Where The Money Is
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) may present an opportunity for
covered calls. You can buy the stock for 62 13/16 and sell the November 65 calls
for 4. This represents
approximately a 10% return (more than 70% annualized, based
on 48 days until expiration) should the stock be called
away.
width=”470″ height=”320″>
Banks
(
$BKX.X |
Quote |
Chart |
News |
PowerRating) appear to be attempting to recover from a deep correction. On
any additional follow-through, look for buying opportunities in calls and call
spreads.
width=”470″ height=”320″>
Other
financials such as broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) and insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating) appear to be recovering from deep corrections. Look for buying
opportunities in calls and call spreads.
Tonight
(Tuesday), we have three CVR Buy signals on the Market
Bias Page. This suggests there 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 Wednesday!
P.S. Reminder:
Protective stops on every trade!