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Mon: Top Buys EBAY Top Sells SPY; Others to Watch: OEX

Primary Trades:

It may be best to take advantage of volatility to shift from SPY Apr 130 or 129 puts into SPY May Jun or Sep 130 puts, because it's uncertain when the inevitable correction will take place.

Some current SPY put prices are: Apr 130 1.25, May 130 1.75, Jun 130 2.30, and Sep 130 3.60. If SPY falls to 125 3/4 in two months, the Jun 130 puts, for example, will be equal to the Apr 135 puts, i.e. rise from 2.30 to 4.50.

Secondary Trades:

EBAY closed at 38 1/4, and the Apr 37.5 calls are 2.10, which may hedge SPY puts (see QQQQ and EBAY charts in previous Top Stock Picks post).

Others to Watch:

If SPX falls to just above its 50-day MA, OEX Apr calls may be a buy for a quick trade.

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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.