PeakTrader.com

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Mon: Top Buys OEX SPY PFE PPH JNPR Top Sells NUE FCX CME GOOG IWM

Primary Trades:

There are no primary trades, except if SPX rises to 1,300, SPY Jun 130 puts are buys.

Secondary Trades:

Apr options will have huge leverage the week of options expiration next week.

Calls: OEX may close the week either at 590, 585, or between 585 and 590. OEX Apr 580 or 585 calls can be traded buying on pullbacks. SPY may rise to 130 and Apr 127 calls may be buys on pullbacks. PFE reports earnings Wed, has pulled-back over the past month, and closed at 24 1/2. The May 25 calls may be bought at 0.35 or 0.40 or the Apr 25 calls may be bought at 0.10 or 0.15. Also, instead of PFE calls, PPH Apr 70 calls may be bought at 0.25 or 0.30. Some stocks will make huge moves on earnings. JNPR reports earnings Wed and closed at 19.30. The Apr 19 calls are 0.80 or 0.85.

Puts: Steel stocks had huge rallies over the first quarter, NUE reports earnings Thu and closed at 109 1/2. The Apr 110 puts may be bought at 2.80 or less. The May 105 puts are 3.50. FCX reports earnings Tue and closed at 63 1/2. The Apr 65 puts are 2.55 and the May 60 puts are 2.00. CME closed slightly above 490 and may close the week at 490. So, Apr 500 puts may be buys near 500 or May 480 puts for a longer-term trade. GOOG reports earnings Thu. GOOG Apr options are expensive, since a large earnings move is priced-in. So, May puts are better buys. IWM May puts may be used to hedge.

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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.