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Joined: 28 Dec 2005 Posts: 12643
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Posted: Tue Mar 28, 2006 5:55 pm Post subject: Wed: Buys AAPL INTC SMH DOW Sells SPY IWM OIH VLO |
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Wed: Top Buys AAPL INTC SMH DOW Top Sells SPY IWM OIH VLO
Primary Trades:
SPY Jun or Sep 130 puts and IWM May or later puts are buys on market bounces. Many indicators continue to suggest the market will be much lower this summer, if not sooner, e.g. in Apr.
Secondary Trades:
AAPL Apr 55 calls, INTC May 17.5 calls, SMH Apr 35 calls, and DOW Apr or May 40 calls may be used to partially hedge SPY and IWM puts. A pick-up in volatility may eventually make gains on both calls and puts.
OIH will be volatile tomorrow and Apr 150 or 145 puts may be a buy if OIH bounces. Also, VLO Apr 60 puts may be a buy above 60 1/4. Gasoline prices influence VLO, while oil prices influence OIH.
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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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