Semis OK/Telecom Rallies
face=”Arial, Helvetica”>Microsoft
(
MSFT |
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PowerRating), on the
With Handle Patterns List, may present an opportunity
for covered calls. You can buy the stock for 80 and sell the
August 85 calls for 2 9/16. This represents approximately a
9% return (more than 70% annualized, based on 46 days until
expiration) should the stock be called away.
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Telecom
(
$XTC.X |
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PowerRating), mentioned recently, continues to rally out
of a pullback. Continue to look for buying opportunities in
calls and call spreads here.
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Last
Thursday (a), I wrote that "Unless the semis rally
soon, they could be in trouble." Since then, they
rallied. This suggests that their uptrend remains intact.
Look for buying opportunities in calls and call spreads.
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Biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) appear to have stabilized and have formed a
high-level "micro" double bottom. Look for buying
opportunities in calls and call spreads here.
Best
of luck with your trading on Wednesday!
P.S. Reminder:
Protective stops on every trade!