Goldman Dropping Upgrade Bombs
The markets opened slightly
lower this morning, although the
(
HWP |
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has lifted the futures in the last few minutes. Goldman is dropping upgrade
cluster bombs in the semi and semi-manufacturing sector.
(
NVLS |
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(
TER |
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and
(
KLAC |
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Unfortunately, continuing concerns in the mumbo-jumbo
accounting department continues to weigh on overall sentiment, with
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AMZN |
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and once again
(
TYC |
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Updates
With volatility back on the lows, we are going back on the
“buy puts on strength” program, but in the
(
QQQ |
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PowerRating)s only.
We are monitoring the “accounting fraud” sector
for possible initiation of proxy buy-writes.
Current Recommendations
Buy the
(
SLB |
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PowerRating) May 55/60 call spread (buy the 55 calls,
sell the 60 calls) for $1.50 (25%).
Traders may make scale purchases of puts in the QQQs on
strength, taking partial profits on sell-offs.
Technical Levels:
INDEX | CLOSE | PREVIOUS WEEK’S CLOSE |
POINT GAIN (LOSS) |
PERCENTAGE GAIN (LOSS) |
20-DAY MA |
50-DAY MA |
200- DAY MA |
DJI | 9907.30 | 9840.1 | 67.20 | 0.68% | 9903.08 | 9936.98 | 10104.03 |
S&P | 1122.20 | 1133.28 | -11.08 | -0.98% | 1137.33 | 1142.21 | 1165.84 |
COMP | 1911.20 | 1937.7 | -26.50 | -1.37% | 1969.95 | 1965.26 | 1939.78 |
QQQ | 38.14 | 38.83 | -0.69 | -1.78% | 39.53 | 39.95 | 40.19 |
BKX | 833.26 | 870.97 | -37.71 | -4.33% | 857.46 | 851.97 | 859.17 |
BTK | 509.86 | 527.56 | -17.70 | -3.36% | 533.71 | 566.32 | 546.63 |
DRG | 377.40 | 375.3 | 2.10 | 0.56% | 376.84 | 384.18 | 390.59 |
CMR | 569.58 | 563.87 | 5.71 | 1.01% | 560.77 | 558.35 | 548.43 |
CYC | 537.92 | 529.75 | 8.17 | 1.54% | 526.95 | 527.12 | 526.84 |
DOT | 166.44 | 176.21 | -9.77 | -5.54% | 185.40 | 188.84 | 199.73 |
NWX | 309.55 | 318.45 | -8.90 | -2.79% | 330.71 | 331.12 | 335.85 |
OSX | 85.56 | 84.45 | 1.11 | 1.31% | 80.81 | 80.92 | 91.98 |
RLX | 931.01 | 916.82 | 14.19 | 1.55% | 918.93 | 906.58 | 869.33 |
SOX | 552.87 | 535.94 | 16.93 | 3.16% | 551.28 | 544.21 | 554.87 |
XAL | 91.33 | 92.7 | -1.37 | -1.48% | 92.94 | 89.60 | 112.39 |
XAU | 62.80 | 59.14 | 3.66 | Â 6.19% | 58.78 | 55.54 | 55.67 |
XBD | 498.15 | 510.59 | -12.44 | -2.44% | 517.23 | 507.59 | 479.95 |
XCI | 770.76 | 776.05 | -5.29 | -0.68% | 795.11 | 792.09 | 770.10 |
XOI | 513.37 | 508.9 | 4.47 | 0.88% | 505.84 | 502.23 | 533.52 |
FOP | 108.52 | 111.47 | -2.95 | -2.65% | 116.83 | ||
SWH | 45.36 | 47.07 | -1.71 | -3.63% | 47.23 | 45.69 | |
VIX | 22.87 | 21.93 | 0.94 | 4.29% | 23.60 | 24.33 | 27.37 |
VXN | 43.08 | 45.67 | -2.59 |
-5.67% | 47.05 | 48.61 | 56.38 |
QQV | 35.56 | 38.21 | -2.65 | -6.94% | 39.74 | 41.25 | 48.16 |
Rolls/Adjustments
None.
Recap of open trades
Long-term
Reverse Collars
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TLAB |
Quote |
Chart |
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PowerRating) — March 17.5/15 reverse collar (long the
March 17.5 calls, short the March 15 puts) at $1.50 credit average (50%),
settled at $.80 credit.
(
AMD |
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PowerRating) — April 25/15 reverse collar (long the April 25
calls, short the April 15 puts) at $.05 credit (100%). Settled at $1.40 credit.
Buy-writes
None — volatility too low! Again, this is a general
recommendation. Specific opportunities always exist.
Proxy buy-writes
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BA |
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PowerRating) Jan. ’03 35/May 45 call calendar @ $4.75 (100%).
Settled at $7.55.
BA Jan. ’03 40/May 45 call calendar @ $2.75 (100%).
Settled at $4.65.
Complex Strategies
(
GILD |
Quote |
Chart |
News |
PowerRating) — Long the GILD Feb. 70 straddle at $8.00
(50%). Settled at $5.00, but we have captured $5.50 in gamma scalping profits
already!
Short-term
Call Positions
None.
Call Spread Positions
(
DYN |
Quote |
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PowerRating) — Long the March 30/40 1:2 call ratio spread @ $1.50.
Settled at $.55.
(
TLAB |
Quote |
Chart |
News |
PowerRating) — Long the March 17.5/22.5 call spread at $.80
credit average (50%). Settled at $.30. Note: This spread is a result of a
reverse collar roll.
Put Positions
(
QQQ |
Quote |
Chart |
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PowerRating) — Long the March 39 puts at $2.35 (25%). Settled at
$2.30. Stop below.
Put Spread Positions
(
AZO |
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Chart |
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PowerRating) — Long the March 55/65 put spread @ 2.125 (100%).
Settled at $2.20.
STOPS
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AMD |
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PowerRating): Stop @ 14.90, close only.
(
QQQ |
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PowerRating): Stop @ 39.50, two consecutive days close only.
(
TLAB |
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PowerRating): Stop @ 11.95, close only.
Click |
*Options trading involves substantial risk
and is not suitable for all investors. Also note that
spread strategies involve multiple commissions and are not risk-free. Most
spreads must be done in a margin account.
*Because of the importance of tax considerations
to all options transactions, the investor considering options should consult
with a tax advisor as to how taxes may affect the outcome of contemplated
options transactions.
*Supporting documentation for claims,
comparisons, recommendations, statistics or other technical data will be
furnished upon request. One or more of the contributors to these commentaries
may have a position in one or more of the securities mentioned.
It is important to note that the options
strategies discussed herein are not suitable to all investors. Options are
complex investment tools and involve substantial risk. Moreover spreading
strategies do not eliminate risk and involve multiple commissions.
Note: All individuals must have read the ODD
carefully before trading options. To obtain the document, click on the OCC link:
https://www.theocc.com/publications/risks/riskchap1.jsp
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