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Joined: 28 Dec 2005 Posts: 11980
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Posted: Sun Oct 01, 2006 10:44 am Post subject: Mon: Buys VIX EBAY KBH RMBS Sells SPY DIA AMZN RIMM |
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Mon: Top Buys VIX EBAY KBH RMBS Top Sells SPY DIA AMZN RIMM
Primary Trades:
VIX Oct 12 calls are a buy on a small pullback. EBAY Nov 30 or 32.5 calls are buys with Nov 30 puts to partially hedge. SPY Nov 132 puts and DIA Nov 116 puts remain buys on market bounces (also, SPY Oct 132 or 133 puts and DIA Oct 116 or 117 puts may be bought for a potential steep pullback sometime next week). AMZN Oct 30 puts may hedge EBAY calls.
Secondary Trades:
RMBS Oct 22.5 calls have huge upside potential. KBH has been in a trading range and Nov 45 calls may be bought slightly above 42. RIMM Oct 90 puts at 0.25 may be worth the risk.
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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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