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IF YOU ARE INTERESTED
IN LEARNING MORE ABOUT
TRADING OPTIONS, YOU ARE
INVITED TO ATTEND A
FREE SEMINAR ON 6-24-06 IN
LOS ANGELES, HOSTED BY MR.
JAKE BERNSTEIN, WITH GUEST
SPEAKERS, MR. IKE IOSSIF,
MR. PETE KILLMAN, AND MRS.
ADRIENNE TOGHRAIE. MR.
IOSSIF WILL BE
DISCUSSING SEVERAL OF
HIS TECHNIQUES FOR
EVALUATING, SELECTING, AND
TRADING OPTIONS. FOR MORE
INFORMATION AND TO REGISTER
PLEASE VISIT THIS LINK:
http://www.trade-futures.com/LAX_SMNR2.htm
Issue No. 9
May 29, 2006
Suggested Trades for Tuesday, May 30, 2006
Options Strategist and Editor: Ike Iossif, President & CIO, Aegean Capital Group, Inc.
Market Commentary
(From the "Weekly Report" by Aegean Capital Group, Inc.)
SUMMARY:
(5-29-06)
On Wednesday of
last week (see
daily report)
we pointed out that the major indices had formed the type price
pattern which 3 out of 4 times results into a
sharp rally within 1-2 trading days. Between Thursday and Friday
the SP rallied 35 points (2.8%) from its lows, the Dow
rallied 250 points (2.3%) from its lows, and NASDAQ rallied
75 points (3.5%) from its lows. The obvious question in
everybody's mind is whether last Thursday the indices
put in an intermediate term low, and they are on their way to
new highs. Everything is possible, however, in this business we
base our decisions not upon what is possible, but upon what is
most probable. "V" bottoms are quite rare, 80% of the time the
markets -even if they do not violate the lows for the
move- go thru a "bottoming process" which involves
"backing and filling" and also time. For example,
take a look below at the chart of the
OEX , with the OEX/VXO ratio (relative volatility) and notice
the red circled areas, we are confident you can see the
point. So, although the advance may continue for
another two-three trading days, and it may carry up to
resistance (see table below) the odds favor a reversal
between current levels and resistance, and a re-test of last
week's lows. Therefore, going into next week we will be looking
for signs of exhaustion and for a negative price reversal in the
zone between Friday's closing levels and
resistance, combined with a downside reversal by the
McClellan Oscillators in the +20/+30 zone. If somehow the
indices manage to beat the odds and they do not reverse at
resistance but they accelerate to the upside, then in all
likelihood we are dealing with a "V" type bottom, in
that case, we will revise our expectations upwards because the
major indices will be re-testing their most recent highs within
the next 7-10 trading days.
Since we are expecting volatility
for the major indices going forward to remain above average -in
both directions- we are focusing on stocks that over the next 2-3
weeks not only they also have the ability to move in either
direction, but also, they can be reasonably expected to experience
extreme volatility, due both to their high beta, and to their own
special situation.
PLEASE
NOTE: WE HAVE POSTED THE
COMPLETE PERFORMANCE RECORDS FOR
2005. CLICK ON
PERFORMANCE
TO
REVIEW THEM.
Trade #1
Company: Blue Coat Systems. Symbol: BCSI
Suggested Trade: Long: June15 calls/June17.5 calls
Short: Common Stock
Special Conditions/Other: NO
Comments:
BCSI has been acting quite bearish by gapping down on a fairly frequent basis, and at the same time, the chart has the appearance of a double top. If the double top was to come to conclusion, the downside targets can be anywhere from 10, all the way down to 5. On the other hand, if somehow it manages to snatch victory from the jaws of defeat, and it reverses to the upside, it can be expected to rally -at least- up to 20, and perhaps to as high as 25. The stock closed on Friday at 15.41, thus, there is the potential of a 30%-60% move. Trading Strategy:
A) We will buy to open 20 of the June17.5 calls (symbol: IYUFW) B) We will buy to open 10 of the June15 calls (symbol: IYUFC) C) We will sell short 1000 shares of BCSI at the limit price of 15.
P/L Analysis Powered By
OptionVue:
*SEE TRADE UPDATE AT THE BOTTOM
OF THE PAGE
Please note: The recommended minimum starting capital is $50,000.00.
Trade #2
Company: Synaptics. Symbol: SYNA
Suggested Trade: Long: June25 calls/June25 puts
Special Conditions/Other: NO
Comments:
SYNA is coiling within a triangle (see the two red lines) a bullish break-out will set upside targets at 27.5, at 32.5, and at 37.5. On the other hand, a bearish break-down will set downside targets at 21, and at 15. The stock closed on Friday at 24.62, thus, there is the potential of a 12% to 40% move. Trading Strategy:
We will buy to open 10 of the June25 calls (symbol: OYGFE) and we will buy to open 8 of the June25 puts (symbol: OYGRE)
P/L Analysis Powered By
OptionVue:
*SEE TRADE UPDATE AT THE BOTTOM
OF THE PAGE
Please note: The recommended minimum starting capital is $50,000.00.
Trade #3
Company: Thor Industries. Symbol: THO
Suggested Trade: Long: June50 calls/June50 puts
Special Conditions/Other: NO
Comments:
THO is near the bottom of its long-term rising channel. It can test support at 42-40, or it can test resistance at 58-60, in either case, the magnitude of the move will be nearly 20%, and if the stock breaks either support, or, resistance, the magnitude of the move can be as much as 30%-40%.
Trading Strategy:
We will buy to open 6 of the June50 calls (symbol: THOFJ) and we will buy to open 5 of the June50 puts (symbol: THORJ)
P/L Analysis Powered By
OptionVue:
*SEE TRADE UPDATE AT THE BOTTOM
OF THE PAGE
Please note: The recommended minimum starting capital is $50,000.00.
Trade #4
Company: Palm Inc. Symbol: PALM
Suggested Trade: Long: Common stock/June17.5 puts
Special Conditions/Other: NO
Comments:
PALM is at channel support, if it breaks down it will set-off downside targets at 12.5, at 10, at 7.5, and at 5. If support holds, and it turns around, it can rally up to 23.5, 27.5, and even up to 35. The stock closed on Friday at 17.62, thus, there is the potential of a 25% to 65% move.
Trading Strategy:
We will buy to open 20 of the June17.50 puts (symbol: UPYRW) and we will buy 1000 shares of PALM at the limit price of 17.
P/L Analysis Powered By
OptionVue:
*SEE TRADE UPDATE AT THE BOTTOM
OF THE PAGE
Please note: The recommended minimum starting capital is $50,000.00.
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IF YOU WISH TO RECEIVE REAL TIME ENTRY/EXIT ALERTS FOR THE TRADES SUGGESTED IN TODAY'S REPORT, PLUS ADDITIONAL MARKET COMMENTARY, ENTER YOUR NAME AND EMAIL AND THEN CLICK ON THE BUTTON BELOW TO ADD YOUR EMAIL ADDRESS TO THE DATA BASE.
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Good trading to all.
Ike Iossif, President C.I.O Aegean Capital Group, Inc.
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5-30-06:
All trades were executed at the opening in our own accounts, and in our managed accounts, see actual account picture below:
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PORTFOLIO HOLDINGS (as of 5-30-06) |
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PORTFOLIO'S RISK
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