Option Investor

Daily Newsletter, Wednesday, 02/23/2000

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The Option Investor Newsletter         Wednesday  2-23-2000
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)
       2-23-2000           High     Low     Volume Advance Decline
DOW    10225.70 -  79.10 10338.30 10164.90   993,740k 1,235  1,758
Nasdaq  4550.33 + 168.21  4567.97  4382.12 1,892,802k 2,199  1,987
S&P-100  736.30 +   4.72   740.28   724.43    Totals  3,434  3,745
S&P-500 1360.69 +   8.52  1370.11  1342.44            47.8%  52.2%
$RUT     549.91 +   8.96   549.93   540.95
$TRAN   2420.28 -  38.86  2461.72  2417.48
VIX       26.26 -   1.29    28.36    25.45
Put/Call Ratio       .37

Greenspan Related Turbulence Calms As Records Fall

The Greenspan factor was in full force today and the related 
turbulence was relatively mild.  With the Fed Chief speaking 
before congress today, the markets were mixed early before 
turning into a full-fledge market rally.  Good old Greenspan 
was unusually candid when speaking about the future direction 
of the economy.  He must have awoke on the right side of the 
bed too, because his comments were extremely market-friendly.  
The Nasdaq responded in a big way as it closed with a 168 point 
gain to a record high.  That is nearly a 4% gain on the day.  
Even the Dow couldn't sour the sentiment with a 79 point loss.  
What a day to be long this market!

Let's take a close look at some of the comments from our best 
friend (for today anyway), Alan Greenspan.  He did make some 
bearish comments, using an analogy of a ship headed towards a 
dock that needs to turn ahead of time if it wants a soft landing, 
referring to future interest rate hikes to keep the economy in 
check.  In general though, his comments were both blunt and 
upbeat for the future.  He said the labor pool was shrinking, 
but did not see any signs of inflation yet.  He said that he 
would not be specifically targeting the stock market.  And when 
asked how much the American public should fear inflation on a 
scale of 1 to 5, he responded by asking if he could go lower 
than one.  These comments were taken to heart by investors and 
the stage was set for a mammoth rally on the street.  You just 
get the feeling that no one wants to miss the next wave and 
are sitting on the sidelines with checkbook in hand for that 
next brief dip in the markets.  Missing an entry point is the 
only real fear on Wall Street right now. 

Back to the markets where records were falling.  The Nasdaq 
broke both an intraday and closing high by ending at 4550.21.  
The Russell 2000 also had a big day closing up 8.93 to 549.88, 
while the S&P 500 finished at 1360.69, up 8.52.  Like we said 
earlier, the Dow bore the brunt of the selling, giving back 
Tuesday's gains and finishing down 79.11 to 10225.73.  Volume 
was big with 1.87 bln traded on the Nasdaq and 980 mln on the 



The VIX retreated after signaling a buying opportunity when 
it hit 30 yesterday.  Now that cooler heads have prevailed, the 
VIX has retreated to 26.98, a more neutral position.  The 
30-year treasury also remained quiet, finishing with a yield 
of 6.12%.  The bond market was hardly a factor in today's 
action after it was realized that Greenspan had said little 
other than what he said to the House banking committee a week 


You don't have to look hard to find sectors moving higher.  The 
Biotechs were back leading the way higher like they have for 
most of the year with a 5% gain today.  Other hot sectors 
include the Brokers, Internet, Hardware, and Software to name  
a few.  The list of big point gainers was full of the same old 
stuff, VRSN +19, JDSU +20.75, NSOL +36.63, QLGC +19.81, LHSP 
+22.50, BVSN 20.75, DISH +20.81, EBAY +20.44, and QCOM +16.31. 
Sector losers also had a familiar ring with Banks, Cyclicals, 
Chemicals, Healthcare, Utilities and Gold/Silver all heading 

Shares of Chemdex (CMDX) skyrocketed today following Tuesday's 
announcement that the company would be venturing into 
uncharted territory by taking the life sciences industry 
and combining it with the booming world of Business-to-Business.  
Chemdex will be forming a new corporation by the name of 
Ventro, which will begin trading under ticker symbol VNTR 
in March.  While Ventro will maintain its current business in 
the agricultural, pharmaceutical, and biotech product arena, 
the company plans to expand into such areas as health care as 
well.  Chemdex is introducing VNTR as the "leading builder 
and operator of B2B vertical marketplace companies."

Shares of Incyte Pharmaceuticals moved up today on a raised 
price target and the completion of a private offering.  
Deutsche Banc Alex Brown raised its 12-month price target 
for Incyte from $235 to $374.  Incyte also reported that it 
had raised $422 million through a private sale of its stock.

