Oil Service Reverses
size=”2″ face=”Arial, Helvetica”>For those of you planning
to attend the TradingMarkets2000 First Annual Traders
Conference at the Venetian Resort, Hotel & Casino in Las
Vegas on October 13-15, I’ll be speaking on Saturday
afternoon following Jay Leno. I’ll also be at the cocktail
party Friday night. Sign up soon, as space is limited.
face=”Arial, Helvetica”>SCI Systems
(
SCI |
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 59 3/4, and you can
sell the October 60 calls for 5. This represents
approximately a 10% return (more than 50% annualized, based
on 54 days until expiration) should the stock be called
away.
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face=”Arial, Helvetica”>The nearby at-the-money and the
slightly out-of-the-money options on Goldman Sachs
(
GS |
Quote |
Chart |
News |
PowerRating),
on the
List, are fairly priced.
Oil
service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) sold off earlier on Friday, but
reversed to close well. This action may have knocked out the
weak hands and could clear the way for the sector to trade
higher. Look for buying opportunities in calls and call
spreads here.
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The
major oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating) appear to be finding support near
the area of their recent breakout. Look for buying
opportunities in calls and call spreads here.
Once
again, the VIX remains near yearly lows. Continue to look
for buying opportunities in OEX puts and put spreads.
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Best
of luck with your trading on Monday!
P.S. Reminder:
Protective stops on every trade!