SOX Still Vulnerable
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”>Lehman Brothers
(
LEH |
Quote |
Chart |
News |
PowerRating), mentioned
Tuesday night, may still present an opportunity for covered
calls. You can buy the stock for 118 5/16, and you can sell
the October 125 calls for 7 7/8. This represents
approximately a 12% return (more than 50% annualized, based
on 79 days until expiration) should the stock be called
away.
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On
the short side, 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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Continuing
on the short side, telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) is a pattern
similar to the semis. Look for buying opportunities in puts
and put spreads here.
Best
of luck with your trading on Thursday!
P.S. Reminder:
Protective stops on every trade!