Option Investor
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Daily Newsletter, Tuesday, 06/20/2000

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The Option Investor Newsletter                   Tuesday 6-20-2000
Copyright 2000, All rights reserved.                        1 of 2
Redistribution in any form strictly prohibited.

Posted online for subscribers at http://www.OptionInvestor.com
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MARKET WRAP  (view in courier font for table alignment)
******************************************************************
       6-20-2000           High     Low     Volume Advance Decline
DOW    10435.20 - 122.60 10561.40 10407.90   923,114k 1,265  1,616
Nasdaq  4013.36 +  23.53  4050.58  3982.23 1,695,145k 1,901  2,082
S&P-100  797.56 -   5.35   803.78   794.08    Totals  3,166  3,698
S&P-500 1475.95 -  10.05  1487.32  1470.18            46.1%  53.9%
$RUT     525.69 +   2.90   526.98   520.75
$TRAN   2662.72 -  17.95  2693.83  2657.93
VIX       23.65 +   0.85    24.29    23.07
Put/Call Ratio       .51
******************************************************************

After All, It's Still Earnings Warning Season

You wouldn't have been able to tell from looking at the Dow 
Jones Industrials, but there was reason to smile over on the 
Nasdaq.  Just like it did for the first time in mid-December, 
the Nasdaq was greeted with praise after closing over the key 
4000 level.  It wasn't easy though.  You had the DJIA exerting 
its force to pull sentiment down and the direction of the 
Nasdaq was noticeably undecided for most of the day.  With 
that said, it still spent almost the entire day to the plus 
side.  Led mostly by some big name winners like BRCM, YHOO, 
INKT, ARBA and BVSN.  Those names sound familiar?  Ahh, it is 
nice to be back near earnings season.  Some of the earnings 
runs are kicking into gear.  In fact, the Nasdaq is now down 
less than 2% on the year.

But, some of the cyclicals and old economy stocks are putting 
pressure on the DJIA.  The Industrials fell by 122 to 10435.  
An earnings warnings from HON on Monday continued to weigh on 
this index as HON fell another 10% today.  IBM, HWP, UTX and the 
big oils also traded lower today.  The oil stocks are dipping 
in fear of the OPEC meeting on Wednesday which may help to limit 
production.  These losers were offset by gains in INTC, MSFT 
and AXP.  Volume was good at 1.02 bln.  The S&P 500 was off 
by 9.72, or just over one-half of one percent.

OK, enough with old stuff, let's go to where the action is.  
The composite was a back and forth story.  I sat at my desk 
watching the market while I worked and seemed to be changing 
my sentiment hourly.  Here we go, time to get out, here we go 
again, oops rolling over.  You get the picture.  But, there 
were a few key indicators that are tough to deny after the 
tape stopped for the day.  First, we closed over 4000.  That is 
quite an accomplishment.  The Nasdaq has now closed positive 
for the fourth straight day.  And it has done this in the face 
of a weak old economy market.  Does this remind you of the 
some story we heard over and over from October to March?  I 
wouldn't mind seeing market conditions like that again.  The 
fact that the Nasdaq has closed above 3900 after two and a half 
weeks of consolidation under that level is also a sign for the 
bulls to charge.  The official close was at 4013.36, up 23.53 
on volume of over 1.65 billion.  Ahh, volume!  Another friend 
from the past.   

Here's a daily Nasdaq chart showing the close back over a key 
psychological level.  On Tuesday's chart below, you can see the 
indecision towards market direction throughout today's session.


 


 

Some of today's market action stemmed from the April Trade 
Deficit which was released this morning.  It came in above the 
expected $29.2 billion at $30.44 billion, but today's number 
did shrink for the first time in four months.  March was also 
upwardly revised.  This caused the dollar to weaken slightly 
against the yen to 105.54.  All in all, it wasn't much of a 
story.  Not like the one you will be hearing about all day 
tomorrow, which is the OPEC meeting.  Oil producers from 
around the world are meeting in Vienna to discuss production 
cuts.  All Americans will have their eyes on this story as 
gasoline prices are hitting records highs across the country.  
August crude jumped $0.86 to $30.50 on Tuesday.  The markets 
will focus on this as well because higher oil can ultimately 
lead to higher production costs and an outbreak of the "I" 
word.  

