Bios Reverse
Special thanks to
David Baker and Dan Delaney for filling in while I was away.
Micron Technologies
(
MU |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List, may present an opportunity for covered
calls. You can buy the stock for 89 1/2 and sell the August 95 calls for 7 1/8. This represents approximately a
14% return
(over 90% based on 53 days until expiration) should the stock be called
away.
Biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), sold off earlier on Monday but reversed
to close well. This may have shaken out the weak hands and could clear the way
for them to trade higher. Look for a buying opportunity in calls and call
spreads here.
The semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) seem to be finding support right above
their prior breakout. This suggests their uptrend remains intact. Look for
buying opportunities in calls and call spreads here.
For the OEX
traders, tonight (Monday), we have a CVR I and CVR II buy signal on the Market
Bias Page. Look for those strategies which seek to capitalize on
(possible) imploding volatility. However, be sure to hedge yourself and/or
use risk control as these strategies offer limited upside and unlimited downside.
Best of luck with your trading on
Tuesday!
PS-Reminder: Protective stops on every trade!