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Wed: Top Buys QQQQ EBAY Top Sells SPY DIA

Primary Trades:

QQQQ Jun 38 or 39 calls are a buy for a potential rise to 41. EBAY May Max Pain is 32.50, although the value of calls far exceed value of puts (unlike QQQQ where puts exceed calls). However, EBAY Jun 30 calls are a buy. SPY and DIA Jul puts are buys near SPX 1,300, to partially hedge. Also, building-up cash on a rally later this week and wait for overreaction to upside or downside.

Secondary Trades:

Many May in-the-money options will be about 100% intrinsic value tomorrow. QQQQ May 38 calls and EBAY May 30 calls may be 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.