Jiaco's Picks

Here's the three plays we'll be making first thing Monday morning. They are in no particular order since after reviewing their charts for awhile now, I like them all. So here goes.

1. AIG - American International Group. We are buying the September $60 puts. (puts are the right but not the obligation to sell a stock at a certain price... in this case it's the right to sell AIG at $60 before the third Friday in September). The option symbol is .AIGUL. We are looking to get them at 1.40 or better and we're looking to sell when the stock hits 56.70 or lower.

2. QQQQ - The Nasdaq 100 Trust. I'm pretty bearish (I don't like those terms) on the market right now. Overall I feel the market is due for some tanking and the nasdaq is no different. We're buying the September $38 puts at the open of the market. The symbol is .QQQUL. When the stock falls below $38, we'll be setting a stop loss of .50 at that point and riding it out from there. We should hopefully be getting the puts at around .35 give or take a little.

3. XLE - The Energy Select Sector Index. This may be the only thing we are bullish on. (another term I just don't like). Let's just say the energy sector can still see the upside even in an overly down market. We are buying the October $48 calls at the open of the market. Should be between 1.80 and 1.90. The symbol is .XBTJV.

There you have it. These are not plays I'm speculating on but plays I'm making instead. If you play any of these and lose your life savings, it's not my fault. You've jumped the gun. We have certain rules to the way we trade (as do any good traders) and these rules need to be adhered to. If you trade these and win, I won't take credit for that either. Be patient and observe. That's all I can tell you.

Have a great Monday and feel free to contact me with any questions.

Jiaco