PeakTrader.com Forum Index PeakTrader.com
Economics, Portfolio Optimization, and Technical Analysis
 
 FAQFAQ   SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 
Log inFast Charts

Thu: Buys EBAY RMBS Sells DIA Others to Watch: KBH

 
Post new topic   Reply to topic     PeakTrader.com Forum Index -> Top Stock Picks
View previous topic :: View next topic  
Author Message
administrator
Site Admin


Joined: 28 Dec 2005
Posts: 11965

PostPosted: Wed Sep 06, 2006 2:35 pm    Post subject: Thu: Buys EBAY RMBS Sells DIA Others to Watch: KBH Reply with quote

Thu: Top Buys EBAY RMBS Top Sells DIA Others to Watch KBH

Primary Trades:

EBAY Oct 27.5 or 30 calls are buys on pullbacks and Oct 30 puts can be used to hedge on bounces (volatility should also be opportunities to sell, because of time value decay). RMBS Nov 20 or 22.5 calls are buys and Nov 20 puts can be used to hedge. EBAY has the potential to rise into the low 30s quickly. So, Sep 30 calls at 0.15 or less may also be buys. RMBS has a best case price target of 68 on news in Sep and Oct. So, it may rise above 30 before Nov options expire.

DIA held up relatively well. However, if a steep sell-off takes place, DIA will also fall sharply. DIA Oct 112 to 114 or Nov 110 to 112 puts may be best on market bounces.

Secondary Trades:

KBH reported an earnings warning and fell below 39 in afterhours (HOV rose over 1/2 point in afterhours on better than expected earnings). If KBH falls to around 38 (the yearly low is 37.89), Oct 40 calls may be a buy.

------------------------------------------------------------------------------------

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.
Back to top
View user's profile Send private message
Display posts from previous:   
Post new topic   Reply to topic     PeakTrader.com Forum Index -> Top Stock Picks All times are GMT - 8 Hours
Page 1 of 1

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum


Powered by PeakTrader 2.0.8 © 2001, 2002