The Option Investor Newsletter Wednesday 1-19-2000 Copyright 2000, All rights reserved. Redistribution in any form strictly prohibited. Posted online for subscribers at http://www.OptionInvestor.com Also provided as a service to The Online Investor Advantage ************************************************************ MARKET WRAP (view in courier font for table alignment) ************************************************************ 1-19-2000 High Low Volume Advance Decline DOW 11489.40 - 71.30 11574.70 11456.00 1,066,200k 1,513 1,505 Nasdaq 4151.29 + 20.48 4164.65 4084.73 1,643,706k 2,281 1,883 S&P-100 790.31 - 5.37 794.54 787.97 Totals 3,794 3,388 S&P-500 1455.90 + 0.76 1461.39 1448.68 52.8% 47.2% $RUT 520.02 + 6.56 520.02 511.89 $TRAN 2838.04 - 15.57 2861.19 2819.10 VIX 23.27 - 0.04 24.36 22.97 Put/Call Ratio .47 ************************************************************* The Other Big Three Auto makers are no longer the big three. We are right in the heart of earnings season again, but no one is looking to Ford, General Motors, and Daimler Chrylser to lead the charge. Instead we got the earnings reports of IBM, America Online, and Apple Computer after the close today. AAPL reported strong numbers with a $1.00 per share earnings vs. an estimate of $0.90. AOL finished the final quarter of last year strong too by earning $0.09 cents per share versus a First Call estimate of $0.08. IBM earned $1.12 per share, which was $0.06 cents ahead of lowered estimates, but revenues were somewhat soft. Big Blue claimed the Y2K issue hurt the 4th quarter. All three stocks traded higher during both the regular session and after-hours. The Dow Industrials also had three companies reporting earnings with Boeing, Honeywell, and United Technologies all coming in with numbers that met or beat estimates. Boeing beat the street by $0.05, UTX by $0.03, and Honeywell's earnings were in line with estimates. These positive numbers did little to help the struggling Dow though. UTX ended -2.06, HON -4.75, and BA was +2.63. Today the indices mirrored the sentiment from Tuesday as the Dow continued to slide while the Nasdaq powered ahead. The Nasdaq closed at 4151.29, up 20.48. The Dow closed at 11489.36, down 71.36 and the S&P 500 inched up to 1455.90, up 0.76. Even the Russell 2000 kept the momentum flowing by trading up to another record close at 520.02, up 6.56 today. The volume was heavy at over 1.6 billion on the Nasdaq and over 1 billion on the New York as well. The advancers beat the decliners by 11-9 on the Nasdaq, but were dead even at 15-15 on the NYSE. The internals on the Nasdaq were incredibly strong with 317 new highs against 53 new lows. Here are the charts for a closer look at today's action. Notice the weak opening for the Nasdaq before trading higher for most of the session. The Dow opened weak too, but never really maintained a comeback. It's general trend for the past two days has been lower. Look at the charts in Jim's Market Wrap from Tuesday for a better indication of what support and resistance lines we are watching. Chart of the Nasdaq Chart of the Dow The market also had to digest the Housing Starts numbers that came out this morning. Housing construction rose by a much stronger than expected 7.0%. Economic analysts were expecting to see an unchanged number. New home construction grew from 1.60 million units to 1.71 million. This is the biggest jump in over a year and was aided by unseasonably warm weather. You would expect this kind of surprise to spook the bond market, but it had little effect. In fact, the bond rallied slightly today after Tuesday's drubbing. This is probably due to bond traders looking at the current weather situation for January, with the record-breaking cold temperatures, and figuring these numbers will decline. The 30-year Treasury yield ended down at 6.72%. The tech sector saw Internet stocks showing strength today. That helped to lift the Nasdaq despite the weak software sector. Other strong sectors included Drug, Biotech, Utilities, Gaming, Chip Equipment and Fiber Optics. Software was weak on the heels of Microsoft's earnings which were announced after the close on Tuesday. MSFT, like always, beat the estimates, but showed some concern for near-term PC demand and corporate sales. Also weak were Gold, Airlines, and Automakers. So who was moving among the hot Internets? YHOO +22.81, MSTR +23.63, FMKT +69.69, VERT +19.50, AGIL +14.00, and INSP +12.69. Biogen rose sharply today after being added to Merrill Lynch's "buy-focus 1" (don't ask, we don't know what that means either). Merrill previously had BGEN rated at a Buy. They cited BGEN as having a more compelling valuation among Biotech stocks. Merrill also issued a price target of $100 a share for BGEN. The markets are in the thick of the reporting