″>
On
the short side, telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating), mentioned Wednesday
night, appears to be resuming its downtrend. Continue to
look for buying opportunities in puts and put spreads here.
Retail
(
$RLX.X |
Quote |
Chart |
News |
PowerRating), mentioned Wednesday night, got creamed on
Thursday. Continue to look for buying opportunities in puts
and put spreads.
In
spite of what the media said all day, to me, it looks like
the semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) are stalling out here. Look for
buying opportunities in puts and put spreads.
Once
again, the VIX remains near its lowest levels of the year:
Notice the CVR sell signals on the
Bias Page. Continue to look for buying opportunities in
OEX puts and put spreads.
Looking
Ahead
Oil
service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) broke to two-year highs on
Wednesday. If the underlying product stays at current high
levels, this sector may be worthwhile on the first pullback.
Best
of luck with your trading on Thursday!
P.S. Reminder:
Protective stops on every trade!