The Volatility Trader
105 W. Monument Street
Baltimore, MD 21201
Monday, July 24, 2006
Email – #161
A “Sell” for Our Saks Put – and a “Buy” for Toll Bros.
We have hit our trailing stop on our Saks put (SKSTQ). Sell your SKSTQ; hold the call.
The market is back to its bipolar self. Another 100-plus-point swing up, which means we’ll probably see another 200-point down day later this week.
Oil is dropping back, which is good for now. Give it some time; it’ll be back through $80 a barrel. The Middle East’s effect on the market seems to have softened.
Continue to hold our play on AMAT. Here is a new pick for this week:
Buy the Toll Brothers August $25 call, TEPHE at $0.75 or less. Set your mental stop at $0.55.
Buy the Toll Brothers August $22.50 put, TEPTX at $0.70 or less. Set your mental stop loss at $0.50.
Good investing,
Steve
