Still Set Up For Puts Part 4
Level 3 Communications
(
LVLT |
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Chart |
News |
PowerRating), mentioned Tuesday night, may provide an opportunity for covered
puts. The stock can be sold short for 50 3/8 and the December 40 puts can
be sold for 2 5/8. This represents approximately a 25% return (over 160%
annualized) based on 53 days until expiration should the stock be put to you.
Internet, mentioned recently, basis the Street.com Internet Index
(
$DOT.X |
Quote |
Chart |
News |
PowerRating), continues lower in spite of the better-than-expected earnings
in Amazon. 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), mentioned Tuesday night, sold off sharply on Wednesday. This
suggests its downtrend remains intact. Continue to look for buying opportunities
in puts and put spreads here.
The
semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, continued their slide on Wednesday.
Continue to look for buying opportunities in puts and put spreads here.
Looking
Ahead
Major
Drugs
(
$DRG.X |
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Chart |
News |
PowerRating) and Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating) broke to new highs on
Wednesday. Both sectors may set up as pullbacks over the next few days.
Best
of luck with your trading on Thursday!
P.S. Reminder:
Protective stops on every trade!