More Trouble With Drugs
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”>3 Com
(
COMS |
Quote |
Chart |
News |
PowerRating), on the
From Highs List, began rallying out of a pullback on
Thursday (a). The stock may present an opportunity for
covered calls. You can buy the stock for 66 5/8, and you can
sell the August 70 calls for 4 3/4. This represents
approximately a 12% return (more than 150% annualized, based
on 29 days until expiration) should the stock be called
away.
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face=”Arial, Helvetica”>Internet
(
$IIX.X |
Quote |
Chart |
News |
PowerRating) appears to
be resuming its uptrend from its recent breakout from a
consolidation. Look for buying opportunities in calls and
call spreads here.
face=”Arial, Helvetica”>Broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating)
rallied nicely on Thursday, reversing Wednesday’s sell-off.
This suggests that its uptrend remains intact and that it
has the potential to challenge its old highs. Look for
buying opportunities in calls and call spreads here.
face=”Arial, Helvetica”>On the short side, drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating),
mentioned Wednesday night, sold off again on Thursday. It
looks like a potential head-and-shoulders top is
being put in. Continue to look for buying opportunities in
puts and put spreads.
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Best
of luck with your trading on Friday!
P.S. Reminder:
Protective stops on every trade!