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Joined: 28 Dec 2005 Posts: 11980
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Posted: Sun Sep 24, 2006 10:32 am Post subject: Mon: Buys EBAY RMBS FST NEM Sells TLT SPY DIA AMZN |
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Mon: Top Buys EBAY RMBS FST NEM Top Sells TLT SPY DIA AMZN
Primary Trades:
EBAY Oct 27.5 calls or Nov 30 calls may be best. AMZN Oct 30 puts may hedge EBAY calls. A small position of RMBS Oct 22.5 calls may be worth the risk. FST Nov 35 calls closed at 0.25 (and may be bought at 0.20, on a small pullback). FST closed at 29.65. If FST rises five points in one month, the Nov 35 calls will rise to 1.00 (i.e. be equal to the Oct 30 calls). If FST rises one point next week, the Nov 35 calls may double. TLT Dec 88 puts may hedge SPY Nov 132 puts and DIA Nov 116 puts.
Secondary Trades:
NEM Jan 50 calls may be a buy.
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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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