PeakTrader.com

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Tue: Top Buys MXIM DOW KBH AET CI Top Sells SPY IWM

Primary Trades:

Calls: Nasdaq should rise with the semiconductors and MXIM is relatively undervalued. Jul 30 (or Jun 30) calls are buys on dips. DOW may continue the uptrend and Jul 40 calls may be best at this point.

Puts: SPY and IWM Jul puts remain buys on market bounces.

Secondary Trades:

Calls: Selling seems overdone with KBH, a residential homebuilder, and Jul 55 calls may be best. Bargain hunters may buy AET and CI. AET Jul 40 calls and CI Jun 90 calls seem best.

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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.