PowerRating), on the Pullbacks
Off Highs List, may provide an opportunity for covered calls. You can buy the stock for
90 1/16 and sell the December 95 calls
for 8 5/8. This represents
approximately a 15% return (more than 170% annualized, based
on 32 days until expiration) should the stock be called
I’ve been bearish on the semis ]$SOX.X|$SOX.X]. However, the fact that the lows
have held, makes me wonder if there is a tradable bounce in here. Therefore, for
the nimble only, look for buying opportunities in calls and call spreads
here–just don’t overstay your welcome as the long-term trend remains down.
On Monday, after stabbing higher, the VIX
reversed to close poorly. The fact that the low of the VIX is above it’s 10-day
moving average and the fact that the close is more than 10% above that same
average suggests that volatility has the potential to revert back to its
mean.Â See tonight’s stock outlook for more details. With that said, you
might want to look for option strategies which seek to capitalize on the
potential for an implosion in volatility.Â
luck with your trading on Monday!
Protective stops on every trade!
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