VIX Hits Lows
face=”Arial, Helvetica”>For those willing to assume a high
degree of risk, Enzo Biochem
(
ENZ |
Quote |
Chart |
News |
PowerRating), a stock in a fast
move and on the
Momentum List, may present an opportunity for covered
calls. You can buy the stock for 60 11/16, and you can sell
the July 65 calls for 7 5/8. This represents approximately a
20% return (more than 200% annualized, based on 36 days
until expiration) should the stock be called away.
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On
Wednesday, gaming
(
$GAX.X |
Quote |
Chart |
News |
PowerRating) broke to new highs on an
expansion of range out of a high-level consolidation. Look
for a buying opportunity in calls and call spreads here, but
be warned: Many issues and the sector itself can trade thin.
Securities
brokers/dealers
(
$XBD.X |
Quote |
Chart |
News |
PowerRating), mentioned Wednesday night,
began rallying out of their first pullback since their major
double bottom. Continue to look for a buying opportunity in
calls and call spreads here.
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For
the OEX trader, the VIX is at its lowest level in more than
two months (a). This suggests that it is due to increase as
volatility reverts to its mean. Began watching for a buying
opportunity in puts and put spreads here.
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Best
of luck with your trading on Thursday!
P.S. Reminder:
Protective stops on every trade!