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Joined: 28 Dec 2005 Posts: 12643
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Posted: Sun Jul 23, 2006 6:40 pm Post subject: Mon: Buys EBAY KBH DOW Sells DIA; Others to Watch: OIH |
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Mon: Top Buys EBAY KBH DOW Top Sells DIA; Others: OIH
Primary Trades:
EBAY Aug Sep or Oct 27.5 calls may be best. KBH Oct 45 calls are buys on a small pullback. DOW Sep 40 calls may be bought at 0.40 before earnings Thu (also, DD reports earnings Tue). DIA Sep 110 puts can be used to hedge.
Secondary Trades:
OIH is 130. Aug 140 calls may be a buy. However, OIH may fall to 126 to buy Aug 135 calls.
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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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