Brokers Stabilize
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”>Mercury Interactive
(
MERQ |
Quote |
Chart |
News |
PowerRating) may
present an opportunity for covered calls. You can buy the
stock for 108, and you can sell the August 115 calls for 7
1/8. This represents approximately a 13% return (more than
150% annualized, based on 31 days until expiration) should
the stock be called away.
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face=”Arial, Helvetica”>Telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) held up
fairly well on Tuesday. Look for buying opportunities in
calls and call spreads, but wait for follow-through to the
upside.
Broker/dealers
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), mentioned Monday night as being potentially
vulnerable, were down on Tuesday, but held up well in spite
of poor overall market action. Therefore, so far, this
suggests that they may be just pulling back. Look for buying
opportunities in calls and call spreads, but only on
signs of renewed strength.
Continuing
on the short side, banks
(
$BKX.X |
Quote |
Chart |
News |
PowerRating), mentioned recently,
still look vulnerable.
For
you OEX traders, once again, the VIX remains at relatively
low levels. Continue to look for buying opportunities in OEX
puts and put spreads.
Best
of luck with your trading on Wednesday!
P.S. Reminder:
Protective stops on every trade!