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Tue: Top Buys EBAY YHOO RMBS Top Sells SPY DIA AMZN

Primary Trades:

If the market opens high, SPY Oct 137 puts or DIA Oct 120 puts are buys, given the market is at an extremely overbought level. AMZN Nov 30 puts are buys on bounces before earnings a week from tomorrow. EBAY Nov 32.5 calls are buys on pullbacks. If EBAY rises, Nov 30 puts can partially hedge calls. EBAY earnings is after the close Wed.

Secondary Trades:

YHOO reports earnings after the close tomorrow. If the market opens low, YHOO Nov 25 calls are buys. If YHOO rises into the close, Nov 25 puts can partially hedge calls, in case of a big earnings move. RMBS Nov 22.5 or 25 calls are buys on pullbacks.

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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.