By Lawrence G. McMillan
We have taken a new (or have returned to an old) approach for earnings-related straddle buying recently, and that is the subject of the feature article. The article also summarizes other approaches to the strategy. On page 3 is this week’s recommendation – in KMX.
Since the feature article falls under the general category of “Volatility Skews,” on page 4 we have our new recommendations for put ratio spreads.
Our market opinion is on page 6. With $SPX failing to make new all-time highs and then breaking down below support, we are taking a more bearish attitude. A recommendation in that regard is included on page 7.
Also on page 7 is our “first of the month” recommendation, since April has a good track record.
A naked put write in LO is recommended on page 8.
There are several recommendations on page 9: an event-drive biotech straddle buy in BDSI, and speculative trades in Gold and Crude Oil (actually GLD and USO), as well as a conditional trade in ICE.
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