PeakTrader.com

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Tue: Top Buys DOW KBH CMOS IMGN AU RMBS Top Sells DIA

Primary Trades:

IWM has been leading the market higher and lower recently. If SPX falls to the low 1,220s, IWM Aug calls are a buy. If SPX falls to around 1,200, IWM Jul calls (and DIA calls) are a buy. DOW becomes ex-dividend on Jun 28th and may become more volatile.

Secondary Trades:

KBH Oct 50 calls are a buy on a pullback. The CMOS Jul 2.5 calls are about 100% intrinsic value. IMGN stock is a long-term buy. AU Jul 40 calls and RMBS Aug 20 calls may be worth the risks.

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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.