VIX Continues To Implode
NetIQ
(
NTIQ |
Quote |
Chart |
News |
PowerRating), mentioned Monday night, may
still provide an opportunity for covered calls. You can buy the stock for
95 13/16 and sell the December 100 calls
for 8 7/8. This represents
approximately a 14% return (more than 160% annualized, based
on 31 days until expiration) should the stock be called
away.
The
major drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating) rallied nicely on Tuesday (a), reversing Monday’s
sell off (b), this action suggests that their uptrend remains intact. Look for
buying opportunities in calls and call spreads here.
The semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), mentioned Monday night, continued their bounce on Tuesday.
Therefore, continue to look for buying opportunities in calls and call spreads
here–just don’t overstay your welcome as the long-term trend remains down.
The
transports
(
$TRX.X |
Quote |
Chart |
News |
PowerRating) resumed their rally out of their first pullback
since melting up from lows. Look for a buying opportunities in calls and call
spreads here.
The VIX continued to implode from Monday’s
reversal (see last night’s commentary). Continue to look for option strategies which seek to capitalize on the
potential for an implosion in volatility.Â
Best of
luck with your trading on Wednesday!
P.S. Reminder:
Protective stops on every trade!
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