Broadcom stole the spotlight for big gainers today after it 
was announced they will be added to the S&P 500.  The word came 
before the market open and was good for a nearly $20 gain in 
BRCM.  The more impressive part came as BRCM was able to hold 
those gains to close up $19.28 to $165.88, due in part to a 
strong Semiconductor group today.  This group was lead by both 
BRCM and INTC as Intel's President, Craig Barrett, made bullish 
comments about the outlook for the second half of 2000.  He 
said, "The PC market is very strong right now... It is stronger 
than Intel thought it would be this year."  INTC closed up 
$1.81 to $138.31.

In merger news, France's Vivendi confirmed it was acquiring 
Seagrams in a $40.4 billion dollar deal.  This is the third 
such merger to create a global media giant.  The other two, of 
course, are AOL/Time Warner and CBS/Viacom.  Now that Seagram 
is tied to the price of Vivendi, shares of VO fell by $5.94 
to $58.06.  

Oracle was the big earnings news of the day.  The company 
reported their fourth quarter numbers and beat the street by 
a healthy margin.  They turned in $0.31 cents a share versus 
the First Call estimate of $0.25.  Sales and margins rose in 
what appears to be an extremely solid quarter for the company.  
Needless to say, but ORCL did trade down after-hours.  ORCL 
closed the regular session at $86.03 before declining to $82.19 
after the news.  No big deal some say, as ADBE did the same 
thing last week after their earnings report, only to find its 
stock back at new highs today.  Just a typical post-earnings 
decline, but again, a pattern we have become accustomed to 
over the last couple years.  In reality, I am more comfortable 
trading in these known patterns than fighting against the 
unknown, which we had during April and May.

So I still have to side with the bulls.  Monday's breakout of 
the recent trading range and today's close over 4000 is bullish.  
And I am glad it finally happened, because as you know, I had 
been trying to keep a market neutral stance while the Nasdaq 
consolidated and choose a direction, but have been siding with 
the bulls that an upside move was coming.  There have been two 
basic points that confirm such a bullish position.  First, the 
Fed is likely to stand pat this month for the first time in 
awhile.  It's time to let the rate hikes sink and judge 
their effect.  It wouldn't be prudent to continue raising rates 
without much more concrete evidence then is currently seen.  
Second, earnings are here and the first three big names (CMGI, 
ADBE and ORCL) have proven they have the numbers to back the 
valuations.  These earnings runs are just kicking into gear 
too, as evidenced by Yahoo today.  YHOO typically leads the 
July Internet earnings season and showed a lot of strength on 
Tuesday with increasing volume.  There are similar patterns 
emerging in other stocks as well.

The little voice in my head always has a few negatives to calm 
my "irrational exuberance" though and here they are.  First, 
that darn VIX has found its way down to the lower 20s.  I am 
actually kind of glad to see it there because, once again, it 
used to always hang out at these lower levels, but we still 
need to watch it to gauge whether or not we are nearing the 
top.  At today's close of 23.57, a slight backtrack from Monday, 
I still see more room to dive and don't fear it quite yet.  It 
is when we start to dive under 21 that I will be more hesitant.  
Remember though, last July it spent the first half of the month 
at or under 20.  Second is the already expansive moves of some 
stocks.  It was easy to pick up on an entry for SDLI under $200 
last month, but it is not as easy at $300 plus.  I would be 
cautious on those stocks that have already posted 60-70% gains 
from last month's lows.  That kind of move is so hard to sustain 
(unless your RMBS which seems to trade under an entirely 
different set of rules!).  

Many stocks seem to be selling off a little after the close, 
so keep your eye open for entry points.  The mother of all would 
be the Nasdaq at a bounce off 3900.  My guess is we won't be so 
lucky.  You never know though.  After all, it's still earnings 
warning season for a few more days.


Ryan Nelson
Asst. Editor
  


****************
MARKET SENTIMENT
****************

Will we hold 4k?

Blue chips headed south Tuesday as the Dow got hit for -123 
points while the NASDAQ closed above the infamous 4,000 mark. The 
Dow, which is now just below all of its significant trendlines, 
looks as if the 10k mark is just a stones throw away (or another 
negative pre-release away). Honeywell is the latest company to 
warn of poorer times ahead, and combined with IBM, General 
Motors, and United Technologies, led the Dow down today. The 
NASDAQ, which continues to outperform, ignored its poor acting 
brother and closed in the green. Volume was decent as the NYSE 
traded just over a billion while the NASDAQ traded over 1.6 
billion. The big question that is on our minds is if the NASDAQ 
will hold the 4k mark?
 