Gateway began the day with a few upbeat comments from Bear 
Stearns analysts.  The analysts stated that "we think the 
company has multiple engines of growth coupled with better 
execution against its goals of diversifying its revenue 
streams."  Gateway then came out with a few upbeat comments 
of its own, announcing its goal of generating $30 billion in 
revenue by 2004, while expanding its product lines.  In 
addition, GTW announced several new strategic alliances which 
include Sun Microsystems, OfficeMax and eSoft.  Shares of GTW 
finished the day at $67.63, up $10.44.

Merrill Lynch analyst Henry Blodget, initiated coverage on 
eBay with a Buy rating and a 12-18 month price target of $175. 
The report went on to comment "We view the stock as a core 
holding.  In the Internet sector, we believe it is important 
to stick with the clear leaders, and eBay is one."  eBay closed 
today's session up over 20 points at $154.94.

Two other companies reaping the benefits of kind words from 
Merrill Lynch analysts, were Time Warner and America Online.  
AOL was given a 12-month price target of $90.  The two analysts,
Jessica Reif Cohen and Henry Blodget, commented that the recent 
slump in the share price of both companies following the merger 
announcement, may have resulted in "an excellent buying 
opportunity."  AOL, which had traded through an important 
$50 support level in yesterday's session, reveled in the news 
and made a move back up to close at an even $57, while posting 
volume of over 43 million shares.  Shares of Time Warner closed 
the session up $3.  Henry Blodget made an appearance on CNBC 
after today's market close to reiterate Merrill's bullish stance 
on the pending merger and both of the companies involved.  He 
further commented that he believed AOL was currently undervalued, 
a prospect that he found exciting in the current market.
In the quest to become the grandest of them all, MGM Grand has 
offered approximately $3.4 billion, or $17 per share, to 
purchase Las Vegas casino, Mirage Resort.  The question MGM 
investors seem to be asking is, "what's in it for us?"  The 
deal could have a prolonged impact on MGM's earnings.  The 
proposed merger has many investors wondering if the move is 
more image than business driven.  Mirage has until the 8th of 
March before the offer expires.  

The only conclusion I can draw after witnessing the strength 
of the Nasdaq today is that investors are more afraid of 
missing the next big move than they are of a correction.  This 
is not real fear.  What ever happened to having your finger 
on the speed dial to your broker's office wanting to sell it 
all?  That gut-wrenching feeling that if the market drops by 
just one more tick you are burning your investing books and 
buying 10-year CDs.  CDs?  Are you kidding me?  Even Alan 
Greenspan concedes today that this is a new economy.  "The 
new economy needs a new kind of monetary policy" to be exact.  
This policy has yet to be fine-tuned and there is a reason 
for that.  It is hard to test a new fix when there isn't a 
problem to test it on.  Until there is, don't get caught 
dumping your positions to someone else right at the bottom.

Looking ahead to tomorrow, Durable Goods orders for January 
are to be released before market open.  Consensus is for a 
decline of 2.0%.  Look for this only to have an impact if it 
is way out of line of estimates.  Word on the street is that 
still more money is coming in from 401K, tax returns and 
bonuses.  That should keep the market moving higher.  The Dow 
could be a non-factor again.  10,000 on this index is still 
highly likely, but you won't likely see a real sense of fear 
unless you get a couple days of closing below that mark.  We 
could be seeing what we did last October when buyers just 
stood aside until it hit that mark and then came flooding 
back in.  Most stocks on my screen look to be higher after-
hours so look for a pop on the open barring any unforeseen news.  
That could make it tough to find entry points, but that is 
usually the case among winners, especially on the Nasdaq.  
Just don't be lured into the value plays on the Dow until we 
see clear signs of a reversal in sentiment.  It's like my  
friend Louis says, "Sure I can get into the WNBA games cheap, 
but do I really want to be there?"  Maybe once the action 
picks up.  But until then, I will do my playing where the 
stocks are hot, the moves are fast and the result is a slam 

Ryan Nelson
Asst. Editor

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Portal Software Posts Unexpected Profit
By Cindy Christ

If you haven't heard about it already, here's a company you'll
want to keep an eye on: Portal Software (PRSF).

By targeting its products and services to Web-based
communications, service and infrastructure providers, the
Cupertino, Calif.-based vendor of billing and customer
management software aims to grow its business at the same
torrid pace as expansion in the Internet.

So far, its plan is working.

Experts estimate the market for Internet Protocol billing
software will double every year to more than $5 billion by
2004. And according to analysts polled by Zacks Investment
Research, Portal's earnings should grow 60 percent per year
over the next five years.

Credit Suisse First Boston analyst Wendell Laidley boosted his
revenue and profit estimates for the Cupertino, Calif.-based
firm Wednesday, propelling shares more than 5 percent to
$77.50. Intraday, shares traded as high as $80.56.

