XLE $72.50 Energy Spyder *** PUT ***
This is a new play on the XLE and the potential for a sharp drop in oil prices. I did not put it in the watch list because I fully expect it to be triggered on Monday/Tuesday.
Breakdown Trigger: $71.35
Buy: Dec $70 Put XBT-XR
I should have added Goldman last week when I first mentioned it. With it up +$10 for the week the options have already become overpriced.
IWM - $78 - Russell 2000 iShares *** Stop Loss $76.00 ***
I believe next week will be a turning point in the market and I also believe that turn will be higher. The Russell has under performed the major averages for weeks and small caps should be the preferred choice as fund managers position their portfolios for year end.
iShares Russell 2000 Index Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the Russell 2000 Index (the Index). The Index measures the performances of the small capitalization sector of the United States equity market. The Index includes approximately 8% of the market capitalization of all publicly traded United States equity securities. The Index is a subset of the Russell 3000 Index, and serves as the underlying index for the Russell 2000 Growth and Value Index series. The Index is a capitalization-weighted index of the approximately 2000 smallest companies in the Russell 3000 Index. The Fund uses a representative sampling strategy in seeking to track the Index. iShares Russell 2000 Index Fund's investment advisor is Barclays Global Fund Advisors.
BUY Jan $80 Call IOW-AB