PeakTrader.com

[administrator]

Fri: Buys OEX Sells SPX SPY IWM AU NEM GG--Others OIH

Primary Trades:

The employment reports before the open will determine if the market opens high or low, and further reports 30 minutes after the open should generate volatility. However, if SPX rises above 1,275, SPY and IWM Mar puts may be buys. If SPX rises above 1,280, SPX Feb puts may be a buy. Also, volatility may pick up over the next two weeks, before Feb options expire.

Secondary Trades:

OEX Feb 565 or 570 calls may be a buy on a lower open and can hedge puts. SPX fell below the 50-day MA intraday, but closed above it.

AU NEM and GG may fall sharply within three months (see AU chart in Top Stock Picks section). Puts may be buys when those stocks bounce.

OIH Mar or later calls or puts may be buys below 146 or above 152, in case volatility picks-up.

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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.