Still Set Up For Puts Part 3
Due to
the lack of covered call opportunities and the fact that the overall market
remains vulnerable, I thought it would be interesting to look for covered put
opportunities. Level 3 Communications
(
LVLT |
Quote |
Chart |
News |
PowerRating) may provide such an
opportunity. The stock can be sold short for 50 1/2 and the December 40 puts can
be sold for 2 5/8. This represents approximately a 25% return (over 160%
annualized) based on 54 days until expiration should the stock be put to you.
Internet, mentioned Monday night, basis the Street.com Internet Index
(
$DOT.X |
Quote |
Chart |
News |
PowerRating), appears to be resuming its downtrend. Look for buying
opportunities in puts and put spreads here but be warned, the fact that Amazon
announced better-than-expected earnings after the close could lift this sector
early on.
The
semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), mentioned Monday night, resumed their downtrend on
Tuesday. Continue to
look for buying opportunities in puts and put spreads here.
Continuing
on the short side, Retail
(
$RLX.X |
Quote |
Chart |
News |
PowerRating) mentioned recently, still looks poised
to resume its downtrend. Continue to
look for buying opportunities in puts and put spreads here.
Telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) stalled out on Tuesday after spiking higher earlier in the day.
This suggests its strong downtrend remains intact. Look for buying opportunities
in puts and put spreads here.
Best
of luck with your trading on Wednesday!
P.S. Reminder:
Protective stops on every trade!