Semis Reverse From Major Slide
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”>Electronic Arts
(
ERTS |
Quote |
Chart |
News |
PowerRating), on the
From Highs List, may present an opportunity for covered
calls. You can buy the stock for 85 3/8, and you can sell
the September 95 calls for 4 3/8. This represents
approximately a 16% return (more than 130% annualized, based
on 43 days until expiration) should the stock be called
away.
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Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating) closed well on Thursday and looks poised to
rally out of a high-level flag formation. Look for buying
opportunities in calls and call spreads here.
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The
semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), mentioned recently as a put play,
dropped more than 7% on Thursday (a) before reversing to
close well (b). For the nimble only, look for a buying
opportunity in calls and call spreads here.
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On
the short side, retail
(
$RLX.X |
Quote |
Chart |
News |
PowerRating) appears to be
resuming its downtrend. Look for buying opportunities in
puts and put spreads here.
The
major oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating) rallied earlier in the day but
reversed to close poorly. This suggests that their downtrend
remains intact. Look for buying opportunities in puts and
put spreads here.
Best
of luck with your trading on Friday!
P.S. Reminder:
Protective stops on every trade!