On Sunday, we highlighted several companies that were due to 
report their earnings this week, and the two bellwethers that we 
spoke of were Oracle and Micron Technology. Both had whisper 
numbers that were significantly above expectations, and both had 
Pinnacle Indexes that were on the rise. Basically, we highlighted 
how the market was pricing perfection into these two companies’ 
earnings. Well, the beginning of this week stayed true to form, 
as both Oracle and Micron’s Pinnacle Index increased 
dramatically, suggesting rampant call speculating. This exuberant 
optimism may suggest that both of these companies have already 
priced the buy-the-rumor, sell-the-news mentality into them. At 
the time of this writing, Oracle released their earnings, which 
crushed even the highest of expectations. This is good for the 
market, especially when considering how many negative earnings 
warnings we have had recently. But, many of the traders at 
Pinnacle will be extremely interested to see how Oracle fares 
tomorrow, because Micron’s earnings are due Thursday and may 
react the same. We will see if the buy-the-rumor, sell-the-news 
mentality comes into play. And should it be a factor, the NASDAQ 
may not hold 4,000.        


BULLISH Signs: 

Interest Rates (5.896):
With the long bond breaking below the crucial 6% benchmark, fears 
of higher rates may finally be subsiding. 

NASDAQ Short Interest:
As of May 15, the level of short sales not yet closed out, known 
as short interest, climbed 4.80% to 2,780,161,105 shares. Many 
individual equities will continue to show major (and quick) gains 
as stocks get squeezed.


Mixed Signs: 

Volatility Index (23.65):
The VIX has proved that the low 30’s are an excellent buying 
opportunity, and the low 20’s continue to be a great selling 
opportunity. Based solely on the VIX, we are getting close to a 
selling opportunity.

BEARISH Signs:

Slowing Economy:
If the economy is truly slowing down, we will start feeling the 
effects once corporate earnings report over the next couple of 
quarters. This has just occurred as Circuit City, Electronics 
for Imaging, Proctor & Gamble, Lands End, H&R Block, McDonalds, 
Electronic Data Systems, Mylan Labs, Harmonic Lightwave, NBC 
Internet, Wachovia Bank, Perot Systems, Xerox, Gadzoox Networks, 
Honeywell, Computer Sciences Corp., Carnival Cruise Lines, and 
Qualcomm have all warned of poorer times ahead or have had 
earnings cut by analysts.

Liquidity Crunch:
With the fear of inflation, and the most likely scenario of 
several more rate hikes, liquidity in the marketplace will become 
a more significant issue and put more pressure on equities.

IPO Dilution:
$58.6 billion of stock was freed up for trading in March, $67.3 
billion April, and $118.3 billion in May. This is too much 
stock for the system to handle. 
 
Energy Prices:
With the rapid rise in crude oil, everything from manufacturing 
to transportation will be affected by higher costs. These higher 
costs will be felt 1-2 quarters out, and could put pressure on 
profit margins. 


*****************************************************************

The Power of Sentiment Analysis

It has often been said that the crowd is right during the
market trends but wrong at both ends.  Measuring and
evaluating the sentiment of the crowd, therefore, can give
savvy option traders a decided edge.


Pinnacle Index
*****************************************************************
OEX                              Friday       Tues        Thurs
Benchmark                        (6/16)      (6/20)       (6/22)
*****************************************************************
Overhead Resistance (805-825)    10.47       11.29
Overhead Resistance (775-800)     1.38        1.07

OEX Close                       788.74      797.56
 
Underlying Support  (745-770)     1.32        1.44
Underlying Support  (715-740)     4.53        5.56


What the Pinnacle Index is telling us:
Overhead is still strong (805-825), indicating that the potential 
for a major rally in the short term is low. Support is light, so 
if any bad news comes into the market, we could easily retrace.


Put/Call Ratio 
*****************************************************************
                                Friday      Tues       Thurs
Strike/Contracts               (6/16)      (6/20)      (6/22)
*****************************************************************


CBOE Total P/C Ratio            .53         .51 
Equity P/C Ratio                .47         .48
OEX Put/Call Ratio             1.23         .92


Peak Open Interest (OEX)
*****************************************************************
                     Friday          Tues            Thurs
Strike/Contracts     (6/16)         (6/20)           (6/22)
*****************************************************************

Puts                680 / 4,419   700 / 4,934
Calls               800 / 2,669   790 / 4,849
Put/Call Ratio        1.66           1.02



Market Volatility Index (VIX)
*****************************************************************
                    Major
Date                Turning Point       VIX
*****************************************************************
October 97          Bottom              54.60      
July 20, 1998       Top                 16.88         
October 8, 1998     Bottom              60.63
January 11, 1998    Top                 26.38
March 4, 1999       Bottom              28.15   
May 14, 1999        Top                 25.01 
July 16, 1999       Top                 18.13 
August  5, 1999     Bottom              32.12 
October 15, 1999    Bottom              32.06
January 28, 2000    Bottom              29.09
April 14, 2000      Bottom?             39.33

