Range Rally
With option expiration two days away, now may
be the time to consider gamma plays in stocks that are set up as swing trades. Keep in mind that this is a risky strategy
and should only be applied by the nimble and experienced. Also, don’t forget that
these options can and often do expire worthless.
Telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) formed a
bullish outside day on Wednesday. This suggests that it has the potential to
rally our of a cup and handle. Look for buying
opportunities in calls and call spreads here.
Software
(
$GSO.X |
Quote |
Chart |
News |
PowerRating) rallied nicely off
the bottom of its recent range. This suggests that it that it has the potential
to continue its uptrend from lows. Look for buying opportunities in calls
and call spreads here.
Internet
(
$IIX.X |
Quote |
Chart |
News |
PowerRating)
also rallied nicely off of the bottom of its recent range. This suggests that it
has the potential to resume its rally from lows. Look for buying opportunities
in calls and call spreads here.
Follow Up
Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating),
mentioned Tuesday night, was up sharply on Wednesday. If you have profits here,
you might want to lock in a piece.
Best of
luck with your trading on Thursday!
P.S. Reminder:
Protective stops on every trade!