Tom, On JMED
Currently JMED levels are $55 for resistence (down from $60 ~2 weeks ago after a burst) and $50 for support (somewhat strong).
A good strategy would be the one used by Judy : Sell the Puts when the stock close in to the $50 support. The only risk is to get the stock put to you at $47 1/2 ~ not a bad deal. For the last 2 1/2 weeks the overall market conditions were not a favorable backdrop, though the stock dived shortly (on one day) below $50, it didn't went below the next step of $47 1/2 which showed strong support.
The problem here is that these days the volume is low on JMED (as in the overall stock market : record low ~300 Million shares on the DJIA, 400 / 500 something million on NASDAQ is low by usual standard). The price move on unpredictable bursts of trading activity. Wait and See till Friday morning and keep an eye open on the Bell Weather 30 years US treasury... the rate was lower yesterday (below 7 %), and the market reponded... or take advantage of this situation now... if you foresee a good lablor department report with no wage inflation and close to these average economists expectations :
Non-farm job pay-roll +165,000 (April was +2,000), Unemployment rate at 5.5% up 0.1% ...
If it comes out far worse than that... beware...
Separately, JMED will split 3-for-2 next monday June, 10th. The cash didvidend is increased 20%... Yes this is the only stock I have having both a high valuation growth rate and a quarterly cash dividend (now 8 cents / year). When I bought my position it was yielding 3.5% annual rate.
CSCC is close to its all time high, USRX just broke $95 resistence...
Regards |