June 20, 2000                           23.65



**************
MARKET POSTURE
**************

As of Market Close - Tuesday, June 20, 2000 

                   Key Benchmarks
Broad Market       Bearish/Bullish  Last    Posture/Since  Alert
****************************************************************

DOW Industrials   10,200  11,400  10,435    Neutral   5.05
SPX S&P 500        1,350   1,500   1,476    Neutral   5.30  
OEX S&P 100          725     800     798    Neutral   5.30 
RUT Russell 2000     450     550     526    Neutral   5.05    
NDX NASD 100       3,000   4,000   3,934    Neutral   5.30 
MSH High Tech        800   1,050   1,043    Neutral   6.06    

XCI Hardware       1,250   1,600   1,573    Neutral   5.30 
CWX Software       1,050   1,300   1,294    Neutral   6.06    
SOX Semiconductor    850   1,200   1,265    BULLISH   6.20  ** 
NWX Networking       900   1,100   1,213    BULLISH   6.02  
INX Internet         500     800     616    Neutral   5.30 

BIX Banking          520     640     538    Neutral   6.09     
XBD Brokerage        450     495     514    BULLISH   6.15      
IUX Insurance        600     650     611    Neutral   6.20  **

RLX Retail           900   1,000     835    BEARISH   6.09  
DRG Drug             355     400     398    Neutral   4.28    
HCX Healthcare       710     800     817    BULLISH   6.15      
XAL Airline          140     155     162    BULLISH   5.25 
OIX Oil & Gas        265     300     309    BULLISH   5.11  
 
Posture Alert    
Technology shares continue to outperform the broad market, as the 
NASDAQ topped the 4,000 mark on good volume Tuesday. Sectors 
leading the charge include Internet (+3.27%) and Semiconductors 
(+2.41%). With this most recent action, we have upped 
Semiconductors to Bullish from Neutral and have lowered Insurance 
to Neutral from Bullish. Currently, there are several sectors at 
key benchmarks, so we will watch closely for either a break to the 
upside or a failed rally.   



**************
TRADERS CORNER
**************

Long-Term Focus = Success
By Austin Passamonte

This Sunday’s OIN article “Exact Instructions” by Jim Brown
is one we should each print out and read every Sunday. If
that fails to cover all bases for success I don’t know what
does. I had read that back when first written and can tell
you it has a lot more meaning to me now than then. 

Jim states that option trading can be get rich, but not rich
quick. I like to say it is a get-rich slow plan. That beats
never getting rich but we’re in danger of losing some readers
here who don’t like where I’m going. If they prefer secret
methods to easy riches there is nothing I have to offer. On
the other hand, my time spent on this side of the monitor is
dedicated to you, the serious student of our trade. Let’s 
proceed.

Austin,
Just read your article (re:Jun Debit Spreads) SORRY TO HEAR
IT!! I wanted to say thanks since the Call side I wrote 
to you about (790/800) entered @ $3.13 and traded out on 
Thursday afternoon at $6.00. Then a short time later I bought
the 785/795 Put spread at $2.50 and sweated Friday but got out
near the close at $6.50. I wanted to sell just the long side 
at 8 or 9 but as it kept dropping I was concerned with my luck 
the 785 would be ITM and I would give it all back so I chickened 
out and traded out of the spread. Again thanks!! It's all in
the interpretation and because of last week I coined the phrase: 
"Timing is money".
Thanks again, Ron C.

No need to thank me Ron - you’re the one who executed your
plan to perfection. Glad to see you enjoyed some 100% & 200%
short-term profits. Feel free to give me YOUR advice this
month!

Yesterday we spoke of discipline to one’s written trading plan.
This month I was the poster-boy for consequences of deviating
from it. The only real losses I’ve taken in two months time 
have been spread plays bought too early on impulse. Didn’t we 
have that conversation here before? I solemnly promise to be 
a good boy next time for sure!

The condensed letter from T.O. yesterday showed excellent
work on preparation. Historical research proved the plan 
highly viable. Hypothetical results were through the roof! We
learned that once theory goes live, all bets are off. A shortcut
here and freelancing there and no more structure exists. 
Commitment to discipline is said easy but done hard.