Laidley lifted his fiscal 2001 revenue outlook to $185 million
from $169 million, and set earnings per share at 2 cents.

For 2002, Laidley set revenues at $259 million and profits at
12 cents a share.

The upgrade followed Portal's fourth quarter report Tuesday,
when the company posted an unexpected profit.

Portal, which Merrill Lynch last month added to its list of
top 10 technology picks, has beat analysts' consensus estimates
every quarter since going public last May.

In the fourth quarter ended Jan. 31, Portal posted revenues of
$39 million, up 252 percent from a year ago.

Net income was $400,000, versus a net loss of $6.7 million last
year. Analysts were expecting a 2-cent loss.

For full-year 2000, Portal reported sales of $103 million, up
286 percent over 1999. Net loss for the year was $7.6 million
compared to a net loss of $17.4 million last year.

"This year, Portal has played a key role in helping many of the
world's leading service providers build exciting new Internet-
based businesses," said John Little, Portal founder and CEO, in
a statement.

"By providing the market with the business infrastructure that
is driving the Internet economy, we plan to capitalize on our
market momentum and continue cementing our leadership position
during FY 2001," he added.

During the quarter, Portal also scored strong wins in its
three-pronged strategy to tackle the hottest segments of the
Internet's build-out.

Portal has made the wireless Internet a major focus of its
sales efforts this year, recently forming strategic
partnerships with Motorola, Hewlett Packard and Nokia that will
enable mobile service providers to offer new wireless Internet

The company already handles the billing for the Palm VII, a
version of the world's top-selling handheld computer, and for
radio Palm Pilot.

On Wednesday, Nokia Networks said it would incorporate Portal's
Infranet customer management and billing software into its
next-generation wireless technology.

The company also has been busy signing up clients in the
broadband, or high-speed Internet access market, targeting
Digital Subscriber Line (DSL) and Internet service providers,
next-generation telecommunications carriers, and wireless
Internet and electronic commerce businesses.

Portal's timing in the DSL arena couldn't be better. This year,
demand for DSL service is expected to explode thanks to
legislation that will cut service costs in half for consumers
and small- to medium-sized businesses.

Portal's customers include all three of the top DSL service
providers, Covad Communication Group, NorthPoint Communications
Group and Rhythms NetConnections, plus Qwest Communications,
USinternetworking, and Deutsche and France Telekom.

International expansion is the third leg in Portal's Internet
plan of attack. In the fourth quarter, the company hired
Netscape Japan's former general manager to run its Japanese

The company also signed new customer deals in Latin America and
with Telenor Mobile and Sonera, the leading mobile
telecommunications providers in Norway and Finland.

"We experienced significant growth in all regions which
resulted in record revenue for both the fourth quarter and full
year," said Portal Software chief financial officer Jack

If all of this isn't enticing enough, consider the fact that
Portal boasts profit margins of around 97 percent on its
license revenues.

Would-be investors might also take solace in knowing that Cisco
Systems, which bought three million shares in Portal at its $14
IPO price, owns 4 percent of the company, representing the
largest cash investment the Internet networking giant has ever
made in a public company.

Anderson Consulting also is a strategic investor.

While there are traditional billing companies who'd like to
convert to Internet billing services, analysts say Portal has
first-mover advantage and no comparable competitors.

When it comes to Internet Protocol-based billing services, it
seems businesses are putting their checks in the mail, and
they're on their way to Portal Software.


ERICY - LM Ericsson Telephone $91.88 +0.63 (+3.19 this week)

Ericsson is a world-leading supplier in the fast-growing and 
dynamic telecommunications and data communications industry, 
offering advanced communications solutions for mobile and 
fixed networks, as well as consumer products.  Ericsson is a 
total solutions supplier for all customer segments: network 
operators and service providers, enterprises and consumers. 
Ericsson has more than 100,000 employees, representation in 
140 countries and clearly the world's largest customer base 
in the telecommunications field. 

Sunday's Write Up

This is the kind of call that you want to pick up.  ERICY is 
shaping up nicely for us as it has continued its steady upward 
climb.  ERICY did trade through its 10-dma, which is currently 
at $88, and could now offer some support going forward.  The 
next level of resistance for ERICY looks to be at $90, which 
it did flirt with during Friday's session.  A breakthrough 
here backed with the kind of strong volume we have been seeing, 
will be a nice bullish indication.  As you will see below, we 
think that the positive news out on ERICY will help ERICY to 
trade higher next week.

