Insurance Breaks Out
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”>Electronic Arts
(
ERTS |
Quote |
Chart |
News |
PowerRating),
mentioned Thursday night and on the
From Highs List, may still present an opportunity for
covered calls. You can buy the stock for 85 15/16, and you
can sell the September 95 calls for 4 3/4. This represents
approximately a 17% return (more than 130% annualized, based
on 39 days until expiration) should the stock be called
away.
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Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating), mentioned Thursday, broke to new highs out
of a high-level flag formation on Friday. Continue to look
for buying opportunities in calls and call spreads here.
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The
semis
(
$SOX.X |
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Chart |
News |
PowerRating) continue to disappoint. After a slight
continuation rally from Thursday’s turnaround, they once
again sold off. Look for buying opportunities in puts and
put spreads here.
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Continuing
on the short side, telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) has pulled back
from lows and looks poised to resume its downtrend. Look for
buying opportunities in puts and put spreads here.
Looking
ahead, the VIX is at relatively low levels. This suggests
that there may be an upcoming buying opportunity in OEX puts
and put spreads.
Best
of luck with your trading on Monday!
P.S. Reminder:
Protective stops on every trade!