Let’s talk about historical results. I can’t imagine trying
to develop a trading strategy or confidence without back-
testing. My trading partner Russ Moore from Toronto spent two
days with me last week pouring over charts testing historical
data. It seems we’ve put together a swing trading system that
yields intriguing results but we’ll know for sure when trading 
live. To be honest I’d love to glean just 50% of the hypothetical 
results we logged trading it. 

Without checking the math myself, T.O.’s calculations show an 
incredible return on capital under known conditions via the
Skybox. I’ve seen enough data run from back-testing this to 
know it’s in the ballpark. As I’ve said many times, math is
an exact science... it does not lie but that is true providing
the variables remain constant. 

In the case of Skybox, if you trade it as designed and factor
commissions, stop-loss slippage and the occasional missed
trade hypothetical results will not be matched. My question is,
if you cut that in half would it still be good enough? That’s
how I benchmark whether to trade or pass up a system. You can 
absolutely count on Murphy’s Law to be alive & well when money
is added to the equation. If only 50% of your ideal returns 
are reached will that satisfy you? Pick or pass from there.

If we back-test a system and it proves to be a money maker
over time it’s only fair for us to give it time. We’d all
love to begin at the high point of performance, but that may 
not be the case for you and never happens to me. Expecting to 
extrapolate previous results through our first days or weeks 
into a method is also the norm but again I wouldn’t count on 
that.

Any trading method I’ve ever seen has historical highs and
periods of drawdown. No way around it. I don’t believe we
can accurately guess what next month might offer any more
than which direction the market will head and how far it’ll
go. Can you?

It’s safe to say the previous month was not Skybox’ finest,
but then again what method actually did great in that stale
market? The coming weeks and months ahead may be a bit slow 
or could rock n roll. Past results are no indication of future
performance. My vote is to stay the helm and be poised & ready
for action.

In my opinion the best time to begin a new trading system is
during a quiet spell. No, the account balance doesn’t balloon
on pace with our trading fantasies do but more importantly we 
learn the nuances and work kinks out. It’s easier to begin
driving when surrounding traffic isn’t flying by. We don’t 
hone our skills when times are great and every trade turns to
money. That’s just a mirage which makes us feel good until
challenging times prove reality. We learn to limit losses and
perfect defensive skills when times are tough. Once you’ve 
smoothed your system and gotten comfy making it work either
virtual or real money, you’re ready to kick market butt when
things heat up.

Isn’t that our ultimate goal? Grow our account to massive
size by this time next year? If that’s the case we cannot
realistically expect it to be a steady ascent up the figures
although that remains our subconscious hope. Focus on 
mastering your trading plan and allow it sufficient time 
to perform. 

Having more than one method or tool is a plus as well. I 
like to trade straight calls & puts but happily switch to
debit and credit spreads if that seems appropriate. Don’t
care if the markets move up or down as long as they move
and I happen to be with the flow!

Whether you buy or sell options, trade mechanical or 
subjective really doesn’t matter. The important thing is to 
devise an approach that works for you and stick with it! 
A common mistake traders of all kinds make is to jump from
one system or approach to the next without giving any due
diligence. Odds are that’s a sure way to harvest a solid
string of losses from each method tried, as the dwindling 
balance holds out.

Next Monday I intend to share some observations noticed in
trading Skybox that might be of interest to you. We’ll 
cover ideas that could reduce small losses. Tuesday I’ll
present the basic trading model Russ & I have patched together
complete with our parameters so far. Historical results are
very good for all indexes and to a lesser extent any stock.

Considering OIN readers are the best option traders in the 
world, we’d welcome any suggestions or feedback on how this 
tool could be improved. Please fell free to add your favorite
technical studies and tinker around a bit. I’ll share the
ideas in a future article...no telling what it may offer for
all of us from there.

See you next week and hope you prosper meanwhile!

Contact Support


******

Good Trades and Bad Trades
By Mary Redmond

In the last couple of weeks I made two trades which I think 
are good examples of a great trade and a terrible trade.
Every trader makes mistakes.  The important thing to remember 
is to always cut your losses short.  

I bought Sycamore at $98.75 the week before last for a number
of reasons.  The sector was hot.  The fiber optic networking 
sector was the one of the hottest in the market over the last 
few weeks.  In an environment of earnings warnings and fear of 
an economic slowdown these companies had given the financial 
community indications that their earnings would beat analysts'
expectations.  If you have a great company with great earnings 
in a poorly performing sector then the chances are great that 
your stock and options will perform poorly  on a short term 
basis.  About 75% of the movement of a stock short term can be 
attributed to movement in the sector.

