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New Calls

None today.
 

New Puts

Regonal Bank HOLDRs - RKH - cls: 99.80 chg: -3.74 stop: 105.75


Company Description:
The Regional Bank HOLDRs (Symbol: RKH) is an Exchange Traded Fund (ETF) that represents major stocks in the regional banking industry. There are about 19 companies in the RKH.

Why We Like It:
Banks look poised for another leg lower and a good way to play that might be the RKH. The recent bounce has failed near its 10-dma and today saw the RKH close under the $100 mark. Technicals have already turned negative. We're suggesting traders buy puts now with two targets. Our first target is $91.00. Plan to exit all or most of your position there. We'll set an aggressive, secondary target at $86.00. FYI: The top three holdings in the RKH are JPM (19%), WFC (13.6%) and WB (10%).

You may want to consider bearish put plays on JPM or even the XLF in addition to or instead of the RKH.

Suggested Options:
We are suggesting the September puts.

BUY PUT SEP 100.0 RKH-UT open interest= 131 current ask $6.20
BUY PUT SEP 95.00 RKH-US open interest= 129 current ask $4.10
BUY PUT SEP 90.00 RKH-UR open interest=1548 current ask $2.65

Picked on August 18 at $ 99.80
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume = 3.1 million
 

New Strangles

None today.
 

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