Go Nets?
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”>Go 2 Net
(
GNET |
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Chart |
News |
PowerRating), on the
60-Day Highs On Double Volume List, may present an
opportunity for covered calls. You can buy the stock for 62
1/8, and you can sell the August 65 calls for 6 3/8. This
represents approximately a 14% return (more than 200%
annualized, based on 24 days until expiration) should the
stock be called away.
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Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating) broke to new highs out of a lengthy
high-level consolidation. Look for buying opportunities in
calls and call spreads here.
face=”Arial, Helvetica”>The Nets
(
$IIX.X |
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Chart |
News |
PowerRating) seem to be
finding support near the area of their recent breakout (a).
This suggests that their uptrend from major lows remains
intact. Look for buying opportunities in calls and call
spreads here.
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face=”Arial, Helvetica”>On the short side, major oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating)
and oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, still
look vulnerable. Continue to look for buying opportunities
in puts and put spreads here.
The
semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, seem to have
gotten a shot in the arm, based on the positive earnings
news from Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating). However, after all
was said and done, TXN actually ended down on the day. This
leaves this sector in limbo for the time being. For the
nimble only, look for buying opportunities in puts and put
spreads if and only if we take out Monday’s lows.
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, biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) may be rolling over.
Best
of luck with your trading on Wednesday!
P.S. Reminder:
Protective stops on every trade!