Biotech And Broker/Dealer Still Vulnerable
Cache Flow
(
CFLO |
Quote |
Chart |
News |
PowerRating),
on the Trading
Where The Action Is List, may provide an opportunity for
covered puts. You can short the stock at 46 1/2 and sell the January 40 puts for
6 1/8. This represents
approximately a 27% return (more than 180% annualized, based
on 55 days until expiration) should the stock be put to you.
Consumer non-durables
(
$CMR.X |
Quote |
Chart |
News |
PowerRating),
mentioned recently, broke to new highs on an expansion of range on Wednesday. Continue to look for buying
opportunities in calls
and call spreads here.
Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating) appears to be
mounting a comeback out of yet another pullback. Look for buying
opportunities in calls and call spreads here.
On the short side, biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) and
broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), both mentioned Tuesday night, still look vulnerable. Continue to look for buying
opportunities in puts and put spreads here.
Follow Up/Looking Ahead
The drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating), mentioned recently,
are getting a little frothy in here. If you have profits, you might want to lock
in a piece and wait for the next pullback.
Best of
luck with your trading on Thursday!
P.S. Reminder:
Protective stops on every trade!