Oil Slides / Brokers Glide
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”>Nortel
(
NT |
Quote |
Chart |
News |
PowerRating), on the
Momentum List, may present an opportunity for covered
calls. You can buy the stock for 80 13/16, and you can sell
the September 90 calls for 3 1/4. This represents
approximately a 15% return (more than 100% annualized, based
on 54 days until expiration) should the stock be called
away.
width=”470″ height=”320″>
face=”Arial, Helvetica”>Broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating),
mentioned recently, continued to rally on Friday. This
suggests that its uptrend remains intact — at least until
the old highs are challenged. Continue to look for buying
opportunities in calls and call spreads here.
face=”Arial, Helvetica”>Biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) appear to
have formed another high-level "micro" double
bottom. Look for buying opportunities in calls and call
spreads here.
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face=”Arial, Helvetica”>On the short side, major oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating)
appear to be making another leg down from a major top. Look
for buying opportunities in puts and put spreads here.
For
you OEX traders, the VIX remains at very low levels on a
relative basis. Continue to look for buying opportunities in
puts and put spreads here.
Looking
ahead, it’s important for the semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) to
stabilize in this area. Otherwise, it looks like they could
break down from a double top.
Best
of luck with your trading on Monday!
P.S. Reminder:
Protective stops on every trade!