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Wed: Top Buys EBAY DOW Top Sells SPY

Primary Trades:

SPY Jun 130 or 129 puts, or Sep 130 puts, are buys on market bounces. A 9% SPX correction from 1,310 is 1,192. If SPX has topped, SPY has the potential to fall below 120.

Secondary Trades:

EBAY Apr 37.5 and DOW Apr 40 calls may be used to partially hedge SPY Apr 130 or 129 puts, 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.