Telecom Resumes Rally
face=”Arial, Helvetica”>For those willing to assume a high
degree of risk, RealNetworks
(
RNWK |
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Chart |
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PowerRating), on the
Where The Action Is List, may present an opportunity for
covered calls. You can buy the stock for 52 11/16, and you
can sell the August 55 calls for 6. This represents
approximately a 16% return (more than 90% annualized, based
on 60 days until expiration) should the stock be called
away.
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Telecom
(
$XTC.X |
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Chart |
News |
PowerRating), mentioned Friday night, began rallying out
of its first pullback since its meltup from lows. Continue
to look for buying opportunities in calls and call spreads
here.
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On
the short side, even though banks
(
$BKX.X |
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Chart |
News |
PowerRating) were up on
Monday, they still look vulnerable. Continue to look for
buying opportunities in puts and put spreads here.
For
the OEX trader, once again, the VIX remains at relatively
low levels. Continue to look for a buying opportunity in
puts and put spreads, but wait for some sort of reversal, as
the market is in rally mode.
Follow-up:
Biotech
(
$BTK.X |
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Chart |
News |
PowerRating), mentioned recently, continued its
rally out of a consolidation on Monday. If you’re not
already positioned, you might want to begin waiting for the
next pullback/consolidation before attempting an entry.
Best
of luck with your trading on Tuesday!
P.S. Reminder:
Protective stops on every trade!