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Joined: 28 Dec 2005 Posts: 11966
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Posted: Tue Sep 12, 2006 7:08 pm Post subject: Wed: Buys OIH EBAY RMBS Sells SPY DIA Others to Watch OEX |
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Wed: Top Buys OIH EBAY RMBS Top Sells SPY DIA Others OEX
Primary Trades:
EBAY Oct 27.5 or 30 calls are buys on pullbacks. RMBS Nov 22.5 or 25 calls are also buys on pullbacks. The intermediate-term uptrend may be completed soon. So, SPY Nov 130 puts and DIA Nov 114 puts are buys on market bounces.
Secondary Trades:
OIH Sep 130 or 125 calls may be traded for big gains, since OIH is short-term oversold. OEX Sep calls and puts may be used to hedge (i.e. Sep 605 and 610 calls and puts).
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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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