Drugs OK
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”>Interwoven Technologies
(
IWOV |
Quote |
Chart |
News |
PowerRating),
on the
From Highs List, may present an opportunity for covered
calls. You can buy the stock for 70, and you can sell the
August 80 calls for 4 7/8. This represents approximately a
21% return (more than 300% annualized, based on 25 days
until expiration) should the stock be called away.
width=”470″ height=”320″>
face=”Arial, Helvetica”>Major drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating) acted as
they should have during a down market: They rallied as a
flight to quality. This action suggests that their long-term
uptrend may be intact. Look for buying opportunities in
calls and call spreads here.
width=”470″ height=”320″>
face=”Arial, Helvetica”>On the short side, major oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating),
mentioned recently, continue to sell off from a major top
formation. Oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) also looks
vulnerable. Look for buying opportunities in puts and put
spreads here.
For
you OEX traders, once again, the VIX remains at very low
levels on a relative basis. Continue to look for buying
opportunities in puts and put spreads here.
Looking
ahead, the semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, still
look vulnerable. For the nimble, you might want to begin
looking for buying opportunities in puts and put spreads.
Best
of luck with your trading on Tuesday!
P.S. Reminder:
Protective stops on every trade!