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Joined: 28 Dec 2005 Posts: 11984
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Posted: Fri Nov 03, 2006 10:29 pm Post subject: Mon: Buys VIX MRVL MXIM RMBS EBAY Sells SPY DIA |
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Mon: Top Buys VIX MRVL MXIM RMBS EBAY Top Sells SPY DIA
Primary Trades:
If the market rises Mon, VIX (symbol $VIX.X) Dec 12 calls, SPY Dec 135 puts, and DIA Dec 119 puts are buys. Also, SPY Nov 137 puts may be traded.
Secondary Trades:
MRVL is a buyout target with the potential to rise above 30. Dec 20 calls may be best. Also, Dec 20 puts can be used to partially hedge. MXIM Nov 30 calls e.g. at 0.15 are buys on pullbacks, since they can more than double on volatility. Small positions in RMBS Dec 20 calls and EBAY Dec or Jan 35 calls may be worth the risk on pullbacks.
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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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