On Saturday morning, Ericsson Microelectronics announced that 
they would be working with QUALCOMM to co-develop chips using 
what is known as the Bluetooth Standard.  This enables data to 
move between cellular phones, notebook PCs, and other handheld 
devices over a wireless network.  In other ERICY related news, 
it is anticipated that telecom stocks, along with many Internet 
and techs, will benefit from the upcoming computer and technology 
trade show known as CeBIT.  The trade show will be held from 
February 23rd through March 1st in Hanover, Germany.  It is 
expected that Ericsson will have a very visible presence at the 
trade show.  They plan to show off many of their products for 
e-commerce, the mobile office, and the mobile Internet.  And 
finally, another little tidbit in regards to the pending 4:1 
stock split.  There will be a vote held at the Annual General 
Meeting for approval of the split.  ERICY believes that the 
actual split will take place in May. 

Tuesday's Write Up

This is turning out to be a news driven momentum play.  ERICY 
jumped out of bed this morning, gapping up $3.75 to a new 52-
week high of $93.25.  ERICY then quickly pulled back to test 
support at $90.  This level held nicely, and provided some 
room for entry.  ERICY demonstrated some great relative 
strength against today's rather bleak market too.  Part of 
this may be attributed to a strong Euro, which helped boost 
a few of the telecom stocks.  The current level could provide
some potential for new entries should ERICY continue on with 
its positive momentum run.  Watch for $90 to hold on the 
pullbacks.  On Monday, ERICY received a nice mention in an 
article written by two Internet stock columnists, Michael Ward 
and Mido Shammaa.  It was written that ERICY offers "an 
exciting opportunity to develop a position in the burgeoning 
global Internet equipment market".  They went on to comment 
that investing in a stock like ERICY offers investors combined 
exposure to wireline telecom, broadband and wireless equipment 
sectors.  ERICY announced on Monday that it would be investing 
approximately $26 million in its Malayasian plant.  ERICY also 
revealed intentions to invest in the cellular market in Mexico.

BUY CALL MAR- 80 RQC-CP OI= 506 at $13.75 SL=11.00 
BUY CALL MAR- 85 RQC-CQ OI=1414 at $ 9.88 SL= 7.25
BUY CALL MAR- 90*RQC-CR OI=1592 at $ 7.00 SL= 5.25
BUY CALL MAR- 95 RQC-CS OI= 817 at $ 4.63 SL= 2.75
BUY CALL MAR-100 RQC-CT OI= 408 at $ 2.88 SL= 1.50

Picked on Feb 15th at    $86.38     P/E = 120
Change since picked       +5.50     52-week high=$93.25
Analysts Ratings     8-11-4-0-0     52-week low =$20.50
Last earnings 01/00   est= 0.32     actual= 0.36
Next earnings 04-28   est= 0.17     versus= 0.04
Average Daily Volume = 5.18 mln


All of our February candidates remained at maximum profit on
Friday's expiration.  While the Market continues to be divergent
and highly volatile, our strategy excels using high probability
"in-the-money" covered calls and deep "out-of-the-money" naked
puts.  During the month of March, we will continue to offer
conservative entry points in our quest for consistent, low risk

Summary of Previous Picks:

NOTE: February data is based on Friday's expiration day prices.

Covered Calls: (Margin would double the listed Monthly Return)

Stock  Strike Strike Cost   Current Profit  Monthly
Symbol Month  Price  Basis  Price   (Loss)  Return

MRVC    FEB     60   58.00   90.50  $2.00    6.6%
CTXS    FEB     63   61.00   86.50  $2.00    6.2% Split 2 - 1
RNWK    FEB     75   71.72   84.44  $3.28    6.0% Split 2 - 1
RIMM    FEB     60   57.38  108.50  $2.62    6.0%
NEWP    FEB     55   52.06  115.38  $2.94    5.7%
DITC    FEB     90   85.25   93.50  $4.75    5.6%
JNPR    FEB    125  120.12  238.31  $4.88    5.4%
NSM     FEB     50   48.63   62.00  $1.37    5.4%
ASDV    FEB     60   57.00  105.00  $3.00    5.3%
NEWP    FEB     65   63.25  115.38  $1.75    5.3%
QCOM    FEB    125  119.00  134.50  $6.00    5.1%
CNXT    FEB     65   61.93  111.88  $3.07    5.0%
HLIT    FEB     95   91.56  120.75  $3.44    5.0%
VRIO    FEB     55   52.50   73.63  $2.50    4.8%
MERQ    FEB     55   53.16   89.75  $1.85    4.6% Split 2 - 1
ADAP    FEB     75   71.06   99.00  $3.94    4.6%
CNXT    FEB     75   73.50  111.88  $1.50    3.9%
GMH     FEB    100   95.81  102.44  $4.19    3.6%
NVLS    FEB     38   36.48   51.50  $1.53    3.4% Split 3 - 1

