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Fri: Top Buys EBAY KBH RMBS GOOG Top Sells DIA MS

Primary Trades:

EBAY may trade around 25 and rise to the high 20s next week. So, Aug 27.5 calls, currently 0.35 or 0.40, may be best for quick trades. KBH Aug 40 calls are a buy. DIA Sep 110 puts and MS Aug 60 puts may be best to hedge calls.

Secondary Trades:

RMBS Aug 15 calls have big upside potential. GOOG may trade around a Max Pain point, e.g. 390 or 400, and gains can be made on Jul calls and puts, although it's risky, since implied volatilities may fall throughout the day. GOOG may close the week at 390 or 400.

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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.