Biotechs Blast
face=”Arial, Helvetica”>Cell Genesys
(
CEGE |
Quote |
Chart |
News |
PowerRating) may present
an opportunity for covered calls. You can buy the stock for
27 3/8, and you can sell the July 30 calls for 3 1/4. This
represents approximately a 21% return (more than 170%
annualized, based on 41 days until expiration) should the
stock be called away.
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The
semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, remain strong.
Continue to look for buying opportunities in calls and call
spreads here.
The
biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) appear to have resumed their
uptrends from a complex bottom structure. Continue to look
for buying opportunities in calls and call spreads here, but
wait for sector confirmation, or focus on the strongest
individual issues.
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Gaming
(
$GAX.X |
Quote |
Chart |
News |
PowerRating) remains strong. Continue to look for buying
opportunities in calls and call spreads here, but remember:
Many issues and the overall sector can trade thin.
Software
(
$CWX.X |
Quote |
Chart |
News |
PowerRating) is consolidating after rallying, forming a
wide-and-loose bottom, and looks poised to rally higher.
Look for a buying opportunity here in calls and call
spreads.
On
the short side, oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) appears to be
failing after a two-step pullback, and looks like it may be
forming a complex head-and-shoulders top. Begin to look for
buying opportunities in puts and put spreads.
Best
of luck with your trading on Monday!
P.S. Reminder:
Protective stops on every trade!