Biotech Bounce
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”>Sun Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating) may present an opportunity for
covered calls. You can buy the stock for 123 15/16, and you can
sell the October 135 calls for 5. This represents
approximately a 13% return (more than 100% annualized, based
on 43 days until expiration) should the stock be called
away.
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Biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) found support near its recent breakout
(a) and rallied nicely on Thursday (b). This suggests its uptrend may still be
intact. Look for buying opportunities in calls and
call spreads here.
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Software
(
$GSO |
Quote |
Chart |
News |
PowerRating)
looks poised to rally out of a pullback. Look
for buying opportunities in calls and call spreads here.
Internet
(
$IIX |
Quote |
Chart |
News |
PowerRating) also looks poised to rally out of a pullback. Look
for buying opportunities in calls and call spreads here.
On the
short side, retail
(
$RLX.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, still looks vulnerable.
Continue to look for buying opportunities in puts and put spreads here.
Best
of luck with your trading on Friday!
P.S. Reminder:
Protective stops on every trade!