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Joined: 28 Dec 2005 Posts: 12643
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Posted: Wed May 03, 2006 8:07 pm Post subject: Thu: Buys MSFT DELL IMGN Sells SPY IWM BHI PD RTP AEM |
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Thu: Top Buys MSFT DELL IMGN Top Sells SPY IWM BHI PD RTP AEM
Primary Trades:
SPY may fall to 128 and IWM to 73 1/2 in May or Jun. SPY Jun 133 or Jul 132 puts and IWM Jun 78 or Aug 77 puts may be buys on market bounces.
Secondary Trades:
Calls: Nasdaq is relatively undervalued compared to many other indices. MSFT Jul 25 calls may be bought at 0.30 or 0.35, with the potential to at least double. DELL is beaten down enough to bounce. Jun 25 calls may be best. IMGN reports earnings after the close Thu. The May 2.5 calls may be bought at 1.55, which is currently 100% intrinsic value.
Puts: BHI should continue to pullback below 85 or towards 80. May 90 puts may be best. PD Jun 90 puts are buys. If RTP and AEM bounce, Jun or Jul puts are buys.
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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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