Bulletproof Biotech
face=”Arial, Helvetica”>Express Scripts
(
ESRX |
Quote |
Chart |
News |
PowerRating), on the
Momentum List, may present an opportunity for covered
calls. You can buy the stock for 62 9/16, and you can sell
the August 65 calls for 4. This represents approximately a
10% return (more than 80% annualized, based on 45 days until
expiration) should the stock be called away.
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Biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, continue to rally out
of a high-level "micro" double bottom. Continue to
look for buying opportunities in calls and call spreads
here.
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On
Monday night, I thought the semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) were OK,
as they had begun to rally out of a pullback. However, on
Wednesday, they got slammed. It now looks like this pullback
has failed. Look for a buying opportunity in puts and put
spreads here, but use extreme caution, as this sector has
become very volatile.
Major
oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, and oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating),
along with the underlying commodity, dropped on news from
OPEC. This suggests that the top may have been put in here.
Begin looking for buying opportunities in puts and put
spreads.
Best
of luck with your trading on Thursday!
P.S. Reminder:
Protective stops on every trade!