SCMR    MAR     95   89.31  113.88  $5.69    6.5%
LWIN    MAR     80   75.63   87.38  $4.37    5.9%
NEON    MAR     55   52.00   88.75  $3.00    5.8%
INSP    MAR    145  135.56  194.50  $9.44    5.7%
ITVU    MAR    105   98.25  143.00  $6.75    5.6%
CHINA   MAR     95   90.12  125.00  $4.88    5.5%
TIBX    MAR     65   61.79   87.00  $3.20    5.3% Split 3 - 1
FIBR    MAR     55   51.75   93.00  $3.25    5.2%
ENTU    MAR     65   61.88   85.50  $3.12    5.1%
IMNX    MAR    130  122.50  199.50  $7.50    5.0%
MUSE    MAR     87   82.50  116.63  $4.50    4.5% Split 2 - 1
DITC    MAR     62   58.94  100.13  $3.07    4.3% Split 2 - 1

Naked Puts:

Stock  Strike Strike Cost   Current Profit  Monthly
Symbol Month  Price  Basis  Price   (Loss)  Return

FIBR    FEB     60   58.94   89.75  $1.06   21.8%
ITVU    FEB    105  103.56  135.00  $1.44   16.6%
IMNX    FEB    130  128.56  193.38  $1.44   14.2%
DITC    FEB     65   64.28   93.50  $0.72   14.0% Split 2 - 1
DITC    FEB     85   81.25   93.50  $3.75   13.7%
NEWP    FEB     60   58.81  115.38  $1.19   13.6%
IMNX    FEB    115  112.50  193.38  $2.50   13.5%
MRVC    FEB     55   53.94   90.50  $1.06   12.6%
NSM     FEB     50   48.88   62.00  $1.13   11.9%
QCOM    FEB    115  111.12  134.50  $3.88   11.8%
RNWK    FEB     65   64.00   84.44  $1.00   10.8% Split 2 - 1
CTXS    FEB     60   58.98   86.50  $1.03   10.8% Split 2 - 1
JNPR    FEB    113  110.62  238.31  $2.38   10.1%
CNXT    FEB     60   58.25  111.88  $1.75    9.9%
VRIO    FEB     50   48.56   73.63  $1.44    9.7%
NEWP    FEB     50   48.69  115.38  $1.31    9.5%
SDLI    FEB    230  227.00  329.81  $3.00    9.3%
VIGN    FEB    145  143.00  209.00  $2.00    9.1%
JNPR    FEB    110  108.63  238.31  $1.38    9.0%
HLIT    FEB     85   83.44  120.75  $1.56    8.6%
RNWK    FEB     65   63.88   84.44  $1.13    8.2% Split 2 - 1
INSP    FEB    150  149.00  200.25  $1.00    8.1%
ASDV    FEB     50   48.81  105.00  $1.19    7.7%
RIMM    FEB     50   49.19  108.50  $0.81    7.1%
CTXS    FEB     60   58.85   86.50  $1.16    7.1% Split 2 - 1
ADAP    FEB     65   63.25   99.00  $1.75    7.1%
CNXT    FEB     70   69.31  111.88  $0.69    6.9%
MUSE    FEB    175  174.00  230.00  $1.00    6.4%
PGTV    FEB     95   93.69  105.63  $1.31    6.3%
NXTL    FEB    100   98.12  118.69  $1.88    6.3%
VIGN    FEB    160  157.69  209.00  $2.31    6.2%
PMCS    FEB     75   74.06  152.06  $0.94    5.8% Split 2 - 1
NVLS    FEB     33   32.63   51.50  $0.71    5.8% Split 3 - 1
MERQ    FEB     47   46.94   89.75  $0.57    5.6% Split 2 - 1
GMH     FEB     95   92.75  102.44  $2.25    5.6%

SCMR    MAR     85   81.50  113.88  $3.50   13.3%
NEON    MAR     50   48.44   88.75  $1.56   10.9%
MUSE    MAR     82   80.19  116.63  $2.32    9.9% Split 2 - 1
ENTU    MAR     60   58.31   85.50  $1.69    9.8%
CHINA   MAR     85   82.62  125.00  $2.38    9.3%
INSP    MAR    130  125.37  194.50  $4.63    9.3%
LWIN    MAR     70   68.19   87.38  $1.81    9.1%
TIBX    MAR     58   56.83   87.00  $1.50    8.5% Split 3 - 1
HLIT    MAR     95   92.50  126.38  $2.50    7.4%
PROX    MAR     80   78.50  128.88  $1.50    5.2%


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 you want to keep the issue.


BVSN - Broadvision  $207.75   *** Split Rally? ***

BroadVision develops, markets and supports fully integrated
large-scale, application software exclusively designed to
manage one-to-one relationships for the extended enterprise.
Their end-to-end solutions enable businesses to capitalize on
the Internet as a unique platform that empowers businesses to
enhance commerce, provide critical self-service functions and
deliver highly specialized information to customers, suppliers,
distributors, and employees of the extended enterprise through
real-time interactive one-to-one relationships.  BroadVision's
One-To-One product family allows businesses to tailor Website
content to the needs and interests of individual users by
personalizing each visit on a real-time basis.  There unique
applications achieve this result by interactively capturing
Website visitor profile information and targeting organized
enterprise content to each visitor based on easily constructed
business rules.

Lots of new agreements and alliances for this software giant
but the big news this week concerned the settlement of its
patent infringement suit against Art Technology Group (ARTG).
As part of the settlement, Art Technology will pay an ongoing
licensing fee to BroadVision.  The total payment will amount to
$8 million initially, and $7 million more during the next three
years.  Of course the real reason that investors are buying this
issue is the upcoming split.  BroadVision will split its stock
3-for-1, in the form of a dividend.  The record date of the split
was Monday, February 21.  The shares resulting from the split are
expected to be distributed on or about March 13 -14, 2000.

Action    Month &  Option  Open     Closing  Cost     Monthly
Req'd     Strike   Symbol  Interest Price    Basis    Return

Sell Call MAR 170  BZV CN  1282     44.13   163.62     5.2% ***
Sell Call MAR 175  BZV CO  1272     40.63   167.13     6.2%

Sell Put  MAR 155  BZV OK  224       2.81   152.19     8.4% 
Sell Put  MAR 160  BZV OL  701       3.75   156.25    10.9% ***
Sell Put  MAR 165  BZV OM  237       4.63   160.37    13.3%
Sell Put  MAR 170  BZV ON  719       5.88   164.12    15.2%

Chart =


CRA - Celera Genomics Group  $167.00  *** Bio-tech Leader ***

Celera Genomics Group generates and commercializes genomic
information to accelerate the understanding of biological
processes and to assist pharmaceutical, biotechnology, and life
science research entities in areas of research including: new
drugs and improved drug development processes; novel genes and
factors that regulate gene expression; and interrelationships
between genetic variability, disease, and drug response.

Through GenScope, Celera offers genomics-related products and
services including gene discovery, target discovery/validation,
efficacy and safety assessment, and pharmacogenomics study
services.  Through AgGen, the company specializes in providing
services to the agriculture market.  AgGen provides genotyping
and genomic services for plant and animal breeding programs.

This is an aggressive position on an incredibly volatile and
industry dominating issue.  We thought CRA might be at the end
of it's run in early January when we played the stock at $160.
Now it has doubled and we still don't know where it will finish.
The desire to own these stocks is just amazing and Genomics, the
study of gene structure and function in order to develop drugs,
is one of the hottest topics in recent months.  Investors simply
don't know when to quit, having driven shares of these companies
to new highs on hopes that health care will be revolutionized by
what they discover.  Some companies are also using their genomic
discoveries to develop new drugs and that trend should continue
to propel the sector higher.

As far as CRA's current technicals, there is some support near
$130, but this issue has the ability to move quickly, in either
direction.  Monitor the play on a daily basis.

Action    Month &  Option  Open     Closing  Cost     Monthly
Req'd     Strike   Symbol  Interest Price    Basis    Return

Sell Call MAR 130  CKA CF  155      42.38   124.62     5.7% ***
Sell Call MAR 135  CKA CG  159      38.75   128.25     7.0%

Sell Put  MAR 115  CRA OC  48        2.00   113.00     7.5%
Sell Put  MAR 120  CRA OD  60        2.81   117.19    10.3% ***
Sell Put  MAR 125  CRA OE  30        3.63   121.37    13.0%
Sell Put  MAR 130  CRA OF  38        5.13   124.87    17.6%

Chart =


INKT - Inktomi  $136.63   *** New All-Time High! ***

Inktomi develops and markets scaleable software applications made
to enhance the performance and intelligence of large-scale
networks.  Traffic Server is Inktomi's large-scale network cache
application designed to address capacity constraints in high-
traffic network routes.  The Traffic Server software speeds
traffic flow on the Internet by storing information closer to
the user.  Traffic Server increases effective bandwidth, adding
speed, reliability and scalability to the network.  Their Internet
search engine application enables Internet portals and other
Website customers to provide online search services to end-users.
The Internet shopping engine, Inktomi's newest application, was
initiated with the acquisition of C\\2\\B Technologies.  The
shopping engine is designed to enable end-users to quickly and
easily locate products of interest, compare features and prices
among products, and locate and purchase such products through
participating merchants.

