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Joined: 28 Dec 2005 Posts: 11966
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Posted: Mon Aug 21, 2006 4:54 pm Post subject: Tue: Buys EBAY KBH Sells SPY DIA |
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Tue: Top Buys EBAY KBH Top Sells SPY DIA
Primary Trades:
EBAY Sep 27.5 or 30 calls are buys on pullbacks. Also, EBAY Oct 30 puts can be used to hedge. SPY Sep 128 puts and DIA Sep 112 puts are buys above SPX 1,300.
Secondary Trades:
TOL reports earnings tomorrow (the conference call is at 2 PM ET after earnings). So, if KBH pulls-back, Sep 45 calls (which reached a low of 1 today) may be worth the risk.
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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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