PeakTrader.com

[administrator]

Wed: Top Buys SMH TXN DOW KBH CMOS Top Sells SPY IWM

Primary Trades:

None, unless a market overreaction, to upside or downside, takes place. However, SPY and IWM may test their recent lows or fall lower.

Secondary Trades:

SMH Jun 32.5 calls or TXN Jun 30 calls are buys for quick trades. SMH is 33.64 and may rise into Jun Max Pain at 35. TXN is 31.43 and Jun Max Pain is 32.50. DOW Sep or Jan 40 calls are buys, since DOW is fundamentally undervalued. KBH reports earnings Jun 15th and Jul 45 calls are buys. CMOS has the potential to rise quickly and Aug 5 calls may be best. SPY and IWM Jul puts may be used to hedge calls, taking advantage of volatility.

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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.