Major Oils Slide / VIX Lows
face=”Arial, Helvetica”>For those willing to assume a high
degree of risk, Power One
(
PWER |
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Chart |
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PowerRating), on the
From Highs List, may present an opportunity for covered
calls. You can buy the stock for 113 15/16, and you can sell
the August 115 calls for 15 5/8. This represents
approximately a 15% return (more than 100% annualized, based
on 49 days until expiration) should the stock be called
away.
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Once
again, major drugs
(
$DRG.X |
Quote |
Chart |
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PowerRating) made new highs. Continue
to look for buying opportunities in calls and call spreads
here.
Telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating), mentioned Thursday night, rallied slightly
on Friday. This suggests that its uptrend from lows remains
intact. Continue to look for buying opportunities in calls
and call spreads here, but continue to focus on the
strongest issues.
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On
the short side, banks
(
$BKX.X |
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Chart |
News |
PowerRating), mentioned recently,
continue to slide. Look for a buying opportunity here in
puts and put spreads.
For you OEX
traders, the VIX is at its lowest level in months. Also,
tonight (Friday) we have a CVR I and CVR II sell signal on
the
Bias Page. Look for buying opportunities in puts and put
spreads, but wait for confirmation as the index closed up on
Friday.
Going
forward: Major oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating) appear to be rolling
over. Begin watching for buying opportunities in puts and
put spreads here.
Best
of luck with your trading on Monday!
P.S. Reminder:
Protective stops on every trade!