Utilities Pull Back
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”>Alza Corp.
(
AZA |
Quote |
Chart |
News |
PowerRating) may present an opportunity for
covered calls. You can buy the stock for 76 1/16 and sell the November 80 calls
for 4. This represents
approximately a 10% return (more than 70% annualized, based
on 49 days until expiration) should the stock be called
away.
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The
utilities
(
$UTY.X |
Quote |
Chart |
News |
PowerRating) are forming a pullback after a fast uptrend. Look for
buying opportunities in calls and call spreads here.
On the
short side, the transports
(
$TRX.X |
Quote |
Chart |
News |
PowerRating), mentioned Friday, continued lower on
Monday as crude oil hit life-of-contract highs. Continue to look for buying
opportunities in puts and puts spreads here.
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Best
of luck with your trading on Tuesday!
P.S. Reminder:
Protective stops on every trade!