Goldman Dropping Upgrade Bombs
The markets opened slightly
lower this morning, although the
PowerRating) upside pre-announcement
has lifted the futures in the last few minutes. Goldman is dropping upgrade
cluster bombs in the semi and semi-manufacturing sector.
PowerRating) are getting holy water sprinkled on them this morning.
Unfortunately, continuing concerns in the mumbo-jumbo
accounting department continues to weigh on overall sentiment, with
and once again
PowerRating) being named in various publications over the weekend.
We are monitoring the “accounting fraud” sector
for possible initiation of proxy buy-writes.
Traders may make scale purchases of puts in the QQQs on
strength, taking partial profits on sell-offs.
Recap of open trades
None — volatility too low! Again, this is a general
recommendation. Specific opportunities always exist.
BA Jan. ’03 40/May 45 call calendar @ $2.75 (100%).
Settled at $4.65.
Call Spread Positions
Put Spread Positions
*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
*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: