The Option Investor Newsletter Wednesday 2-9-2000 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) ****************************************************************** 2-09-2000 High Low Volume Advance Decline DOW 10699.20 - 258.40 10948.80 10698.80 1,052,049k 1,023 1,972 Nasdaq 4363.24 - 64.26 4460.76 4362.74 1,775,593k 1,811 2,341 S&P-100 765.47 - 16.74 785.02 765.47 Totals 2,834 4,313 S&P-500 1411.71 - 30.04 1444.55 1411.65 39.7% 60.3% $RUT 536.00 - 1.49 541.43 534.90 $TRAN 2550.32 - 32.48 2605.87 2550.32 VIX 24.65 + 2.55 24.77 22.60 Put/Call Ratio .54 ****************************************************************** Hack Attacks And Bond Yields Spook The Markets How about that final hour today? Just when you thought the Dow Industrials were going to hold above 10,800, a rash of sellers showed up to crash the markets. The Dow dropped faster than an online web site under a "Hack Attack". Today's close is less than encouraging too as it is underneath the closing lows of late January. This close at 10699, down 258, is also a major breakdown in the descending pattern outlined in Jim's Market Wrap from yesterday. Could it be that there are no investors interested in bidding up stocks that are breaking to new 52-week lows on a daily basis? What a shocker! How the tables have turned from days when the NASDAQ was the unwanted index. Speaking of the shining NASDAQ star, it lost some luster today, but not much compared to the nearly 700 point gain in just over a week. The tech-heavy index closed down 64.71 to 4362.79 and right at the low for the session. This index is far from any major technical damage though, unlike the Dow. The NASDAQ composite should find support at 4300 and even stronger support at 4200. If we are in for a period of consolidation after the big run-up, these will be key support levels. Blame it on the bond. The 30-year treasury was the main reason for the big rally last week and the late sell-off today. You may recall the move to the upside in the 30-year last week came after comments that the government would be limiting supply. Well today Treasury Secretary Larry Summers said the reduction in supply would be broad across all issuance, such as the 5 and 10 year notes, and will not be disproportionately bestowed upon the 30-year bond. Enough said. The 30-year plummeted late in the day in response, to close with a yield of 6.30%. A weak showing in today's 10-year note auction already had the bonds on the ropes. Tomorrow may not be much better with $10 billion in 30-years (typically the weakest of all) coming to market. The Dow may not have what it takes to rule the markets anymore, but the bonds still have a major impact. Look for rising rates to keep a lid on market optimism. Decreasing optimism is what we saw today with the VIX dropping from a very bullish stance just over 22 on Tuesday to a close of 24.44, near the day high. Decliners trounced the gainers today on the NYSE and NASDAQ. The NYSE saw 19 stocks head lower versus every 10 that went up. The NASDAQ lost by a 23-18 margin. NASDAQ volume was steady at over 1.7 billion while the NYSE turned in just over a billion. The S&P 500 lost 30.04 to close at 1411.71, holding above 1400 support. The Russell 2000 gave back only a small amount, giving back 1.49 to 536.00. "We will stun the company with our strike and we will stop the company with our strike," Charles Bofferding, Boeing's union executive director commented on Tuesday. In one of today's headlining individual stock stories, thousands of Boeing engineers and technicians decided to "take off" and initiate a strike against Boeing. The strike comes after failed attempts at negotiations between a federal mediator and the Society of Professional Engineering Employees in Aerospace. Union members seek to obtain a contract which guarantees pay raises and bonuses. Peter Conte, a spokesman for Boeing stated that Boeing would continue operations and would do so "to the highest degree possible." There are no further talks scheduled at this time. News of the strike sent shares of Boeing flying lower to close at $38.81, down $2. This morning, Broadvision (BVSN) announced that its Board of Directors had approved a 3:1 stock split, which will be payable to shareholders of record as of February 21st. It is expected that the shares will be distributed around the 13th of March. Shares of BVSN gapped up to open at $165 this morning and traded as high as $177.50. Alright, try and feign surprise and stifle the yawns. It was announced this morning that the European Commission has started an investigation with a focus on Microsoft's Windows 2000 operating system. It is believed that the new system may be in violation of European antitrust laws. The European Commission claims that Microsoft has "bundled" its personal computer operating systems in a way that is only fully interoperable with it's own server software. To make a long story short (too late), EU Competition Commissioner Mario Monti, commented that "Microsoft's competitors, which do not have access to the interfaces, would therefore... be put at a significant competitive disadvantage," John Frank, Microsoft's European director of law and corporate affairs, responded to the allegations by stating "We are confident the Windows 2000 desktop is fully interoperable with other server operating systems." This has an all too familiar air about it, does it not? Hopefully Steve Ballmer knew just what he was getting himself into. Oh well, I bet the pay is good! Plenty of news for the Biotech's today. This morning, Imclone (IMCL) and SmithKline Beecham (SBH) announced a licensing agreement regarding a meningitis vaccine. Details were scarce though the headline alone was enough to send IMCL to a close at $72.50, up $4.25. The Biotech sector has been hot lately. Sector winners today included Gold and Transportation. Other movers in the Biotechs included Incyte Pharmaceuticals and Corixa (CRXA). The two companies announced an agreement to work together to further diagnostics, therapeutic monoclonal antibody, and vaccine development. An article in the Wall Street Journal reported that Merck (MRK) will have five of its biggest patents expire within the next two years. Apparently, this news concerned investors and worked to bring MRK down over four points for the day. The Drug group is continuing to be weak. Other sector losers included Semis, Health-care, Internet, Retail and Telecom. Boston Biomedica (BBII) announced today that the Food and Drug Administration has approved its Accuron 106 HIV Antigen Positive Control to be used in the detection of the HIV virus which causes AIDS. Shares of BBII, which had closed Tuesday's session at $5.50 a share, traded as high as $16.97 on Wednesday. All in all, we would expect a weakening bond to weigh on the NASDAQ and Dow in the morning tomorrow. How far it will dip will be up to the general sense of fear in the market. The reasons for fear are part old and part new. The old story of interest rates are back in the forefront. We will get Retail Sales on Friday, but that is the only biggie left this week. The new story is cyber attacks on popular web sites. It is making investors wonder how this new element might hurt their investments. Just keep in mind that this is a traffic jam, not a 12-car pile-up during rush hour. We are likely to see more of this in the future, but new measures will be taken to combat these hackers. If you haven't noticed, security stocks have been going haywire lately on a possible increase in demand for their products. Today, VRSN +5.38, CHKP +7.94, ISSX +7.88 and ENTU +6.81 all gained. Possibly sit out during the dip, but it's hard to say the market is due for a lasting breather. That sentiment has kept you out of a lot of entry points. Not that the market can't go down, just that we've seen no real evidence that it wants too. Trade smart and by the rules. Ryan Nelson Asst. Editor *********** STOCK NEWS *********** Not All Technology Involves Silicon By S.P. Brown The NASDAQ Composite Index (COMPX) has been hogging the headlines of late, and with good reason. Over the past six weeks, the index has added another 8 percent to its market value, with most of the gains coming over the last 10 trading sessions. What's more, over the first two trading sessions of this week, the index has set two new records. http://members.OptionInvestor.com/stocknews/020900_1.asp ********************* PLAY OF THE DAY - PUT ********************* PVN - Providian Financial Corp. $68.25 -4.31 (-10.06 this week) Providian is a provider of lending and deposit products to customers nationwide and also offers credit cards in the United Kingdom. Providian serves a broad market with loan products including credit cards, home equity loans, secured cards and membership services. With a commitment to 100% customer satisfaction, Providian's mission is to help its customers build or rebuild, protect and responsibly use credit by providing a quality borrowing experience that leads to active and lasting customer relationships (code for "C" grade consumer credit). Providian has $23 billion in assets under management and over 12 million customers. Tuesday's Write Up Sometimes kids need to learn the same lesson twice. Such is the case for PVN. Spurred by attorneys' general in California and Connecticut, there are rumblings that the Federal government may be coming after the subprime consumer credit giant. That wouldn't be the first time PVN has had suits leveled at them. There were already four lawsuits filed in San Francisco that accuse Providian of charging consumers for credit products and services they didn't want, transferring balances from other credit cards without customer approval and imposing excessive late fees, according to a Forbes article published as far back as July, 1999. Anyway, the rumor had an effect on the technical outlook for the stock, dropping it below historical support of $75-$77 on increased volume over the last two days. It now trades under its 10, 50, and 200-dma. That's a bad sign given that interest rates (bond rates, not discount rates) should be benefiting financials. Not so for PVN. Its next level of support is way down at $60. It doesn't mean it will get there though. The rumors could be dispelled quickly and PVN is still a nicely profitable company with a growing earnings stream (just the stuff to cause an upgrade). A tick up to $75-$77, then a bounce back south would provide the best confirmation for entry - all the better if the market is headed south too from interest rate worries (watch tomorrow's 10-yr bond auction). ***February contracts expire in less than two weeks*** BUY PUT FEB-75 PVN-NO OI=698 at $ 7.88 SL=5.75 BUY PUT MAR-75 PVN-OO OI=443 at $10.00 SL=7.50 BUY PUT MAR-70*PVN-ON OI=852 at $ 6.75 SL=5.00 Average Daily Volume = 1.14 mln /charts/charts.asp?symbol=PVN ************************************* BIG COVERED CALLS & NAKED PUT SECTION ************************************* The DOW drags the NASDAQ down while Internet vandals persist with their horrid "swarm" attacks. Although a number of well-known stocks are in the dumps today, OIN's in-the-money covered call strategy offers a high probability of achieving a 5% monthly return. The summary below shows that all of our previous picks are positioned for a maximum return. Our short-term approach focuses on a consistent monthly return, regardless of market conditions. During a time of extreme volatility and astronomical valuations, we are not interested in stock ownership, just consistent growth in the value of our brokerage account. Summary of Previous Picks: Covered Calls: Stock Strike Strike Cost Current Profit Monthly Symbol Month Price Basis Price (Loss) Return MRVC FEB 60 58.00 75.06 $2.00 6.6% RNWK FEB 150 143.44 173.88 $6.56 6.0% RIMM FEB 60 57.38 112.00 $2.62 6.0% NEWP FEB 55 52.06 114.63 $2.94 5.7% DITC FEB 90 85.25 167.00 $4.75 5.6% JNPR FEB 125 120.12 185.94 $4.88 5.4% NSM FEB 50 48.63 61.94 $1.37 5.4% ASDV FEB 60 57.00 118.63 $3.00 5.3% NEWP FEB 65 63.25 114.63 $1.75 5.3% QCOM FEB 125 119.00 133.31 $6.00 5.1% CNXT FEB 65 61.93 104.94 $3.07 5.0% HLIT FEB 95 91.56 126.63 $3.44 5.0% VRIO FEB 55 52.50 65.13 $2.50 4.8% CTXS FEB 125 122.00 175.22 $3.00 4.7% MERQ FEB 110 106.31 138.44 $3.69 4.6% ADAP FEB 75 71.06 121.88 $3.94 4.6% CNXT FEB 75 73.50 104.94 $1.50 3.9% GMH FEB 100 95.81 108.00 $4.19 3.6% NVLS FEB 38 36.48 53.25 $1.53 3.4% Split 3 for 1 Naked Puts: Stock Strike Strike Cost Current Profit Monthly Symbol Month Price Basis Price (Loss) Return DITC FEB 85 81.25 167.00 $3.75 13.7% NEWP FEB 60 58.81 114.63 $1.19 13.6% IMNX FEB 115 112.50 164.00 $2.50 13.5% MRVC FEB 55 53.94 75.06 $1.06 12.6% NSM FEB 50 48.88 61.94 $1.13 11.9% QCOM FEB 115 111.12 133.31 $3.88 11.8% RNWK FEB 130 128.00 173.88 $2.00 10.8% CTXS FEB 120 117.94 175.22 $2.06 10.8% JNPR FEB 113 110.62 185.94 $2.38 10.1% CNXT FEB 60 58.25 104.94 $1.75 9.9% VRIO FEB 50 48.56 65.13 $1.44 9.7% NEWP FEB 50 48.69 114.63 $1.31 9.5% SDLI FEB 230 227.00 313.00 $3.00 9.3% VIGN FEB 145 143.00 210.19 $2.00 9.1% JNPR FEB 110 108.63 185.94 $1.38 9.0% HLIT FEB 85 83.44 126.63 $1.56 8.6% RNWK FEB 130 127.75 173.88 $2.25 8.2% ASDV FEB 50 48.81 118.63 $1.19 7.7% RIMM FEB 50 49.19 112.00 $0.81 7.1% ADAP FEB 65 63.25 121.88 $1.75 7.1% CTXS FEB 120 117.69 175.22 $2.31 7.0% CNXT FEB 70 69.31 104.94 $0.69 6.9% PGTV FEB 95 93.69 132.50 $1.31 6.3% NXTL FEB 100 98.12 124.69 $1.88 6.3% VIGN FEB 160 157.69 210.19 $2.31 6.2% PMCS FEB 150 148.12 288.63 $1.88 5.8% NVLS FEB 33 32.63 53.25 $0.71 5.8% Split 3 for 1 GMH FEB 95 92.75 108.00 $2.25 5.6% MERQ FEB 95 93.87 138.44 $1.13 5.6% NEW PICKS The positions that we find favorable (and will track every week) will be marked by asterisks. Do not enter these trades 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 to keep the issue. **** DITC - Ditech $167.00 *** 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 shares have rocketed over 1000% since the initial public offering last summer and Robertson Stephens analyst Paul Johnson says the company is poised for more growth in 2000. He recently raised his earnings-per-share estimates for the telecom equipment maker and reiterated a "buy" rating, based on DITC's announcement of orders for its echo-cancellation products from two major telecom companies. 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 has been on the move since early February when the stock broke-out of a recent consolidation area near $120. A new deal with Teleglobe (TGO) and today's announcement of the completed acquisition of Telinnovation, a leading developer of voice enhancement and echo cancellation technology, will help support the rally. Action Month & Option Open Closing Cost Monthly Req'd Strike Symbol Interest Price Basis Return Sell Call MAR 125 DUI CE 35 49.13 117.87 5.0% *** Sell Call MAR 130 DUI CF 22 45.88 121.12 6.0% Sell Put FEB 130 DUI NF 106 1.44 128.56 14.0% *** Sell Put FEB 135 DUI NG 84 2.19 132.81 20.0% Chart = /charts/charts.asp?symbol=DITC **** FIBR - Osicom Technologies $77.00 *** Hot Sector *** Osicom Technologies is a designer, manufacturer and marketer of optical networking products for use in intra-city networks. The company's products are used by telecommunication, Internet and cable TV service providers, and also installed in interoffice, corporate and campus network environments to provide both transport within and access to these networks. Other businesses include embedded networking, which provides system-on-silicon solutions to original equipment manufacturers, network access and wireless access. The recent feeding frenzy for optical networking stocks has boosted this bullish issue to record levels in the past week and the sector trend is extremely favorable. We offer this position as a method of entry for the current over-extended stock price. A reasonable cost basis exists near the previous resistance area at $55-$58. Action Month & Option Open Closing Cost Monthly Req'd Strike Symbol Interest Price Basis Return Sell Call MAR 55 QFW CK 123 25.25 51.75 5.2% *** Sell Call MAR 60 QFW CL 227 21.50 55.50 6.7% Sell Put FEB 60 QFW NL 123 1.06 58.94 21.8% *** Chart = /charts/charts.asp?symbol=FIBR **** HLIT - Harmonic $125.62 *** More Fiber Optics *** Harmonic designs, manufactures and markets digital and fiber optic systems for delivering video, audio and data services over cable, satellite and wireless networks. Their products include optical transmitters and node receivers, return-path transmitters and receivers, network management software, and data delivery systems that enable high-speed Internet access, video-on-demand, and other interactive services. Harmonic reported blow-out earnings in mid-January, besting the Street estimates with $0.33 per share on sales of $63 million, up 134% from $27.1 million for the fourth quarter of 1998. The company experienced strong demand for its fiber optic products across its worldwide base of cable customers and domestic sales increased 197% from the fourth quarter of 1998. During the quarter, Harmonic announced the acquisition of DiviCom (from C-Cube Microsystems) to help position the company as a leading supplier of open-system solutions for delivering video, voice and data over a variety of network architectures. The new combination will double the size of the company and allow them to offer more complete solutions for cable operators, as well as expand their penetration into telecommunications, satellite, wireless and other emerging broadband markets. They also intend to develop advanced fiber optic and digital systems, along with expanding their worldwide sales and marketing effort. This is simply another bullish issue in a hot sector with little upside resistance. Action Month & Option Open Closing Cost Monthly Req'd Strike Symbol Interest Price Basis Return Sell Put MAR 95 LQL OS 35 2.50 92.50 7.4% *** Sell Put MAR 100 LQL OT 18 3.50 96.50 10.0% Chart = /charts/charts.asp?symbol=HLIT **** Immunex - IMNX $164.00 *** Big Down Day! *** Immunex is a biopharmaceutical company that discovers, develops, manufactures and markets innovative therapeutic products for the treatment of human diseases including cancer, infectious diseases and immunological disorders. The Company's major product lines are Enbrel, Leukine, Novantrone and Thioplex. Enbrel is a soluble tumor necrosis factor receptor used to reduce inflammatory activity in patients with moderate to severe rheumatoid arthritis. Leukine is a granulocyte-macrophage colony-stimulating factor that is used to stimulate infection-fighting white blood cells. Novantrone and Thioplex are chemotherapy drugs that are used to treat pain in cancer patients. Immunex is also developing products to address ailments such as inflammatory disease, infection, multiple sclerosis, asthma and cancer. The recent big news for Biotech leader IMNX was the approval of NOVANTRONE (mitoxantrone for injection concentrate). The drug was unanimously recommended for approval to slow the worsening of neurologic disability and to reduce the relapse rate in patients with clinically worsening forms of relapsing-remitting and secondary progressive multiple sclerosis. This recommendation was made by the U.S. FDA Peripheral and Central Nervous System Drugs Advisory Panel. Unfortunately, when a reasonably conservative stock like IMNX climbs $50 in four days, there's room some profit-taking. In this case, we think today's activity offers another potential