One Rally Left In Major Oils?
Integrated
Device Technology
(
IDTI |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List, may provide an opportunity for
covered calls. You can buy the stock for 96 15/16 and sell the November 110 calls
for 6 7/8. This represents
approximately a 20% return (more than 140% annualized, based
on 52 days until expiration) should the stock be called
away.
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Oil
service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), mentioned last night, appears to be trying to mount one
more rally out of a pullback. Look for buying opportunities in calls and call
spreads here.
Major oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating) also bounced off
their 61.8% retracement of their recent up
leg. This suggests these stocks may have one more rally to old highs left in
them. Look for buying opportunities in calls and call spreads here.
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Looking
ahead
once
again, the
semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), led by Intel
(
INTC |
Quote |
Chart |
News |
PowerRating), remain vulnerable. These stocks
may offer shorting opportunities on the next pullback (rally).
Biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) may be failing at a near term double top and possibly a
longer-term triple top.Â
Best
of luck with your trading on Tuesday!
P.S. Reminder:
Protective stops on every trade!