VIX Reverses
Just
a reminder, I’ll be speaking on the afternoon of Saturday, October 14th at the TradingMarkets2000 First Annual Traders
Conference. I’ll also be available for one-hour private workshop held later
that day.
I’m pleased to announce that we recently launched the Trader’s
Galleria. Check it out, there you’ll find books, software, trading courses,
computers and just about everything else a trader needs to be successful. You
can even pre-order my upcoming book on swing
trading at a 20% discount.
face=”Arial, Helvetica”>Capital One FinancialÂ
(
COF |
Quote |
Chart |
News |
PowerRating), mentioned Tuesday
night, may still present an opportunity for
covered calls. You can buy the stock for 62 1/2 and sell the November 65 calls
for 3 5/8. This represents
approximately a 10% return (more than 70% annualized, based
on 47 days until expiration) should the stock be called
away.
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The
nets
(
$II.X |
Quote |
Chart |
News |
PowerRating) appear to be attempting to rally after recently finding
support near their 61.8% retracement levels. On any additional follow-through, look for buying opportunities in calls and call
spreads here.
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The biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) have rallied to
top of their recent trading range. This suggests their uptrend remains intact.
Look for buying opportunities in calls and call spreads here.
The VIX
reversed after probing higher earlier in the day. This sets up a repeat CVR VI
buy signal on the Market
Bias Page. This suggests their may be opportunities that seek to capitalize
on a decrease in implied volatility. Be warned though, these strategies offer
limited gains and virtually unlimited risk. Therefore, make sure you fully
understand these risks and consider hedging your position.
Best
of luck with your trading on Thursday!
P.S. Reminder:
Protective stops on every trade!