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Thu: Top Buys EBAY IWM KBH Top Sells SPY

Primary Trades:

EBAY Sep 27.5 calls at 0.35 or less or Jan 27.5 calls at 1.85 or less are buys. SPY Sep 127 puts at 2 or less, i.e. over 1/2 point bounce above 127 1/2, may partially hedge EBAY calls.

Secondary Trades:

If SPX falls to the low 1,260s, IWM may fall to around 67, which may be an opportunity to buy IWM Aug 67 or Sep 68 calls, for a short-term trade. If KBH falls to around 41 1/2, Sep 45 calls may be a buy.

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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.