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Joined: 28 Dec 2005 Posts: 11965
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Posted: Tue Oct 03, 2006 2:48 pm Post subject: Wed: Buys EBAY RMBS NEM Sells SPY DIA AMZN RIMM |
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Wed: Top Buys EBAY RMBS NEM Top Sells SPY DIA AMZN RIMM
Primary Trades:
EBAY Nov 30 calls are buys on a pullback, e.g. 27 1/2. SPY and DIA Nov puts are buys near SPX 1,338 (Oct puts are buys near 1,345). AMZN Oct or Nov 30 puts may hedge EBAY calls.
Secondary Trades:
RMBS Oct or Nov 20 calls and RIMM Oct 85 or 90 puts may be used for quick trades. NEM Dec 45 calls closed at 1.40 (NEM fell over 5% Tue below 41).
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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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