VIX At Major Lows
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”>OSI Pharmaceuticals
(
OSIP |
Quote |
Chart |
News |
PowerRating), on
the
From Highs List, may present an opportunity for covered
calls. You can buy the stock for 43 1/2, and you can sell
the September 45 calls for 4 1/4. This represents
approximately a 13% return (more than 140 % annualized,
based on 32 days until expiration) should the stock be
called away. The October 45s, trading at 6 3/8, also look
attractive.
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Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, began rallying out of a
flag formation on Monday. Continue to look for buying
opportunities in calls and call spreads here.
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Broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) broke to new highs again on Monday. Continue
to look for buying opportunities in calls and call spreads
here — or, better yet, wait for the next pullback.
The
VIX is now at its lowest level of the year. This suggests
that there may be upcoming buying opportunities in OEX puts
and put spreads. As usual, just wait for follow-through, as
the OEX has been strong as of late.
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Looking
Ahead
Oil
service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) is just shy of taking out its
three-month highs. Watch to see the nature of the first
pullback after this happens. If it doesn’t fail, then it may
set up for buying opportunities in calls and call spreads.
Best
of luck with your trading on Tuesday!
P.S. Reminder:
Protective stops on every trade!