Biotech Remains A Wreck
Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating),
on the Pullbacks
Off Highs List, may provide an opportunity for covered calls.
You can buy the stock at 80 1/4 and sell the January 92 1/2 calls for 5 1/2. This represents
approximately a 22% return (more than 140% annualized, based
on 54 days until expiration) should the stock be called away.
On the short side, biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating),
mentioned recently, continues to slide. Continue to look for buying
opportunities in puts and put spreads here.
Follow Up/Looking Ahead
If you have profits in the broker/dealer
sector
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, you might want to lock in a piece as
they began to recover after being hit hard on Thursday. Â
Oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) stabbed lower on
Thursday on an expansion of range. This sector may set up as a pullback from
lows early next week.
Software
(
$GSO.X |
Quote |
Chart |
News |
PowerRating) may also provide
shorting opportunities should it pull back from lows next week.
Gold and silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) has put in a
cup formation and may form a handle over the next few days.
Best of
luck with your trading on Friday!
P.S. Reminder:
Protective stops on every trade!