season right now and trying to digest all the numbers can sometimes cause an upset stomach. Fortunately, the volatility has remained low so far. The VIX traded in a tight range between 23 and 24 today, indicating a general calmness amongst traders. This is refreshing compared to the increasing volatility of the past couple months. It turns this into a stock-picker's game instead of a market-timer's game. On Thursday the government will release the latest trade gap numbers which are forecasted at $25.3 billion. That is one giant IOU, but not out of the realm of what we have seen in the past. This will be out before market open, but barring any major surprises, shouldn't impact the markets. Our real lingering question for the evening is relative to the Dow Industrials. It closed one point above the 10-dma. Now the last time we broke the 10-dma on a closing basis, the Dow dropped to the 50-dma. That would mean another 300 point move to the downside. The Nasdaq continues to look stronger. It closed at another record high today and the volume continues to support this market. Investors are still turning to tech stocks despite the rising 30-year bond. That factor would typically kill the tech group. This shows just how strong the fundamentals are for technology. Why would you want to own a bond paying you 6.75% when you have the potential to double your money on some of these technological advances? The downside to this market is evident to those who have watched the market cycle over the past two years or so. We are entering a period after first quarter earnings which is typically weak for stocks, last year being a prime example. It was right about this time that the markets went into a lull until mid-March. There weren't any massive declines (at least in the Dow), just a lot of deteriorating premiums. Not what we need in the options market (but then that may be a matter of strategy)! January options expire on Friday so most of you will want to start switching to February's if you haven't already. January contracts should only be played by high-risk, gun slingers at this point. One piece of advice for all options traders? Sell too soon. Ryan Nelson Asst. Editor. **********************ADVERTISEMENT******************************* Keep your friendships alive! Zing.com is the easiest and quickest way to use your pictures or ours to make your mom smile, your friends laugh or your lover blush. Brighten someone's day with a ZingCard It's fast, fun and free! Staying connected is just a click away: http://www.zing.com/z?e40c166z11 ****************************************************************** *********** STOCK NEWS *********** Is Merck Next? By S.P. Brown Going from number one to number three within a two-month span has to have the top brass at Dow Jones Industrial component Merck & Co. (MRK) seething. Long the top player among the "big drugs," Merck will soon be relegated to the third rung on the pharmaceutical ladder. On Monday, two British drugmakers, Glaxo Wellcome (GLX) and SmithKline Beecham (SBH) agreed to merge to claim the top rung, while the likely combination of Pfizer (PFE) and Warner-Lambert (WLA) will soon move up to claim the second. http://members.OptionInvestor.com/stocknews/011900_1.asp ********************** PLAY OF THE DAY - CALL ********************** MFNX - MetroMedia Fiber Network $64.81 +3.81 (+7.69 this week) Buckets-O-Bits. That's not a new dog food. It's MetroMedia's business to send big batches of data down its fiber-optic network lines as a competitive local exchange carrier (CLEC). It operates its network in Chicago, Philadelphia, New York City and Washington, D.C. and interconnects its service areas through an agreement with Williams Communications. It rents its fiber to customers, ISP's, other local and long distance carriers and wireless providers. Racal is their partner between the U.S. and the U.K. Metromedia also owns Abovenet, a recent acquisition (and competitor of Exodus Communications) in the hosting business. Bell Atlantic owns 10% of the company and contracts with MFNX to use their network. Sunday's Write Up On December 19, MFNX was named for inclusion in the NASDAQ 100. Having encountered resistance at $45 until that date, MFNX finally broke out of the range on strong volume, but took a breather in early January, retesting for new support at $44. From there, it's moved over the last 2 weeks to its current $57.13. Near-term support is now at $52 following Friday's breakout again to a new trading and closing high of $57.25. Volume of 3.8 mln shares traded handily beat the ADV of 2.8 mln shares by about 35%. Volume has been steadily rising throughout the week and over the last 3 months. Technically, MFNX is looking very strong, and they are scheduled to announce earnings in early