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Joined: 28 Dec 2005 Posts: 12643
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Posted: Thu Jun 01, 2006 8:35 pm Post subject: Fri: Buys DOW KBH MXIM Sells SPY IWM |
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Fri: Top Buys DOW KBH MXIM Top Sells SPY IWM
Primary Trades:
SPY and IWM Jun or Jul in-the-money puts are buys on market bounces.
Secondary Trades:
DOW KBH and MXIM calls are buys on pullbacks, e.g. DOW Jul 40 calls at 1.20, KBH Jul 50 calls at 4, and MXIM Nov 35 calls at 1.60.
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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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