I had been watching the other stocks in the sector, and JDSU,
GLW and several others had all been moving higher.  Since they
are considered industry leaders, I thought Sycamore was poised
to move higher also.  In fact, if you put a chart of JDSU on
top of a chart of SCMR, the two stock trading patterns look 
very similar.   

In my opinion, the Nasdaq was poised to move higher.  The 
consensus among most analysts was that the Fed will not raise
rates on June 27, or if they did raise it would be for the last 
time.  There had been a flood of investors money into the mutual 
funds, and a tremendous amount of cash on the sidelines.  The
Nasdaq had consolidated around 3800 for several weeks, which I 
interpreted as a positive indicator.  Since the Nasdaq had
stopped going down, I thought it was going to start to go up.

SCMR had been consolidating in the $100 level for several days.
It had stayed above the 50 DMA of 89.  When I saw the fast 
stochastic indicator cross the slow stochastic indicator after
converging for several days I decided to buy.  The stock moved
up in increments, from $105 to $110, and then Monday when the
Nasdaq took off it went up to $116.  Since the Nasdaq closed
above 3900 on strong volume I thought there would be a follow
through Tuesday morning.  I sold the stock at $120. 
 
Another trade I did a few weeks ago is an example of what is
probably the worst trade I have ever made and will ever make.
I bought a June $105 Imclone call at $12 when the stock was 
$95.  One of my friends is a doctor who had traded Imclone and  
had never made a mistake on this stock.  He bought in at the 
same time.  The ASCO conference was coming up, and I felt sure 
I would profit.

The following Monday the stock dropped below $90 and the option
dropped to $8.  I refused to sell.  I knew better, and I have
no one but myself to blame.  

Two days later the option was $1.50.  I doubt I will ever trade
short term biotech options again.  We have all heard the rules
many times, but until the worst happens to you it doesn't 
always sink in.  If an option loses over 30% of its value it
will probably lose all of it.  It is hard to admit you made a
mistake.  It's easier to con yourself into believing that the
option will go back up.  The odds in this case are overwhelming
that it won't go back up.

I have a slightly different perspective on leap trading.  For 
example, I have already made over 5 points, or 30% on my NT
Jan 02 70 leaps.  If this were a short term option I would have
sold it.  However, there are a couple of reasons why it may be 
appropriate to hold onto leaps in certain cases.

Leaps usually have a wider spread than short term options.  
You usually have to sell leaps at the bid and buy at the ask.
For this reason, it can be more difficult to trade them daily
as the stock has to make a more substantial move for a leap to
be profitable.  In addition, the simplest reason leaps are 
safer is that the expiration date is one or two years away.
Leaps generally lose time value very slowly until about nine 
months before expiration.  When the leap has less than six
months left to expiration the rate of time decay (theta) 
speeds up, and the leap starts acting like a short term option.   

In addition, the volatility of the stock is a factor to consider.
One of the reasons I have held onto my NT leaps is that the 
stock has shown a consistent pattern of slower, more gradual
increases.  NT usually does not usually jump up or down 10 
or more points in a day unless there is a very dramatic move 
in the market up or down.  For the last week, it has moved up 
on average one or two points in a day.  In these circumstances, 
the stock may not be as susceptible to heavy profit taking as a
more volatile stock which moves up 10 or 20 points in a day.  

Contact Support 



*************
READERS WRITE
*************

Concerning The Sealed Air (SEE) Bear-call Spread in Sunday's
- COMBOS/STRADDLES - section

Hello OIN,

Am I reading this spread correctly?  For a $100.00 investment
(1 contract @.25=$25 + 1@.75=$75) the maximum rate of return
is 15% or, in this case,  $15.? Or does the ROI stand for "Risk 
of Investment" in which case the max downside would be $15. 
Any input would be greatly appreciated.

Thanks
JB

------

Regarding: Credit Spreads

Definitions...

Bull-Put (put-credit) Spread: The bull-put spread consists of
the purchase of one put, and the sale of another put with a higher
strike price. An investor would use this strategy when he believes
that the stock price will remain above the strike price sold at
the end of the strike period. The position will yield a credit and
this is the maximum amount of profit the investor can earn with
this strategy. Because the spread is a "credit" spread, a broker
will require collateral for the transaction.

Bear-Call (call-credit) Spread: The bear-call spread involves 
the purchase of one call (higher strike) and the sale of a lower
strike price call. This spread also produces a credit and the
amount is the maximum profit gained in the play. The spread
remains profitable if the underlying security closes below the
lower strike price and the objective is for both options to expire
worthless. This position requires the same collateral as the
bull-put spread.

Here is more information on the SEE spread...

