[Opening Position in On Semiconductor (ONNN)]
Dear Member:
On Semiconductor (ONNN)looks like it may be completing a consolidation and forming a reverse head and shoulders. MACD and DMI are both positive and I like what I see in general. The one drawback that is apparent right now is that earnings are scheduled to be announced late next week and earnings are often followed by a dip. Nevertheless, I am placing an order to buy the Jan '09 $10 calls (OPAAB) at a limit of $2.55 for the day. I am looking at the at the money calls only because they have fairly high open interest. The delta is about .67 which is ok for an at the money strike.
DISCLOSURE: At the time of publication, I have no position in the referenced calls or the underlying stock.
Sincerely,
Bill Kraft
|
