Extreme Options
For those willing to assume a high degree of
risk, Extreme Networks
(
EXTR |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List, may present an opportunity for covered
calls. You can buy the stock for 100 and sell the August 105 calls for 10 1/2. This represents approximately a
15% return
(over 90% based on 51 days until expiration) should the stock be called
away.
Biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, rallied nicely on
Wednesday reversing Tuesday’s sell-off. Continue to look for a buying opportunity in calls and call
spreads here.
On the short side, banks
(
$BKX.X |
Quote |
Chart |
News |
PowerRating), mentioned Tuesday
night, still look vulnerable. Continue to look for a buying opportunity here in
puts and put spreads.
Best of luck with your trading on Thursday!
PS-Reminder: Protective stops on every trade!