SOX Slides
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”>Lehman Brothers
(
LEH |
Quote |
Chart |
News |
PowerRating), on the
From Highs List, may present an opportunity for covered
calls. You can buy the stock for 112 3/4, and you can sell
the October 115 calls for 9 5/8. This represents
approximately a 10% return (more than 40% annualized, based
on 80 days until expiration) should the stock be called
away.
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On
the short side, the semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) appear to be
resuming their downtrend. Look for buying opportunities in
puts and put spreads here.
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Continuing
on the short side, major oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating), mentioned
recently, still look vulnerable. Look for buying
opportunities in puts and put spreads here.
Looking
ahead, the drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating) have had a few
flight-to-defense false rallies. Therefore, we will see if
Tuesday’s rally can stick before getting too bullish here.
Telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) may be setting up for a move lower.
Best
of luck with your trading on Wednesday!
P.S. Reminder:
Protective stops on every trade!