Low VIX

  • January 18, 2001
  • Dave Landry

Nike
(
NKE |
Quote |
Chart |
News |
PowerRating), on the  Pullbacks
Off Highs List, may provide an opportunity for covered calls. You can buy the stock at
56 1/16 and sell the April 60 calls for 3 7/8. 
This represents approximately a 14% return (more than 55% annualized, based on
92 days until expiration) should the stock be called away.

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The banks
(
$BKX.X |
Quote |
Chart |
News |
PowerRating), mentioned
recently, still look like they have potential. Continue to look for buying
opportunities in calls and call spreads here, but wait for follow-through to the
upside as they were down on Thursday.

Although biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) was up on Thursday, the sector
still looks vulnerable. Continue to look
for buying opportunities in puts and put spreads here.

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For you OEX traders, the VIX remains at relatively
low levels. Watch for buying opportunities in puts and put spreads on any
signs of a price reversal.

Best of
luck with your trading on Friday!

P.S. Reminder:
Protective stops on every trade!

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