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Joined: 28 Dec 2005 Posts: 12643
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Posted: Sat Apr 01, 2006 10:51 am Post subject: Mon: Buys OEX DOW Sells SPX SPY IWM GOOG |
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Mon: Top Buys OEX DOW Top Sells SPX SPY IWM GOOG
Primary Trades:
Apr options expire in three weeks and a lot can happen before then. IWM closed at 76, perhaps, in part, because of a strong quarter for window dressing (IWM rose 10 points in the first quarter). The IWM Apr 76 puts closed at 1.15. IWM may pullback to 74 at some point within the next three weeks.
SPY and IWM long-term puts remain buys on market bounces.
Secondary Trades:
SPX Apr puts and OEX Apr calls can be traded for either short-term gains or to hedge.
DOW Apr or May 40 calls may be a buy for a short-term trade.
GOOG closed at 390. Apr puts may be a buy above 390, although expensive.
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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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