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Joined: 28 Dec 2005 Posts: 12643
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Posted: Mon Mar 27, 2006 6:07 pm Post subject: Tue: Buys EBAY DOW Sells SPY IWM |
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Tue: Top Buys EBAY DOW Top Sells SPY IWM
Primary Trades:
SPY Jun 130 puts should eventually make big gains, although it's uncertain if the market will continue to rise short-term.
IWM May 74 puts are buys on market bounces. IWM is more sensitive to interest rates and more volatile than SPY.
Secondary Trades:
The following are more risky trades:
EBAY May 35 calls and DOW Apr 40 calls may be used to partially hedge puts.
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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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