PLAY (conservative - bearish/credit spread):

BUY  CALL  JUL-65  SEE-GM  OI=348   A=$0.25
SELL CALL  JUL-60  SEE-GL  OI=2683  B=$0.75
INITIAL NET CREDIT TARGET=$0.62  ROI(max)=14%

The options strategy, a bear spread with calls involves the purchase
of one call (higher strike) and the sale of a call with a strike 
price lower than the long call. This is done as a credit spread. 
The amount of profit is determined when the spread is initiated. 
The maximum profit is the amount of the credit. The objective is 
for both options to expire worthless. The spread becomes profitable 
if the underlying security which was sold, closes below the strike 
price. Both options have the same expiration date.

As an example, SEE is trading at $53.81. The SEE July 65 call is
trading at 1/4. The SEE July 60 call is trading at 3/4. The investor
buys the SEE July 65 call at 1/4 and he sells the SEE July 60 call
for 3/4.  (We "target shoot" a 5/8 credit to open the play). Thus, 
he is left with a credit of 1/2. The amount of maximum profit 
is 1/2. The total amount of risk is 4 1/2.

Maximum profit = net amount of the credit received

Maximum risk = difference between the strike prices - net credit 
received

Return on Investment (ROI) = maximum profit / maximum risk

With a bear spread options strategy, the trader is looking for 
price to move sideways or decline. If the price rises, the most 
the trader can lose is predetermined. The greater the maximum 
profit potential, the greater the risk. The further the short 
call is in-the-money, the greater the profit potential. However, 
this carries greater risk as it is more likely the short call will 
close in-the-money. We generally favor short-term, "out-of-the-
money" positions for low risk, conservative returns. Unlike the 
bear spread done with puts, the bear spread done with calls has 
an uncovered short call. That is, the long call is not equal to 
or lower than the sold call. Most brokers will require collateral 
(equity) in the account to cover potential losses.

Remember, the positions in the SPREADS/COMBOS section are simply
candidates to supplement your search for profitable trading 
positions. As with any investment, you must decide if the selections 
meet your criteria for potential plays.  Only you can know what 
strategies are suitable for your skill level, risk-reward tolerance 
and portfolio outlook.  In addition, we recommend that you 
avoid any strategy or technique in which you are not completely 
comfortable with the possible monetary loss, the necessary
adjustments and the common entry-exit strategies.

For more information, read the appropriate chapters in McMillan's 
"Options as a Strategic Investment" and Natenburg's "Option 
Volatility and Pricing", these are two of the bibles of floor 
traders and they may shed some light on the subject of Combinations 
and the appropriate entry/exit/adjustment strategies.

Good Luck! 



*************
SECTOR TRADER
*************

Stunning moves this week for many of our HOLDR plays
By Buzz Lynn
Contact Support


Index             Last    Mon    Tue    Wed    Thu    Fri    Week

QQQ Nasdaq-100    97.63   3.81  -0.25                        3.56
HHH Internet     125.63   1.13   5.63                        6.76
BBH Biotech      176.94   9.75   3.44                       13.19
PPH Pharm         97.56   0.31  -1.94                        1.63
TTH Telecom       78.25   1.56  -0.50                        1.06
IAH I-net Arch    94.75   4.25  -1.00                        3.25
IIH I-net Infr    61.88   3.00   2.88                        5.88
BHH B2B           40.13   0.87   1.13                        2.00
BDH Broadband     90.69   2.81  -0.63                        2.19
SMH Semicon      104.00   6.50   1.50                        8.00

**************
New Plays
**************

IIH - Internet Infrastructure $61.88 +2.88 (+5.88) Not optionable.  
It's back.  Wow that was fast.  After dropping this sector over 
the weekend for trading in a narrowing range last week, we are 
adding it back tonight.  However, that doesn't mean go load up on 
it tomorrow.  Recall that we were figuring on a breakout.  We just 
didn't know the direction.  After yesterday's mid-afternoon move 
above $57.50, it flew on to our radar.  After this morning's move 
over $60 and continued intraday support at $61, all on heavy 
volume, we think this trend can continue. . .but not without first 
retesting $60 or even $57.50 (both its 5-dma and 10-dma) again.  
On the other hand, if it can break cleanly over $63, today's 
intraday high, the next point of resistance would be $68.  Use 
these figures ( $57.50, $60, or $61) for a good target at which to 
shoot.  Otherwise you may want to wait for a move over $63.