February. Though Zack's reports the unconfirmed date of February 7, MFNX has a bad habit of keeping investors in the dark as to the release date (except that it will likely be the first week in February), then releasing numbers in the middle of the trading day. It's not followed by many analysts either, which makes estimates much less valuable. Even so we will have a more firm date in the next update, assuming we get an answer from the company. Speaking about "tough to track" information on this company, they have historically announced 2:1 splits in the $52- $78 range. Could we get another? Perhaps, but get this. The company reports only 180 mln shares authorized, yet 192 mln already issued - neat trick...we're trying to get a handle on that too. Nonetheless, the company last week reported exceeding over $2 bln in contracts for the first time (total value, not annual revenue) and continues to lease out more capacity to other carriers. To summarize, the play is technical, but partially driven by earnings. Target shoot at support - no chasing. MFNX is an illusive animal. Similar to a Tasmanian Devil, it can bite. In the news, two individuals claim they are owed 15% of the company at a cost of $1000 (yes, thousand) stemming from a 1993 agreement to find financing for the company prior to its 1997 IPO. They claim they introduced Stephen Garofalo, MFNX's CEO to an investor who took a stake in the company. Last year, said 2 individuals wrote their $1000 check to the company seeking their 15% stake. Yeah, right. Don't get panicked out by the words "law suit" folks. Their attorney couldn't explain the 4-year delay in making their demand either. Tuesday's Write Up BRRRR! We got the cold shoulder this morning from MFNX's IR department. When asked for a specific earnings date, they declined an answer and said to call back in February. Thanks for the help! While they are not likely to report in January, it could happen any darn time they feel like it in the first two weeks of February (Zack's has a tentative earnings date of February 7). Making things even tougher, they have reported during market hours for the last two quarters. All frustration aside, volume remains exceptionally strong at 45% over the ADV today, showing us strong buying interest. Part of the reason may be the emerging possibility of MFNX's transmitting up to 2000 channels within a single strand of fiber, creating ubiquitous, cheap bandwidth for all in its service areas - that's up to 8 petabits per second, or the total average traffic covering the entire globe as recently as 1997. Anyway, technically, this is nosebleed territory, with the nearest support at the 10-dma, way back there at $51.39. While we fully expect MFNX to be at a higher price by earnings (whenever it is), there will be bumps along the way. With seven consecutive days of gains, now is not the time to buy everything in sight. Wait for the dips, (hopefully a big intraday selloff followed by a strong bounce) for an entry. Also be forewarned that MFNX is really temperamental, and subject to violent moves for no apparent reason (think Tasmanian Devil) - something we expect from a company with little concern for disseminating news. Nonetheless, we like the gains and the chart is strong. While nowhere near a guaranty, over $52, they could also announce another split. BUY CALL FEB-55*QFN-BK OI=1545 at $11.88 SL= 9.25 BUY CALL FEB-60 QFN-BL OI= 339 at $ 8.50 SL= 6.50 BUY CALL FEB-65 QFN-BM OI= 0 at $ 6.00 SL= 4.25 New strike BUY CALL MAY-55 QFN-EK OI=5205 at $16.63 SL=13.00 BUY CALL MAY-60 QFN-EL OI= 227 at $13.88 SL=11.00 Picked on Jan 16th at $57.13 P/E = N/A Change since picked +7.69 52-week high=$64.94 Analysts Ratings 18-8-0-0-0 52-week low =$17.38 Last earnings 11/99 est=-0.12 actual=-0.16 Surprise=-33% Next earnings 02-07 est=-0.26 versus= 0.00 Average Daily Volume = 2.8 mln Chart = http://quote.yahoo.com/q?s=MFNX&d=3m ******************************** BIG COVERED CALLS AND NAKED PUTS ******************************** This week's list includes a number of well-known telecom issues and two split plays. Each of the "in-the-money" positions offer conservative entry points into technically bullish charts, with reasonable monthly returns. The positions that we find favorable (and will track every week) are marked with asterisks. We will also list more aggressive positions for those traders so inclined. Do not enter these positions unless you fully understand the strategy and various methods of manipulating the position should the stock price drop or rise and in the event you decide you want to keep the issue. Summary of Previous Picks: Covered Calls: Stock Strike Strike Cost Current Profit Monthly Symbol Month Price Basis Price (Loss) Return PUMA JAN 80 77.16 90.56 $2.84 7.0% HNCS JAN 60 58.81 103.13 $1.19 