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Teva
Pharmaceuticals
(
TEVA |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List, may provide an opportunity for
covered calls. You can buy the stock for 72 1/8 and sell the November 75 calls
for 3 3/4. This represents
approximately a 9% return (more than 75% annualized, based
on 42 days until expiration) should the stock be called
away.
Major
drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating) are now a loosely formed cup-and-handle pattern. Look for buying opportunities in calls and call spreads
here but don’t overstay your welcome as there is longer-term overhead
resistance.
Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating) is consolidating at high levels and still looks poised to resume its
strong uptrend. Look for buying opportunities in calls and call spreads here.
On the
short side, it appears that the semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) remain so weak that they
can’t even rally enough from lows to give us a decent pullback. Therefore, even
though they remain oversold, look for buying opportunities in puts and puts
spreads here.
Retail
(
$RLX.X |
Quote |
Chart |
News |
PowerRating) is stalling out in its rally from lows and appears to be forming
an inverted cup-and-handle. Look for buying opportunities in puts and put
spreads here.
Best
of luck with your trading on Friday!
P.S. Reminder:
Protective stops on every trade!