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Joined: 28 Dec 2005 Posts: 12643
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Posted: Sun Apr 09, 2006 9:57 am Post subject: Mon: Buys OEX BBH GM Sells SPY IWM PD GOOG |
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Mon: Top Buys OEX BBH GM Top Sells SPY IWM PD GOOG
Primary Trades:
SPY Jun 130 puts are holds, although SPX may rise above 1,305 next week, which is an opportunity to add more SPY Jun 130 puts (or buy SPX Apr or SPY May 130 puts).
Secondary Trades:
The following are more risky trades:
OEX closed at 586 3/4 and may bounce above 590 sometime next week (the next two weeks into options expiration should be volatile). OEX Apr 585 calls may be best.
Several large biotechs report earnings the week after next. It may be best to buy BBH (Biotech Holders Index) Apr 185 or 190 calls rather than calls on individual biotech stocks. BBH may rise into earnings.
GM remains volatile with its small market cap.
May puts should be considered if IWM at 76, PD at 86, and GOOG at 410 (GOOG reports earnings a week from Thu). Also, I may add, Apr options will have huge leverage the week after next, i.e. week of expiration.
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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. |
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