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Joined: 28 Dec 2005 Posts: 11965
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Posted: Thu Aug 24, 2006 1:36 pm Post subject: Fri: Buys EBAY Sells SPY |
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Fri: Top Buys EBAY Top Sells SPY
Primary Trades:
The market has been in an extended irrational period. So, it may be best to build-up cash, until Mon when Sep options may be cheaper. EBAY Sep 27.5 calls are a buy at 0.30 or lower. Also, Oct 30 puts can be used to hedge. SPY Sep 128 puts, around 130, are a buy (Oct puts are too expensive, in part, because there are five weeks between Sep and Oct expirations).
Secondary Trades:
None
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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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