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Joined: 28 Dec 2005 Posts: 12643
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Posted: Wed Mar 22, 2006 9:40 pm Post subject: Thu: Buys EBAY DOW Sells SPY IWM OEX SPX |
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Thu: Top Buys EBAY DOW Top Sells SPY IWM OEX SPX
Primary Trades:
SPY Jun 130 puts on market bounces should eventually make big gains on a potential 9% correction.
IWM May 74 puts (or Apr 75 puts for a more risky trade) should work well with SPY puts (i.e. small and large cap ETFs).
Secondary Trades:
EBAY Apr 37.5 calls may be too risky at this point. So, Apr 35, May 35 or 37.5, or longer-term calls can be used to hedge puts. Also, EBAY has been volatile.
DOW Apr 40 puts may be used to partially hedge SPY Jun 130 puts. However, DOW typically underperforms on higher oil prices.
OEX Apr 595 or SPX Apr 1,300 or 1,310 puts may be worth the risk at SPX 1,310 for quick trades.
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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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