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Mon: Buys JBLU Sells SPY IWM OIH SLB SU PCU AEM CME

 
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PostPosted: Sun Apr 23, 2006 4:32 pm    Post subject: Mon: Buys JBLU Sells SPY IWM OIH SLB SU PCU AEM CME Reply with quote

Mon: Top Buys JBLU Top Sells SPY IWM OIH SLB SU PCU AEM CME

Primary Trades:

SPY Jun 132 puts, IWM Aug 77 puts, OIH May 165 puts, and SLB May 70 puts. SPY and IWM puts may hedge OIH and SLB puts. However, within a month, SPY IWM OIH and SLB may all be substantially lower. Also, SU is a relatively overvalued energy stock that moves with OIH. May 90 puts are 4.20.

Secondary Trades:

The following are more risky trades:

Calls: JBLU reports earnings Tue, may rally into earnings, and a relief rally may take place on earnings.

Puts: PCU is a relatively overvalued copper stock. May 100 puts at 7.00 or lower may be best. AEM has the potential to fall five points on a gold pullback. May 35 puts are below 2. CME closed at 500 (Max Pain) and reports earnings Tue. May 480 puts may be bought at 10.50.

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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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