Major Oils Vulnerable
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”>PeopleSoft
(
PSFT |
Quote |
Chart |
News |
PowerRating), on the
From Highs List, formed a bullish outside day in a
pullback (a) on Monday. The stock may present an opportunity
for covered calls. You can buy the stock for 21 13/16, and
you can sell the October 25 calls for 2 1/16. This
represents approximately a 15% return (more than 60%
annualized, based on 81 days until expiration) should the
stock be called away.
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On
the short side, major oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating) and oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, still look vulnerable.
Continue to look for buying opportunities in puts and put
spreads here.
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Looking
ahead: Although the media are awfully excited about the
semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) bouncing off their 200-day moving
average, I wouldn’t get too bullish just yet. So far, this
looks like nothing more than the beginning of a pullback
from lows.
Best
of luck with your trading on Tuesday!
P.S. Reminder:
Protective stops on every trade!