6.8% CLRS JAN 60 58.06 71.75 $1.94 6.4% RFMD JAN 65 63.88 84.50 $1.12 5.9% INCY JAN 60 58.22 139.88 $1.78 5.8% AFFX JAN 120 116.75 202.25 $3.25 5.3% HGSI JAN 125 121.63 193.13 $3.37 5.3% ADAP FEB 75 71.06 115.63 $3.94 4.6% NVLS** FEB 38.38 36.48 52.69 $1.91 4.3% GMH FEB 100 95.81 121.25 $4.19 3.6% Naked Puts: Stock Strike Strike Cost Current Profit Monthly Symbol Month Price Basis Price (Loss) Return ARTG JAN 75 74.06 102.13 $0.94 15.0% ASDV JAN 55 54.37 71.88 $0.63 13.4% PUMA JAN 70 69.25 90.56 $0.75 12.4% CLRS JAN 55 53.87 71.75 $1.13 11.7% INCY JAN 50 49.00 139.88 $1.00 10.5% IDC JAN 30 29.37 33.63 $0.63 9.6% AFFX JAN 105 103.44 202.25 $1.56 9.5% PUMA JAN 65 63.87 90.56 $1.13 9.4% INCY JAN 65 64.44 139.88 $0.56 8.9% HGSI JAN 115 113.62 193.13 $1.38 8.6% CRA JAN 115 113.75 216.00 $1.25 7.2% JDSU JAN 125 124.31 211.94 $0.69 6.3% ICGE JAN 110 108.87 150.38 $1.13 6.2% ADAP FEB 65 63.25 115.63 $1.75 7.1% NVLS** FEB 33 32.63 52.69 $0.71 5.8% GMH FEB 95 92.75 121.25 $2.25 5.6% ** NVLS - Adjusted for a 3 for 1 split. NOTE: Our target Return On Investment: for February is 5% for thirty days which equates to a 5% monthly return. A margin account would double the listed covered call returns. NEW PICKS January Plays ASDV - Aspect Development $71.88 *** Technicals Only *** Aspect Development creates, markets and supports enterprise client server software and content products that enable manufacturers to improve product development and business processes through component and supplier management (CSM). Aspect's CSM solution is licensed to global enterprises in many industries including electronics and high technology, aerospace and defense, automotive, industrial process and consumer package goods. The CSM solution incorporates four interrelated elements, the Explore family of enterprise client server software products, the VIP family of component and supplier content databases, Professional Services for legacy data conversion and business process consulting and a Web Catalog Publisher. Aspect's customers include more than 150 of the 200 largest manufacturing companies in the world. In short, ASDV makes Internet-based software and reference data products that help businesses improve product development and business processes through component and supplier management solutions. That's one of the hottest sectors in the market right now and the late-December rally has boosted the stock out of an old trading range to new all-time highs. We will use the technical support from the recent consolidation area to provide a favorable entry position. Action Month & Option Open Closing Cost Return On Req'd Strike Symbol Interest Price Basis Investment Sell Call FEB 60 QDV BL 160 14.88 57.00 5.3% *** Sell Put FEB 50 QDV NJ 10 1.19 48.81 7.6% *** Sell Put FEB 55 QDV NK 40 2.06 52.94 12.5% Sell Put FEB 60 QDV NL 40 3.38 56.62 16.7% Chart = http://quote.yahoo.com/q?s=ASDV&d=1y **** CNXT - Conexant Systems $80.56 *** Post Earnings Drop? *** Conexant provides semiconductor products and systems solutions for communications electronics. Conexant delivers integrated systems and semiconductor products for a range of communications applications. These products facilitate communications worldwide through wireline voice/data communications networks, cordless and cellular wireless telephony systems, personal imaging devices and equipment and emerging cable/wireless broadband communications networks. CNXT operates in five business segments that include Personal Computing, Network Access, Wireless Communications, Digital Info-tainment and Personal Imaging. Today Conexant Systems reported that it had record revenues in the latest quarter and expects a 40% increase in revenues for its fiscal 2000. The company experienced record product shipments across a broad range of its businesses, including networking and wireless communications and personal computing. The CEO said the company is well positioned to grow significantly faster than the overall semiconductor industry and expects to deliver more than $2 billion in revenues next year. A bullish outlook for sure but we expect a post-earnings sell-off and that's when we want to open this position. Today's quotes are listed but they won't be accurate tomorrow. Use good judgment and try to achieve a cost basis near the technical support at $60. Action Month & Option Open Closing Cost Return On Req'd Strike Symbol Interest Price Basis Investment Sell Call FEB 65 QXN BM 509 18.63 61.93 5.0% *** Sell Call FEB 70 QXN BN 1476 15.38 65.18 7.4% Sell Put FEB 60 QXN NL 1359 1.75 58.25 9.8% *** Sell Put FEB 65 QXN NM 263 3.00 62.00 15.3% Sell Put FEB 70 QXN NN 78 4.63 65.37 17.6% Chart = http://quote.yahoo.com/q?s=CNXT&d=1y **** CTXS - Citrix Systems $155.00 *** Split Run? *** Citrix supplies thin client/server application server