10 Touchdown Options Trades
OptionsZone Experts, September 23, 2009
Free Trading Guides
-
#5 Semiconductor HOLDRs (SMH)
By Chris Johnson and Jon Lewis
What goes better with football on a widescreen than your favorite beverage and a big bowl of chips? Since we couldn't find any potato stocks to recommend, we'll have to go with the semiconductor kind of chip, which is ably represented by the Semiconductor HOLDRs (SMH).
The semis have been hot of late, as SMH is up about 25% from its July bottom. The sector is at the forefront of the economic recovery, as companies begin to open their wallets to tech spending once again. SMH has been a market leader, having outperformed the Nasdaq (NASD) for the past five months. And with the fundamentals behind it, this leadership should continue.
This is a great time to hop aboard SMH as it just pulled back to its 20-day moving average. I guess you could say that it's time to buy the dip in chips. Go with the SMH Jan 25 Calls (SMHAE). Bon appétit!
More By This Expert
Chris Johnson and Jon Lewis
Whet Your Appetite for Kroger Puts
Grocer Kroger (KR) looks vulnerable as it heads into earnings. Find out why.
Big Lots About to Make a Big Move
If history is any guide, Big Lots (BIG) should make a substantial move next week. Find out which direction we think it's headed.
Express Scripts Has the Right Medicine
Pharmacy management services provider Express Scripts (ESRX) should beat earnings estimates and continue its move higher.
We think the Street has it all backward when it comes to these four stocks. Find out how to position yourself on the right side of these trades.
A Stock That Wishes Tiger Hadn't Been Let Out of the Bag?
One of videogame maker Electronic Arts' (ERTS) greatest strengths has turned into a major problem for the company -- its sponsorship of Tiger Woods. And that's not all that's wrong with the stock.
