administrator Site Admin
Joined: 28 Dec 2005 Posts: 11966
|
Posted: Thu Oct 19, 2006 5:37 pm Post subject: Fri Watch List: MMM CAT MRK SNDK GOOG AMZN OEX SPY DIA YHOO |
|
|
Fri Watch List: MMM CAT MRK SNDK GOOG AMZN OEX SPY DIA YHOO
Primary Trades:
SPX may trade between 1,360 (or 10-day MA) and 1,370 (right shoulder of head & shoulders). A compression from the rising 10-day MA may cause a fall to 1,350 tomorrow or early next week. Consequently, SPY Nov 134 puts and DIA Nov 117 puts may be best on market bounces. AMZN Nov 30 puts remain buys before earnings Tue. YHOO Nov 25 calls may hedge AMZN puts.
Secondary Trades:
If SPX falls to the 10-day MA, OEX Oct 630 calls may be a buy. SNDK may open very low and GOOG may open very high. Consequently, Oct in-the-money or near-the-money options may be bought for short-term counter-trend moves. MMM CAT and MRK report earnings before the open and there may be similar counter-trend moves.
------------------------------------------------------------------------------------
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. |
|