Inktomi's pride and joy is their new shopping engine, a tool that
provides a robust commerce infrastructure for many of the Web's
leading destination sites and merchants.  The newest customer for
the product is ReleaseNow.com, a provider of e-commerce services.
ReleaseNow.com's users now have the ability to display and sell
downloadable software titles on the Inktomi Shopping Engine.  The
company is the first e-commerce services provider to market and
sell downloadable digital goods through Inktomi's platform and
network of partners.  Officials at ReleaseNow.com say the Inktomi
Shopping Engine will provide powerful commerce capabilities and 
distribution for our customers, accelerating time to market and
lowering customer acquisition costs.

Goldman Sachs recently offered a new BUY rating on the company
with a spot on the "recommended" list, based on the outstanding
progress of the shopping engine.  It appears that investors agree
with their assessment.

Action    Month &  Option  Open     Closing  Cost     Monthly
Req'd     Strike   Symbol  Interest Price    Basis    Return

Sell Call MAR 125  KYQ CE  504      17.00   119.63     5.9% ***

Sell Put  MAR 110  KYQ OB  290       1.63   108.37     7.3% ***
Sell Put  MAR 115  KYQ OC  153       2.38   112.62     8.9%
Sell Put  MAR 120  KYQ OD  138       3.50   116.50    11.1%

Chart =


ITVU - InterVu  $143.00   *** A Formidable Team! ***

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 web 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.

Early this month, Akamai Technologies (AKAM) announced plans to
merge with Intervu in a $2.8 billion stock deal.  AKAM's business
is building faster web sites with leading-edge technology.  With
the addition of ITVU's products, they will become a full service
provider in virtually every type of online content.  Together, the
combined company will have a leading market share with over 1,000
of the Web's most popular sites.  Of course the deal is subject to
approval by shareholders and regulators but most experts believe
it will eventually be approved.

Another big announcement occurred this last as Akamai reported it
has entered an alliance to connect its servers within the network
of Internet media company America Online (AOL).  AKAM is placing
its servers within the American Online network to boost the speed
and reliability of their services.  Under the agreement, Akamai,
whose customers include CNN, Yahoo, Martha Stewart Living and the
Motley Fool, will make payments to AOL based on its future revenue

The combination of the Internet's most advanced video presentation
specialist and the leading web-page enhancement company should
ultimately produce a winner.  ITVU's recent technical support near
$100 and the bullish upside potential provides the basis for a
number of favorable, low risk positions.  Until this issue proves
us wrong, we are going to keep offering it as a candidate.

Action    Month &  Option  Open     Closing  Cost     Monthly
Req'd     Strike   Symbol  Interest Price    Basis    Return

Sell Put  MAR 100  QYU OT  64       1.44     98.56     6.3%
Sell Put  MAR 105  QYU OA  31       2.06    102.94     8.9% ***
Sell Put  MAR 110  QYU OB  10       3.00    107.00    12.6%
Sell Put  MAR 115  QYU OC  66       4.00    111.00    15.9%

Chart =


MRVC - MRV Communications  $99.94   *** Own This One! ***

MRV Communications is a manufacturer and marketer of optical
high-speed networks that integrate switching, routing, remote
access and fiber optic transmission systems. The company designs,
manufactures and sells computer networking products, primarily
Ethernet LAN routing switches, WAN and remote access devices and
fiber optic components for the transmission of voice, video and
data across enterprise, telecommunications and cable TV networks.
The company's advanced networking solutions greatly enhance the
functionality of local area network and wide area networks by
reducing network congestion while allowing end users to preserve
their legacy investments in pre-existing networks and providing
cost-effective migration paths to next generation technologies
such as Gigabit Ethernet.

MRVC is growing to meet the needs of the industry and in early
February, the company announced that it completed expansion of
its photonic capacity with a new state-of-the-art facility for
research and development, engineering, packaging, integration,
testing and sales and marketing.  This expansion will increase
their construction capacity, provide a quicker time to market
with better quality control and lower manufacturing costs.  The
facility will also improve their technical research ability and
allow the company to increase its staff with new scientists and
engineers.  The CEO says the added capacity will provide new
momentum to MRVC's goal of dominating the fiber optic component

Evidently the plan is working as Tuesday's earnings were favorable
and investors lifted the issue to new highs after the announcement.
The option premiums are still excellent and from our point of view,
the issue is just too strong to suffer much in any post-earnings
sell-off.  The consolidation area near $80 should provide adequate
support in the event of a short-term market downturn.

