PeakTrader.com

[administrator]

Fri: Top Buys KBH DOW CMOS STJ Top Sells SPY IWM

Primary Trades:

The market downtrend seems incomplete. So, SPY and IWM Jul puts may be buys on market bounces. Also, there may be trading opportunities between SPX 1,230 and 1,270 over the next few weeks. Moreover, SPY and IWM Jul puts may hedge calls.

Secondary Trades:

KBH may rise into earnings next Thu and Jul 45 calls may be best. DOW is fundamentally undervalued and Sep 40 calls are buys on pullbacks. CMOS Aug 5 calls are buys for a potential 3/4 point or higher bounce. STJ has held up well after a steep decline and Jul 35 calls may be best.

------------------------------------------------------------------------------------

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.