entry opportunity and a cost basis near technical support will suit us just fine. Action Month & Option Open Closing Cost Monthly Req'd Strike Symbol Interest Price Basis Return Sell Call MAR 130 IUU CF 241 41.50 122.50 5.0% *** Sell Put FEB 130 IUU NF 245 1.44 128.56 14.2% *** Chart = /charts/charts.asp?symbol=IMNX **** INSP - InfoSpace.com $182.43 *** E-nabler! *** InfoSpace.com provides private label solutions for content and commerce to Websites and Internet appliances. The company's affiliate network include a number of online giants such as America Online, Microsoft Network and Lycos. The cornerstone of InfoSpace.com's content and commerce services is its nationwide yellow pages and white pages directories. In addition to its directory services, the company also distributes other valuable information in order to help web users locate people, places and things in the real world. InfoSpace.com provides services for a unique area of cyber-space. The Internet is best known for providing information and allowing communication. InfoSpace.com helps improve the quality of these activities for Web sites and their customers. Their services are utilized by more than 2,500 consumer Web sites, e-tail merchants and wireless communications companies. They also have a number of infrastructure tools to boost their own brand identity. The potential of this company and the technical outlook for the issue are both favorable. The opportunity to own the stock at a discounted price is one of the benefits of this conservative strategy. Action Month & Option Open Closing Cost Monthly Req'd Strike Symbol Interest Price Basis Return Sell Call MAR 140 OHY CH 69 49.88 132.56 4.6% Sell Call MAR 145 OHY CI 25 46.88 135.56 5.7% *** Sell Call MAR 150 OHY CJ 328 44.00 138.44 6.9% Sell Put FEB 150 OHY NJ 224 1.00 149.00 8.1% *** Sell Put MAR 125 OHY OE 68 3.63 121.37 7.4% Sell Put MAR 130 OHY OF 17 4.63 125.37 9.3% *** Sell Put MAR 135 OHY OG 45 5.88 129.12 11.4% Chart = /charts/charts.asp?symbol=INSP **** ITVU - Intervu $128.50 *** Akamai Buy-out! *** InterVU provides Website owners and content publishers with feature-rich, cost-effective services for the delivery of streaming, live and on-demand video and audio content over the Internet. InterVU's streaming media services allow Internet users to view news, sports and other events from around the world, listen to live radio broadcasts, watch and listen to specialized content not widely available on television or radio, hear live earnings reports, accompanied by a graphical presentation, view a movie trailer before purchasing a movie ticket, videotape or DVD and watch music videos or listen to songs on demand. InterVU has also developed a suite of services that automate the publishing, distribution and programming of video and audio content. On Monday, Akamai Technologies (AKAM) announced plans to merge with Intervu in a $2.8 billion stock deal. Akamai's business is building faster web sites with leading-edge technology. With the addition of Intervu's products, they will become a full service provider in virtually every type of online content. Together, the combined entity will have a leading market share with over 1,000 of the Web's most popular sites. Of course Monday's deal remains subject to approval by shareholders and regulators. This combination of the Internet's most advanced presentation specialists should certainly produce a winner. Our basis for the position is the favorable upside potential for the new company and ITVU's recent technical support near $100. Action Month & Option Open Closing Cost Monthly Req'd Strike Symbol Interest Price Basis Return Sell Call MAR 105 QYU CA 20 30.25 98.25 5.6% *** Sell Call MAR 110 QYU CB 227 26.13 102.37 6.1% Sell Put FEB 105 QYU NA 13 1.44 103.56 16.6% *** Sell Put FEB 110 QYU NB 20 2.25 107.75 21.6% Chart = /charts/charts.asp?symbol=ITVU **** MUSE - Micromuse $206.00 *** Net Management *** Micromuse develops and supports scaleable, configurable, rapidly deployable, software solutions for the effective monitoring and management of multiple elements underlying an enterprise's information technology infrastructure. The company is a leading provider of service-level management software and their Netcool suite of applications is used by network service providers, Internet service providers, telecommunications firms, and mission-critical enterprises worldwide. An industry analyst recently commented that service providers who can deliver billing solutions, value-added services (such as voice-mail, caller id, wireless Internet, etc.) and trouble-free products with enhanced customer care will experience a number of benefits. They will enjoy increased customer interaction by providing the desired, unique services and will differentiate themselves from the competition. Micromuse certainly fits that description and we