Semis 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”>Due to the continued market slide,
it’s becoming difficult to find opportunities for covered
calls. With that said, Genzyme
(
GENZ |
Quote |
Chart |
News |
PowerRating), mentioned
Wednesday night and on the
From Highs List, may still present an opportunity for
covered calls. You can buy the stock for 68 15/16, and you
can sell the September 70 calls for 4 3/4. This represents
approximately an 8% return (more than 80% annualized, based
on 35 days until expiration) should the stock be called
away.
For
those looking for a way to play Plantronics
(
PLT |
Quote |
Chart |
News |
PowerRating),
mentioned in my
Outlook, the August and September slightly in-the-money
and at-the-money calls appear to be fairly priced.
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Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating) sold off on Thursday but stopped right
around the area of its recent breakout (a). This suggests
that its uptrend may be intact. Look for buying
opportunities in calls and call spreads, but wait for a
resumption of the uptrend.
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Continuing
on the short side, the Nets
(
$DOT.X |
Quote |
Chart |
News |
PowerRating), mentioned
recently, appear to be resuming their downtrend. Look for
buying opportunities in puts and put spreads here.
The
semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, still look
vulnerable. Continue to look for buying opportunities in
puts and put spreads here.
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Retail
(
$RLX.X |
Quote |
Chart |
News |
PowerRating), also mentioned recently, still looks
vulnerable. Continue to 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!