On the whole, the week ended pretty much where it began, forming a nice consolidation pattern on the major indices.
Gold gained 8%, copper 10% and oil actually dropped 5% but you wouldn’t know it from Friday’s oil sector rally.
It was a tough week for everything and we have 3 weeks left in May options so some of these stocks bear revisiting but only if the markets in general are breaking up and not breaking down!
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HPQ (5/16) got caught up in the Microsoft downdraft (Intel’s forecast didn’t help either) and the $35s dropped to .45 (down 35%). At this point I will need to see them break back over the 50 dma at $33.25 before going for the Jun $35s, currently .65.
UNH $50s looked like they were heading for catastrophe but Friday was a huge day and they ended the week at $1.20 (down 15%).
We may have been a week early with KO but I’ll repick the $42.50s for .25 (down 30%). Its only .75 away from being in the money!
Still waiting for COST to break $54 and the $55 puts are just $1.45.
Still waiting for MS to break back over $65 for the $65s at .95 to get back in after barely getting our money back at $1.40 last week.
BAY went crazy all week and the Sep $40s should be sold at this point for $6.80 (up 170%).
After a round of 200-400% gains, a fire sale was held on BEAV, ATI, TIE and AIR. I’m not ready to get back in but I will be watching BA closely as they will have to recover first.
VOLVY continues to look very strong with the Oct $50s at $3.40 (up 66%).
VZ is going to have trouble with the 50 dma at $33.50 but the May $32.50s should already be gone at $1 (up 90%).
S is recovering nicely with the Jun $25s at .75 (up 50%).
GE is on the march and the $35s are still good at .25 (up .10), the Jun $32.50s are already at $2.40 (up 30%) and I’m ready to move to the Jan ’08 $35s for $3.70.
PFE is slow going but the $25s are up to .50 (up 60%).
Still waiting for EXPE to breakout with the $20s at .30 (down 33%).
Buying gold on Thurday’s pullback was the move of the week but even if you missed there is still ABX (5/3) $30s for $1.25 but I prefer the Jun $32.50s for .65.
The Valero rule cancelled almost all of our oil trades last week, thank goodness as the direction whipsawed back and forth. I should have just stuck to my instincts and bought XOM on the pullback after earnings but the whole sector was collapsing that day but it did turn out to be the bottom of the week.
