Broker Break-Out?
size=”2″ face=”Arial, Helvetica”>Join me, fellow
TradingMarkets.com content providers, and other traders and
money managers at the Trading Markets 2000 conference at the
Venetian Hotel Resort and Casino in Las Vegas on October
13-15, 2000.
face=”Arial, Helvetica”>Now that Donaldson, Lufkin &
Jenrette
(
DLJ |
Quote |
Chart |
News |
PowerRating), mentioned Wednesday night, has resumed
its uptrend, it may present a better opportunity for covered
calls. You can buy the stock for 60 1/8, and you can sell
the October 70 calls for 3 3/4. This represents
approximately a 22% return (more than 125% annualized, based
on 64 days until expiration) should the stock be called
away.
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Broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) appears to be finding support at high levels
and looks poised to make another stab higher. Look for
buying opportunities in calls and call spreads here.
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On
the short side, telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating), mentioned Wednesday
night, still looks poised to resume its downtrend. Continue
to look for buying opportunities in puts and put spreads
here, but focus on the weakest issues (versus the overall
sector), as there were some pockets of strength on Thursday.
The
VIX made a new low for the year on Thursday. Look for buying
opportunities in OEX puts and put spreads, but wait for a
reversal in price, as the market was strong on Thursday and
will likely follow through.
Looking
Ahead
Oil
service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) broke to new highs again on
Thursday. Continue to wait for the first pullback here.
Best
of luck with your trading on Friday!
P.S. Reminder:
Protective stops on every trade!
P.P.S. Due to a
scheduling conflict, I won’t be writing my commentaries
Friday night. If you happen to be in Ontario, California,
look for me at the Online Trading Expo over the weekend.