Internet In Weak Position
Special thanks to Dan Delaney for
filling in while I was away.
Verisign
(
VRSN |
Quote |
Chart |
News |
PowerRating),
on the Trading
Where The Action Is List,Â
may provide an opportunity for
covered puts. You can sell short the stock for 87 3/16 and sell the January 75
puts for 8. This represents
approximately a 9% return (more than 50% annualized, based
on 57 days until expiration) should the stock be put to you.
Consumer non-durables
(
$CMR.X |
Quote |
Chart |
News |
PowerRating) continue
to consolidate at high levels. Look for buying
opportunities in calls
and call spreads here on any signs of a breakout.
For you breakout players, major drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating)
broke to new highs on Monday. In light of poor overall market conditions, money
will likely continue to flow into this sector. Look for buying opportunities in
calls and call spreads here.
On the short side, Internet basis the DOT
(
$DOT.X |
Quote |
Chart |
News |
PowerRating)
gapped higher on Monday’s open (a) but reversed to close poorly (b). This
suggests its downtrend remains intact. Look for buying opportunities in puts and
put spreads here.Â
Broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) appears to be
stalling out in day two of a its pullback from lows. Look for buying
opportunities in puts and put spreads here.
Best of
luck with your trading on Tuesday!
P.S. Reminder:
Protective stops on every trade!