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Joined: 28 Dec 2005 Posts: 12643
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Posted: Tue Aug 01, 2006 4:08 pm Post subject: Wed: Buys EBAY Sells SPY DIA |
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Wed: Top Buys EBAY Top Sells SPY DIA
Primary Trades:
SPX 1,275 to 1,280 is short-term resistance. Consequently, SPY and DIA Sep puts are buys on market bounces. EBAY Sep 27.5 calls may be bought at 0.25. EBAY has the potential to bounce several points quickly.
Secondary Trades:
Aug options expire in 2 1/2 weeks. EBAY Aug 25 calls at 0.35 or less, or Aug 27.5 calls at 0.05 may be worth the risk for a potential big upside move. SPY and DIA Aug puts have more leverage.
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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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