Telecom Vulnerable
size=”2″ face=”Arial, Helvetica”>For those of you planning
to attend the TradingMarkets2000 First Annual Traders
Conference at the Venetian Resort, Hotel & Casino in Las
Vegas on October 13-15, I’ll be speaking on Saturday
afternoon following Jay Leno. I’ll also be at the cocktail
party Friday night. Sign up soon, as space is limited.
face=”Arial, Helvetica”>Cirrus Logic
(
CRUSI |
Quote |
Chart |
News |
PowerRating), on the
From Highs List, may present an opportunity for covered
calls. You can buy the stock for 28 3/8, and you can sell
the October 30 calls for 5. This represents approximately a
13% return (more than 80% annualized, based on 53 days until
expiration) should the stock be called away.
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Broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) hit all-time highs on Monday. For the
breakout players, look for buying opportunities in calls and
call spreads here.
On
the short side, telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) has formed a shallow
pullback from lows and looks poised to resume its strong
downtrend. Look for buying opportunities in puts and put
spreads here.
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Once
again, the VIX hit 13-month lows and is just shy of its July
1999 lows (a). Continue to look for buying opportunities in
OEX puts and put spreads.
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Follow-up
Major
oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating) and oil service
(
$XOI.X |
Quote |
Chart |
News |
PowerRating),
mentioned recently, were up nicely on Monday. You might want
to take a piece off the table here, as these markets are
getting frothy.
Best
of luck with your trading on Monday!
P.S. Reminder:
Protective stops on every trade!