« U.S. Equities: Monday, January 10, 2005 17:50:20 | Main | GICS 25: Cons Cyclicals Tuesday, January 11, 2005 08:56:03 »
January 11, 2005
U.S. Equities: Tuesday, January 11, 2005 08:30:20
The Taser story (NDQ: TASR) continues to evolve. Management now says their 1H05 orders might be slower than anticipated as law enforcement agencies are evaluating the new products. The stock is off further to $18.25 in pre-open trading. Once again, the put options are going to present an excellent tool for accumulating the stock, if you write them, but you have to want to own the stock. The point is that nobody knows where the precise cycle bottom is in any stock, and you have to watch the very short-term technical indicators (%K STO on the 15-min price data in a stock as heavily traded as TASR). Last evening I recommended the Feb 17.50 puts, but based on pre-open markets, it appears the Feb 15 put might be a better option to write. But, this is a pure day-trading situation, and not the S&P Global 1200 quality mid-cap/large-cap situations I recommend investing in. This is for the nimble trader only -- and good traders know it's usually not wise buying into falling markets.
Posted by Posted by Bill Cara on January 11, 2005 08:30:13 AM | Category: U.S. Equities