The Volatility Trader
105 W. Monument Street
Baltimore, MD 21201
Tuesday, June 27, 2006
Email – #140
Action To Take:
Buy the Cabot Microelectronics (Nasdaq: CCMP) August $30 call, UKR HF, at $1.15 to $1.25 or less. Your mental stop is $0.80.
Buy the Cabot Microelectronics August $25 put, UKR TE, at $0.60 or less. Your mental stop is $0.45.
Action To Take:
Buy the McAfee Inc. (NYSE: MFE) August $25 call, MFE HE, at $1.05 or less. Mental stop loss at $0.75.
Buy the McAfee Inc. August $22.50 put, MFE TX, at $0.65 or less. Mental stop loss at $0.45.
Tighter stop losses make more sense in this crazy market. Keep your eye on the Fed and Iran’s saber rattling, or oilcan banging.
The most likely outcome of this week’s Fed meeting is a quarter point increase. The unknown is how the oil markets will react to Iran’s threat to use oil as a weapon. We are still in a very volatile market. Stay on top of the stop losses.
Good trading,
Steve
