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Joined: 28 Dec 2005 Posts: 12643
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Posted: Sun Jun 25, 2006 7:18 am Post subject: Mon: Buys DOW HUN KBH DHI AMD Sells DIA SPY |
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Mon: Top Buys DOW HUN KBH DHI AMD Top Sells DIA SPY
Primary Trades:
DIA and SPY Aug or Sep in-the money puts may be bought on market bounces to hedge calls and for a potential SPY fall below 120 sometime in Aug to Oct. DOW Jul Aug or Sep 40 calls are a buy for a short-term trade.
Secondary Trades:
HUN Jul 15 or Aug 17.5 calls are buys on a small pullback. KBH and DHI may remain volatile. KBH Jul 45 calls and DHI Jul 22.5 calls are buys on small pullbacks. AMD Jul 25 calls are a buy slightly below 25.
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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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