PeakTrader.com

[administrator]

Thu: Buys GE Sells SPY IWM OIH CME GOOG BRCM

Primary Trades:

SPY Mar puts may be a buy above SPX 1,270 and IWM Feb in-the-money or May puts may be a buy above 71 1/2, since fundamental and technical indicators are bearish.

OIH may rise somewhat into the OPEC meeting Tue, which is an opportunity to buy puts. OIH bounced off the 10-day MA today. However, it may fall another 15 points to major support at 136.

Secondary Trades:

GE closed at 32 3/4, it's currently severely oversold, and may bounce about one point short-term. The Feb 30 calls can be used to hedge other puts.

CME and GOOG both report earnings Tue, and have the potential to fall sharply.

BRCM reports earnings after the close tomorrow. If BRCM rises into earnings, Mar 60 puts at 4 or Feb 60 puts at 3.40 or lower 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.