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Mon: Top Buys EBAY Top Sells SPY Others to Watch: OEX SPX OIH

Primary Trades:

SPY Mar 128 to 130 puts at SPX in the low 1,270s, since it may be assumed the downtrend is incomplete.

Secondary Trades:

EBAY closed at 39 1/2. The Feb 37.5 calls may be bought below 2.20 and the Feb 40 calls may fall below 0.50 Mon. Feb Max Pain is 42.5, although the value of calls is 3 1/2 times greater than the value of puts (which is bearish, since the Put/Call is a contrarian indicator). EBAY fell to 38 3/4 Fri, which was the lowest level since Oct, in part, because GOOG has fallen sharply. However, EBAY may rise into the low 40s at some point next week.

OEX Feb 570 calls and SPX Feb 1,275 puts may be traded within a potential SPX mid-1250s to low-1270s range next week.

OIH calls around 140 and puts about 150 may be buys (Mar or Feb options).

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Primary Trade: An intermediate or long term trade. Timing can be off substantially. Volatility not a factor. Risk is low to moderate. Potential return is often moderate.

Secondary Trade: A short term trade. Timing must be accurate or volatility must be high. Risk is high. Potential return is high.

Secondary Trades should be generally avoided, although considered. Note: If Secondary Trades are taken, they may affect Primary Trades.