Action    Month &  Option  Open     Closing  Cost     Monthly
Req'd     Strike   Symbol  Interest Price    Basis    Return

Sell Put  MAR 70   VQX ON  234       0.94    69.06     5.9% ***
Sell Put  MAR 75   VQX OO  210       1.63    73.37    10.0%

Chart =


PUMA - Puma Technology  $129.00  *** Another Split! ***

Puma Technology develops, markets and supports mobile device
management and synchronization software designed to improve the 
productivity of handheld computers, smart phones and other
wireless personal communications platforms.  The acquisition of
NetMind gives the company a complete e-commerce strategy at a
time when businesses are trying to offer consumers more wireless
and mobile data services.  With Puma's unique, leading-edge data
synchronization technology, the e-commerce technology from NetMind
and the technology for rendering Web pages on hand-helds from the
August acquisition of  Proxinet, Puma is poised to become the next
leader in the industry.

Of course today's big news was the split announcement.  Puma's
Board of Directors has approved a two-for-one split of its common
stock.  The stock split will be affected as a stock dividend and
shareholders of record as of March 8, 2000 will receive a stock
certificate representing one additional share for each share of
common stock held on the record date.  These certificates will be
distributed on March 22, 2000.

The rally should be significant, hopefully carrying the issue to
new all-time highs.  We favor the ITM positions and the recent
reversal to a new trend (bullish) in this conservative, momentum

Action    Month &  Option  Open     Closing  Cost     Monthly
Req'd     Strike   Symbol  Interest Price    Basis    Return

Sell Call MAR 95   PUP CS  95       37.50    91.50     5.1% ***
Sell Call MAR 100  PUP CT  176      33.75    95.25     6.6%

Sell Put  MAR 85   PUP OQ  115       1.38    83.62     6.7%
Sell Put  MAR 90   PUP OR  150       2.13    87.87    10.1% ***
Sell Put  MAR 95   PUP OS  21        3.00    92.00    13.8%

Chart =


SMTC - Semtech  $73.38   *** Earnings Break-Out! ***

Semtech Corporation designs, manufactures and markets a wide range
of analog and mixed-signal semiconductors, including standard
semiconductor products, power management circuits, automated test
equipment circuits, transient voltage suppressers, advanced
communication circuits, rectifier and assembly products.  Their
devices are used in a variety of applications including computer,
communications, industrial, military-aerospace and automotive.
They also provide custom and application specific integrated
circuits, and a limited amount of wafer foundry services to other
electronic component manufacturers.  Their products are also used
in personal computers and related peripherals.

Semtech has recently introduced a number of new products including
a transient-voltage suppression (TVS) IC designed specifically to
protect Asynchronous Digital Subscriber Lines (ADSL) from strong
lightning surges, electrostatic discharge (ESD) and other voltage
induced transients.  Unfortunately, that is not why Semtech's stock
rallied today.  Earnings are tomorrow and investors believe they
are going to be favorable.  In fact, the issue reached a 52-week
high on the momentum.

With today's rally, Semtech broke out from a two-month ascending 
triangle on extremely heavy volume.  The previous resistance around
$67.00 now becomes the first line of support and Semtech appears
ready to resume its up-trend.

Action    Month &  Option  Open     Closing  Cost     Monthly
Req'd     Strike   Symbol  Interest Price    Basis    Return

Sell Call MAR 55   QTU CK  41       20.63    52.75     5.6% ***
Sell Call MAR 60   QTU CL  92       16.50    56.88     7.3%

Chart =


VRSN - Verisign  $242.63   *** Technicals Only! ***

Verisign is the leading provider of digital certificate solutions
and infrastructure needed by corporations, government agencies,
trading partners and individuals to conduct trusted, secure
communications and commerce over the Internet, intranets and
extranets using the Internet Protocol.  Their digital certificates
(Digital IDs) provide security in millions of copies of Microsoft's
and Netscape's browsers, as well as tens of thousands of copies of
Web servers and other software applications.  They provide turn-key
and custom solutions needed by many large organizations, such as
DowJones, NationsBank & VISA.

Companies that provide Internet infrastructure continue to dominate
the market and Verisign is a top performer in that group.  The
issue has enjoyed an incredible run in the past year and with the
recent consolidation now complete, VRSN appears poised to continue
higher.  Today's rally to a new all-time high suggests the trend is
back on track and the previous highs near $190-200 should provide
adequate support for any future corrections.

Action    Month &  Option  Open     Closing  Cost     Monthly
Req'd     Strike   Symbol  Interest Price    Basis    Return

Sell Put  MAR 180  QVZ OP  332      1.88    178.12     4.9%
Sell Put  MAR 185  QVZ OQ  68       2.75    182.25     7.1% ***
Sell Put  MAR 190  QVZ OR  82       3.38    186.62     8.6%
Sell Put  MAR 195  QVZ OS  18       4.25    190.75    10.5%

Chart =


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