products and technologies that enable enterprise-wide deployment of applications designed for Windows operating systems. Their MetaFrame and WinFrame product lines, developed under license and strategic alliance agreements with Microsoft Corporation, permit organizations to deploy Windows applications without regard to location, network connection or type of client hardware platforms. MetaFrame software is an enhancement to the Windows NT Server 4.0, Terminal Server Edition. The MetaFrame product line enables organizations to deploy, manage and access applications across the extended enterprise. WinFrame is a Windows application server software based on Windows NT 3.51 that allows customers to deploy advanced Windows applications remotely, provide Windows applications to a broad array of client platforms and publish enterprise applications on a corporate Intranet. Today Citrix posted fourth-quarter operating earnings of $37.7 million, 50% higher than the year-earlier quarter and slightly ahead of Wall Street's consensus expectations. Citrix also said they would split their stock 2-for-1 in the form of a dividend. The dividend is payable on or about February 16 to shareholders on record as of January 31. The stock has excellent support near $120, offering a number of favorable entry points, depending on your risk/reward outlook. Action Month & Option Open Closing Cost Return On Req'd Strike Symbol Interest Price Basis Investment Sell Put FEB 120 XSQ ND 118 2.31 117.69 6.9% *** Sell Put FEB 125 XSQ NU 21 3.25 121.75 9.2% Chart = http://quote.yahoo.com/q?s=CTXS&d=1y **** DITC - Ditech $118.00 *** Another Split Run *** Ditech designs, develops and markets equipment used in building and expanding telecommunications and cable communications networks. Their products are: echo cancellation equipment and equipment that enables and facilitates communications over fiber optic networks. Echo cancellation products eliminate echo, which is a significant problem in existing and emerging networks. Their optical communications products enable the implementation of wavelength division multiplexing technology, which is becoming more widely adopted by service providers to address network capacity constraints. Ditech's optical communications products are designed to function either as stand-alone products or as a complete system known as the Optical Path Solution. To date, the vast majority of its revenue has been derived from sales of its echo cancellation products. Ditech officials also recently authorized a two-for-one split of its common stock. The split will be paid as a stock dividend on February 16 to shareholders of record on February 1, 2000. Ditech shares have rocketed over 1000% since the initial public offering last summer and Robertson Stephens analyst Paul Johnson says the company is poised for further growth in 2000. He recently raised his earnings-per-share estimates for the telecom equipment maker and reiterated a "buy" rating, based on Ditech's announcement of orders for its echo-cancellation products from two major telecom companies. Action Month & Option Open Closing Cost Return On Req'd Strike Symbol Interest Price Basis Investment Sell Call FEB 90 DUI BR 30 34.75 85.25 5.6% *** Sell Put FEB 85 DUI NQ 7 3.75 81.25 13.5% *** Sell Put FEB 90 DUI NR 59 5.25 84.75 17.9% Chart = http://quote.yahoo.com/q?s=DITC&d=1y **** NEWP - Newport Corporation $63.19 *** One The Move! *** Newport, together with its consolidated subsidiaries, is a global supplier of high precision components, instruments, positioning and measurement systems to the fiber optic, computer peripherals, semiconductor equipment and scientific research markets. Newport designs, manufactures and markets components and systems that enhance productivity and capabilities of automated assembly and test and measurement for precision manufacturing and engineering applications. The company also provides sophisticated equipment to commercial, academic and governmental research institutions worldwide. NEWP operates in three business segments, Components and Subassemblies, Instruments and Systems and their European operations. We favor this position based on the networking sector performance and the underlying technicals for the issue. We will use the recent consolidation area near $50 as an entry target for this aggressive combination play. Action Month & Option Open Closing Cost Return On Req'd Strike Symbol Interest Price Basis Investment Sell Call FEB 55 QNW BK 23 11.38 52.06 5.6% *** Sell Put FEB 50 QNW NJ 0 1.31 48.69 9.4% *** Sell Put FEB 55 QNW NK 0 2.75 52.25 14.0% Chart = http://quote.yahoo.com/q?s=NEWP&d=1y **** NXTL - Nextel Communications $119.12 *** A New Range *** Nextel Communications provides digital and analog wireless communications services throughout