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Joined: 28 Dec 2005 Posts: 12643
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Posted: Thu Jul 13, 2006 4:37 pm Post subject: Fri: Buys QQQQ EBAY MXIM DELL KBH Sells SPY |
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Fri: Top Buys QQQQ EBAY MXIM DELL KBH Top Sells SPY
Primary Trades:
Aug calls on QQQQ EBAY MXIM DELL and KBH are buys on pullbacks, e.g. QQQQ Aug 35 calls, EBAY Aug 27.5 or 30 calls, MXIM Aug 30 calls, DELL Aug 22.5 calls, and KBH Aug 45 calls (KBH is down in afterhours after DHI gave an earnings warning). SPY Sep 125 puts can be used to hedge.
Secondary Trades:
Jul calls on EBAY MXIM and DELL have huge potential leverage, i.e. EBAY Jul 27.5 calls, MXIM Jul 30 calls, and DELL Jul 22.5 calls.
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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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