Oils/Oil Service Remain Strong
size=”2″ face=”Arial, Helvetica”>For those of you planning
to attend the TradingMarkets2000 First Annual Traders
Conference at the Venetian Resort, Hotel & Casino in Las
Vegas on October 13-15, I’ll be speaking on Saturday
afternoon following Jay Leno. I’ll also be at the cocktail
party Friday night. Sign up soon, as space is limited.
face=”Arial, Helvetica”>Anadarko Petroleum
(
APC |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List,face=”Arial, Helvetica”> may present an opportunity for
covered calls. You can buy the stock for 66 1/2, and you can
sell the October 70 calls for 2 11/32. This represents
approximately a 9% return (more than 100% annualized, based
on 27 days until expiration) should the stock be called
away.
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Major oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating)
and oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, remain strong. Continue to
look for buying opportunities in calls and call spreads here.
On the
short side, the transports
(
$TRX.X |
Quote |
Chart |
News |
PowerRating) look poised to continue their recent
slide, especially with crude at its highest level since the Gulf War.
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On the
short side, drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating) and healthcare
(
$HCX.X |
Quote |
Chart |
News |
PowerRating), mentioned
recently, remain weak in spite of overall market weakness. In other words, there
is no flight to quality. Continue to look for buying opportunities in puts and
put spreads here.
Best
of luck with your trading on Monday!
P.S. Reminder:
Protective stops on every trade!