Cyclicals Slide
face=”Arial, Helvetica”>Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating), mentioned
recently, may present an opportunity for covered calls. You
can buy the stock for 80 15/16, and you can sell the August
85 calls for 2 15/16. This represents approximately an 8%
return (more than 60% annualized, based on 44 days until
expiration) should the stock be called away.
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Broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) has held up well as of late, in spite of
overall choppy market action. It now looks like
broker/dealer has the potential to break out of its recent
trading range. Look for buying opportunities in calls and
call spreads here.
On
the short side, cyclicals
(
$CYC.X |
Quote |
Chart |
News |
PowerRating), forest and paper
products
(
$FPP.X |
Quote |
Chart |
News |
PowerRating), and chemicals
(
$CEX.X |
Quote |
Chart |
News |
PowerRating) look
poised to resume their downtrends. Look for buying
opportunities in puts and put spreads here.
Major
oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating) and oil services
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) still
look vulnerable. Continue to look for buying opportunities
in puts and put spreads here.
Follow
up: Biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, have
rallied to recent highs. Although they still look bullish,
you might want to lock in a piece of your profits here.
Best
of luck with your trading on Friday!
P.S. Reminder:
Protective stops on every trade!