believe the issue is poised for higher share value growth in the future. The bullish trend is comfortably intact and the technical support near the cost basis provides a favorable, low risk position. Action Month & Option Open Closing Cost Monthly Req'd Strike Symbol Interest Price Basis Return Sell Call MAR 175 QVM CO 11 41.00 165.00 5.0% *** Sell Put FEB 175 QVM NO 24 1.00 174.00 6.4% *** Sell Put FEB 180 QVM NP 24 1.56 178.44 9.1% Chart = /charts/charts.asp?symbol=MUSE **** PROX - Proxim $111.19 *** Wireless Telecom *** Proxim designs, manufactures and markets wireless local area networking products based on radio frequency technology that enable mobile computer users to access host-based and local area networks. Proxim makes components for handheld data collection terminals, notebook computers, and other products used to access wireless LANs. Electronics manufacturers such as Intermec (40% of sales) incorporate Proxim's RangeLAN radio-frequency transceiver modules and wireless LAN adapters into their LAN access products. Proxim also markets branded products to systems integrators and value- added resellers in the health care, education, financial services, and retail industries. Its Symphony line provides wireless Internet access in homes and small businesses. Proxim is working with Intel and Motorola to develop products for the hot wireless home networking market. In the most recent quarter, Proxim reported record revenues, 30% higher than the previous period. They also acquired Wavespan, a developer of wireless broadband access solutions and announced the acquisition of Micrilor, a leader in developing unlicensed spread spectrum wireless technology. These additions will broaden its wireless networking capabilities and help it become one of the dominant companies in the industry. The technicals have begun to strengthen as Proxim is showing signs of moving out of its recent ascending triangle. Although it might not break near-term resistance, we favor the technical support near $85 for this conservative position. Action Month & Option Open Closing Cost Monthly Req'd Strike Symbol Interest Price Basis Return Sell Put MAR 80 WQG OP 40 1.50 78.50 5.2% *** Sell Put MAR 85 WQG OQ 25 2.63 82.37 8.7% Chart = /charts/charts.asp?symbol=PROX ************************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. Move your trading into the next millennium with Preferred Capital Anything else is too slow! http://www.PreferredTrade.com/CF/Home.CFM?ID=OIN ************************************************************** ******************* FREE TRIAL READERS ******************* If you like the results you have been receiving we would welcome you as a permanent subscriber. The monthly subscription price is 39.95. The quarterly price is 99.95 which is $20 off the monthly rate. We would like to have you as a subscriber. You may subscribe at any time but your subscription will not start until your free trial is over. To subscribe you may go to our website at www.OptionInvestor.com and click on "subscribe" to use our secure credit card server or you may simply send an email to "Contact Support" with your credit card information,(number, exp date, name) or you may call us at 303-797-0200 and give us the information over the phone. You may also fax the information to: 303-797-1333 *********** DISCLAIMER *********** This newsletter is a publication dedicated to the education of options traders. The newsletter is an information service only. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. The newsletter picks are not to be considered a recommendation of any stock or option but an information resource to aid the investor in making an informed decision regarding trading in options. It is possible at this or some subsequent date, the editor and staff of The Option Investor Newsletter may own, buy or sell securities presented. All investors should consult a qualified professional before trading in any security. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. The newsletter staff makes every effort to provide timely information to its subscribers but cannot guarantee specific delivery times due to factors beyond our control.
Option Investor Inc is neither a registered Investment Advisor nor a Broker/Dealer. Readers are advised that all information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All opinions, analyses and information included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we do not necessarily update such opinions, analysis or information. Owners, employees and writers may have long or short positions in the securities that are discussed.
Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report and website should be independently verified.
To ensure you continue to receive email from Option Investor please add "firstname.lastname@example.org"
Option Investor Inc