VIX Reverses

April 30, 2001
Dave Landry

In spite of most of tech stalling out,
the semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), mentioned recently, appear to be holding up well.
Continue to look for buying opportunities in calls and call spreads here.

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Software
(
$GSO.X |
Quote |
Chart |
News |
PowerRating), mentioned recently,
still looks poised to rally out of a cup and handle. Continue to look for buying
opportunities here in calls and calls spreads.

src=”https://tradingmarkets.com/media/images/Landry4/gso043001.gif” width=”470″ height=”320″>

For your OEX
traders, the VIX reversed from relatively lows levels creating two CVR
sell signals on the Market
Bias Page. This suggests we could see an increase in implied volatility and
a decrease in price in the OEX–the best of both worlds for an option buyer.
Therefore, look for buying opportunities in puts and put spreads.

Follow Up

Biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), mentioned recently,
has been up sharply as of late. If you have profits here, you might want to lock
in piece.