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Joined: 28 Dec 2005 Posts: 12643
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Posted: Thu Apr 06, 2006 2:11 pm Post subject: Fri: Buys OEX DOW GM Sells SPX SPY IWM FCX OIH GOOG |
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Fri: Top Buys OEX DOW GM Top Sells SPX SPY IWM FCX OIH GOOG
Primary Trades:
SPY and IWM long-term puts remain buys on a potential steep pullback in the second quarter.
Secondary Trades:
If the employment reports are weaker than expected, a one day short-squeeze may take place, where the market generally rises throughout the day. Consequently, OEX Apr 590 or 595 calls may be a buy, on a small pullback, with a stop loss, in case profit taking takes place.
DOW Apr 40 calls have the potential to double.
GM remains volatile with its small market cap.
SPX Apr 1,310 puts may hedge OEX Apr 590 or 595 calls, taking advantage of volatility (it's important to note the time value of Apr options may fall Fri afternoon, before the weekend).
FCX has the potential to pullback sharply. Apr 65 or 60, or May 60 puts may be buys.
Oil closed just below 68. If oil pulls-back, OIH may pullback sharply.
GOOG has the potential to fall below 350 quickly.
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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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