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Wed: Top Buys None Top Sells PCU PD FCX AEM SPY IWM NUE GOOG

Primary Trades:

The risks are much smaller for longer-term puts on PCU PD FCX AEM SPY and IWM. PCU closed at 100. PCU May 95 puts are 3.60 (a much more riskier trade is the Apr 100 puts, which may be bought below 1.80). AEM closed at 34 1/4. The AEM May 35 puts are 2.25. PD closed at 91 1/4. The PD May 90 puts are 4.90 (and the Apr 92.5 puts are 2.20). FCX May 65 or 70 puts may be buys, which can both double on a five-point FCX pullback (also, FCX Apr 70 puts for a much more riskier trade). RTP May 220 puts fell sharply this week. A 10% pullback of these stocks can take place quickly. Longer-term puts beyond May can also be bought. Moreover, SPY Jun 130 to 132 puts and IWM Apr 78 or May 77 puts are buys.

Secondary Trades:

NUE reports earnings Thu and closed above 116 3/4. The NUE May 115 puts are 4.50 and Apr 115 puts are 1.65. GOOG rose over 10 points in afterhours on YHOO earnings. GOOG earnings is Thu. May puts may be a buy (the GOOG Apr puts are too 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.