the United States. Nextel offers a differentiated, integrated package of digital wireless communications services under the Nextel brand name, primarily to business users. Their digital network constitutes one of the largest integrated wireless communications systems utilizing a single transmission technology in the United States. Nextel has significant specialized mobile radio spectrum holdings in and around every major business and population center in the country, including all of the top 50 metropolitan statistical areas in the United States. Through its subsidiaries, the company operates or has interests in wireless communications systems in and around various major metropolitan market areas in Latin America, Asia and Canada. Another "technicals only" play as the news in NXTL's recent past is a bit complex. Regardless of the problems with Nextwave and their license agreements, Nextel has moved to the next level with a break-out above resistance near $110. Now there is no turning back! Action Month & Option Open Closing Cost Return On Req'd Strike Symbol Interest Price Basis Investment Sell Put FEB 100 FQC NT 1292 1.88 98.12 6.2% *** Chart = http://quote.yahoo.com/q?s=NXTL&d=1y **** QCOM - QualComm $146.63 *** An OIN Favorite *** QualComm is a leading provider of digital wireless communications products, technologies and services. QualComm designs, develops, manufactures and markets wireless communications, infrastructure and subscriber products and makes Application Specific Integrated Circuits, based on its Code Division Multiple Access technology. QUALCOMM also licenses and receives royalty payments on its CDMA technology from major domestic and international telecom equipment suppliers. QCOM also manufactures and distributes and services for the OmniTRACS system. The company has contracts with Globalstar to design, develop and manufacture subscriber products and ground communications systems for their satellite system. Just a quick breather for this market-leading issue and now it appears to be bracing for another upside move. We favor the recent support near $135 and will try to get in on the ground floor with this conservative combination position. Action Month & Option Open Closing Cost Return On Req'd Strike Symbol Interest Price Basis Investment Sell Call FEB 125 AAF BE 2493 27.63 119.00 5.0% *** Sell Call FEB 130 AUA BF 2578 24.75 121.88 6.7% Sell Put FEB 115 AAF NC 1431 3.88 111.12 11.7% *** Sell Put FEB 120 AAF ND 1378 5.00 115.00 13.5% Sell Put FEB 125 AAF NE 2066 6.38 118.62 14.7% Sell Put FEB 130 AUA NF 2476 8.38 121.62 16.6% Chart = http://quote.yahoo.com/q?s=QCOM&d=1y **** VRIO - Verio $68.00 *** Master ISP *** Verio provides comprehensive Internet services with an emphasis on serving the small and medium-sized business market. Services offered by the company include providing clients with telecom circuits that permit them to make connections and transmissions over the Internet, and Web hosting services that provide clients with Internet presence in the form of a Website. Other services include an expanding package of enhanced Internet tools such as electronic commerce, enabling customers to conduct transactions with their customers and vendors over the Internet, and virtual private networks, permitting clients to engage in communications with their employees, vendors, customers and suppliers, with whom secure Internet communication capabilities are important. Verio has been providing Internet services since the world wide web began and today the world's largest operator of Web sites for businesses announced it is offering a new digital subscriber line service to provide high-speed Internet access to home offices and telecommuters nationwide through an expanded agreement with Covad Communications. This kind of service demonstrates Verio's ability to satisfy the increasing demand for powerful, yet cost-effective Internet access solutions. A bullish chart break-out and favorable option premiums provide us with an excellent opportunity for entry into a conservative position. Action Month & Option Open Closing Cost Return On Req'd Strike Symbol Interest Price Basis Investment Sell Call FEB 55 RLQ BK 861 15.25 52.50 4.8% *** Sell Call FEB 60 RLQ BL 606 11.75 56.00 7.1% Sell Put FEB 45 RLQ NI 1689 0.81 44.19 5.6% Sell Put FEB 50 RLQ NJ 497 1.44 48.56 9.6% *** Sell Put FEB 55 RLQ NK 100 2.56 52.44 15.1% Sell Put FEB 60 RLQ NL 154 4.00 56.00 17.1% Chart = http://quote.yahoo.com/q?s=VRIO&d=1y ************************Advertisement************************* Tired of waiting on trades to execute? Does your broker offer Stop Losses on Options? Trade instantly with Stop Losses at Preferred Capital Markets Stop Losses based on the option price or the stock price. 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