VIX Remains Low
rmal” align=”left”>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”>Cardinal Health
(
CAH |
Quote |
Chart |
News |
PowerRating), on the
From Highs List, sold off earlier on Tuesday but
reversed to close well. This suggests that its uptrend
remains intact. Based on this, the stock may present an
opportunity for covered calls. You can buy the stock for 72
3/8, and you can sell the September 75 calls for 3 1/8. This
represents approximately an 8% return (more than 70%
annualized, based on 37 days until expiration) should the
stock be called away.
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The
semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) mentioned recently, still look
vulnerable. Continue to look for buying opportunities in
puts and put spreads here.
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Continuing
on the short side, telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating), mentioned
recently, appears to be resuming its downtrend. Continue to
look for buying opportunities in puts and put spreads here.
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The
VIX remains at its lowest levels since February. This,
combined with an overbought OEX, suggests that there may be
an upcoming buying opportunity in OEX puts and put spreads.
As usual, just wait for follow-through, as the index has yet
to turn around.
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Best
of luck with your trading on Wednesday!
P.S. Reminder:
Protective stops on every trade!