Continued Action In Broker/Dealer?
size=”2″ face=”Arial, Helvetica”>For those of you planning
to attend the TradingMarkets2000 First Annual Traders
Conference at the Venetian Resort, Hotel & Casino in Las
Vegas on October 13-15, I’ll be speaking on Saturday
afternoon following Jay Leno. I’ll also be at the cocktail
party Friday night. Sign up soon, as space is limited.
face=”Arial, Helvetica”>Bear Stearns
(
BSC |
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PowerRating) may present an opportunity for
covered calls. You can buy the stock for 69 13/16 and you can
sell the October 75 calls for 2 9/16. This represents
approximately an 11% return (more than 140% annualized, based
on 28 days until expiration) should the stock be called
away.
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For you breakout players, broker/dealer
(
$XBD.X |
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PowerRating) is
consolidating by going sideways. Look for buying opportunities in calls and call
spreads here.
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Major oils
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$XOI.X |
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PowerRating)
and oil service
(
$OSX.X |
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PowerRating) have begun to pull back from all-time highs.
Look for buying opportunities in calls and call spreads here.
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Software
(
$GSO.X |
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News |
PowerRating), mentioned Wednesday night, still looks like it has potential.
Continue to look for buying opportunities in calls and call spreads
here.
On the
short side, drugs
(
$DRG.X |
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PowerRating) and healthcare
(
$HCX.X |
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PowerRating) appear to be
stalling out in their rally from lows. Look for buying opportunities in puts and
put spreads here.
Best
of luck with your trading on Friday!
P.S. Reminder:
Protective stops on every trade!