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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: isopatch who wrote (33515)	4/4/2002 11:42:57 PM
From: John Pitera	Read Replies (3) \| Respond to of 52237

Iso, the OSX looks like it could slip back to it's 50 dma, or even a bit more. I'm thinking that the energy stocks are now not confirming Crude's advance. we saw a nice outside reversal day in May Crude yesterday. When you look at the strip of crude contracts going out through dec of this year, the spread on each month is pretty tight to each other and Dec's is 25.05 so only 1.40 spread between May and Dec. I'm thinking that Crude may establish a level near here and the possibly trade within a 3 dollar range north and south of the median level. Maybe that level may be 25-26. we'll see. I was talking with Phil Flynn of Aleron trading in chicago on Tuesday night and suggested that it might be interesting to go long June, short July crude and then write an at the money covered call on the June long crude and an at the money put on the July short and play for a trading range where volatilities come back in. He thought it was interesting. It might be even better to have July and August for the contracts. Obviously we would not be contemplating that strategy if Crude was going to blow out to 35 bucks in the next 6 weeks. John