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Fri: Top Buys EBAY RMBS Top Sells SPY

Primary Trades:

EBAY Oct 27.5 or 30 calls are buys on pullbacks and Oct 30 puts can be used to hedge. EBAY's weekly chart suggests a rise into the low 30s within two weeks. RMBS Nov 22.5 calls may be best, in case RMBS rises above 30 on court decisions before Nov expiration. Nov 20 puts can also be used to hedge. SPY Nov 130 puts are buys if SPX rises into the low 1,300s, for short-term trades, possible intermediate-term trades (if intermediate-term technical indicators peaked), to hedge calls, or in case of a steep market fall before Nov expiration.

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.