Broader Market is Up

The Broader Market is up, but no decent trades on the SPY and DIA because the Stop Losses are running too high for my liking. You may like to check individual stocks for Broader Market trades.

GWW as Pre Earnings Trade Candidate

GWW shaped up for a pre earnings trade by crossing the 22pma yesterday. I bought the GWW NOV 90 Call for 6.30 and set a stop loss at 5.20, with a target of 9.60

Potential Investment Trades to the Downside

With Fresh crosses below the 22dma on Friday, LBTYA, AVT and PCAR make good potential investment trades to the downside.

the LBTYA JAN 45 Put is asking 4.80 with a stop loss at 3.90 (a potential 19% loss). The target should be 8.10 (a potential 68% gain).

+++ Update - although not a convincing descent, LBTVA closed below the 22dma in the first hour, and so I placed this trade.

+++ Update - got stopped out at 3.70, so this was a bad trade!

The AVT JAN 40 Put has an ask of 3.40, and the stop loss should be set at 2.80 (a potential 18% loss). The target should be 5.0 for a 47% gain (potentially!).

The PCAR JAN 90 Put is asking 10.10 (a little expensive!) with a stop loss that should be set at 9.30 for a potential 8% loss. The potential gain is 50%, with a target of 15.10.

I will monitor these after the first hour on Monday and see if they have still closed below the 22dma. If so, I will trade.

+++ Update - both AVT and PCAR failed to close under the 22dma after the first hour, and therefor I passed on these trades.

Potential Investment Trades to the Upside

After Friday's close, I could find no attractive potential investment opportunities to the upside for Monday trading. Did anybody else find any?

Short Term Candidate - MS

MS seems to be shaping up for a potential short term trade, as long as it makes a new low after the first hour on Monday. It crossed below the 50dma on Friday, and there is no lower resistance point, so it could make a six month low of 54.90. It is currently trading at 63.

The MS NOV 65 PUT is asking 4.10, with a stop loss at 3.20 (or a potential loss of 22%). The target is 10.0 (or a potential gain of 143%).

I will watch this one on Monday and trade if it makes a new low after the first hour.

+++ update - MS failed to make a new low after the first hour, so no trade.

RIMM Pre Earnings Trade .... Not!

I liked RIMM for a pre earnings trade, since they crossed below the 22pma on the 5 day chart on Friday. However, when I looked at the IV of the RIMM OCT 100 Put it was running at 73.6% - a sure sign that a fall in stock price is already priced in to the option. Definately a pass.

I found no other attractive pre earnings trades based on Friday positions.

Broader Market is down

The broader market took a downturn yesterday with the $OEX, $INDU and $COMPQ indexes all dipping below their 22pma.

However, I have assessed the SPY and DIA for potential downside trading, and the stop losses are running too high to make it worthwhile. You may want to check individual stocks for potential broader market trades to the downside though.