Trouble With Drugs
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”>Sanmina
(
SANM |
Quote |
Chart |
News |
PowerRating), on the
Momentum List, may present an opportunity for covered
calls. You can buy the stock for 98 1/2, and you can sell
the October 100 calls for 11 5/8. This represents
approximately a 14% return (more than 80% annualized, based
on 58 days until expiration) should the stock be called
away.
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face=”Arial, Helvetica”>Telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) sold off on
Wednesday, but stopped near its recent consolidation. Look
for buying opportunities in calls and call spreads, but wait
for follow-through to the upside.
face=”Arial, Helvetica”>Drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating), which are
supposed to be defensive issues, sold off with the overall
market. Going forward, it’s important for them to stabilize.
Otherwise, look for buying opportunities in puts and put
spreads on continued weakness.
For
you OEX traders, once again, the VIX remains at relatively
low levels. Continue to look for buying opportunities in OEX
puts and put spreads.
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Best
of luck with your trading on Thursday!
P.S. Reminder:
Protective stops on every trade!