Average Daily Volume = 27.74 mln 
/charts/charts.asp?symbol=IIH

**************
Updates
**************

QQQ - NASDAQ 100 $97.63 -0.25 (+3.56) Optionable.  So much for the 
Flat Earth Society.  Chris Columbus, a.k.a. NASDAQ, has discovered 
a New World above 4000.  Correspondingly, QQQ found a breakout at 
$95, which would have been our cue to go long or buy calls.  QQQ 
peaked yesterday at roughly $99.50, well above resistance at 
$97.50.  $97.50 resistance?  Looks like intraday support to us 
now.  At this point, $95 looks like firm support, but feel free to 
target shoot at either level depending on your risk tolerance (the 
10-dma is $94.14).  But first a word of caution.  After peaking 
this morning, QQQ (and the NASDAQ) had trouble regaining this 
morning's highs and showed signs of intraday weakness.  It doesn't 
mean it's rolling over, but it shows the technical formation of an 
"evening star" that might portend a retracement tomorrow.  Wait 
for the entry and avoid the temptation to jump the train leaving 
the station.  Oftentimes, it's the wrong train.  Even so, if you 
have to trade, consider a long position if QQQ moves over $100, or 
a short if it bounces south of $100.

At Support:
BUY CALL JUL- 90 QVQ-GL OI= 2663 at $11.50 SL=8.75
BUY CALL JUL- 95 QVQ-GQ OI= 4209 at $ 7.88 SL=5.75
BUY CALL JUL- 97 QVQ-GS OI=  507 at $ 6.63 SL=4.50

SELL PUT JUL- 90 QVQ-SL OI=13932 at $ 2.19 SL=3.25, Huge OI

At Resistance:
BUY PUT  JUL-100 QVO-SV OI= 1104 at $ 6.13 SL=4.25
BUY PUT  JUL- 96 QVQ-SR OI= 3431 at $ 4.25 SL=2.75

Average Daily Volume = 27.74 mln 
/charts/charts.asp?symbol=QQQ

-----

TTH - Telecom $78.25 -0.50 (+1.06) Not optionable.  With AT&T (T) 
and MCIWorldCom (WCOM) making up a nice chunk of this index, we 
were looking for a rollover at $77-$78, not for BEL and GTE to 
lurch forward on FCC approval of their already announced merger.  
Nonetheless, TTH moved to $78.81 toward yesterday's close.  For 
the brave, this would have made an excellent entry, and good for a 
$2 gain on this morning's open.  Should we consider this a buying 
opportunity?  On reflection, no.  TTH closed near its high of the 
day and again above $78 former resistance, which may become new 
support.  Worse, for the last two days, the 5-dma ($77.78) and the 
10-dma ($77.12) have held up.  We are not trying to make a case 
for going long on this index, however we need to see a fall below 
$78 to get comfortable entering this play on the short side.  We 
still don't think TTH will reach for the stars and will eventually 
roll over.  But until we see it, TTH is on "double secret 
probation".  Until you see the break below $78 and violation of 
the 5-dma and 10-dma, probably safer to stay out.  We'll likely 
drop it Thursday if it doesn't perform as expected.

Average Daily Volume = 27.74 mln 
/charts/charts.asp?symbol=TTH

------

BBH - Biotech $176.94 +3.44 (+13.19) Optionable.  Wahoo!  Are we 
having fun yet?  We were looking for BBH to encounter resistance 
at $164 and that a move over $164 would be our signal to consider 
an entry.  Bullseye!  The breakout came yesterday during the lunch 
hour.  If you entered, congratulations on your fabulous profits, 
especially if you sold at the top of amateur hour this morning 
when BBH traded at $179.  Even if you didn't have a stop set, $172 
provided support from which BBH moved back up.  What's all the 
excitement about?  Celera (CLA, not a huge part of the BBH) will 
soon announce the completion of the sequencing of the human 
genome.  It's an important milestone in which many will try to 
take the credit, but that doesn't mean it will be available for 
commercial use yet.  As The Motley Fool points out, it's a bit 
like the Wright Brothers getting off the ground for 12 seconds in 
1903, but commercial flight wasn't practical until many years 
later.  Even so, it's been great for the sector, and may continue 
to be so until CLA makes its announcement anticipated as early as 
June 26th.  This could truly be a great example of buying the 
rumor, then selling the news.  So don't get caught without a stop 
in place and give back the profit.  In the meantime, target 
shooting at support of $164 (firm), $168 and $172 (intraday) will 
likely yield the best entry.  There's plenty of room to run since 
the next major resistance appears at around $185.  Careful though.  
Having come so far so fast, gravity could take over in a nasty 
round of profit taking.

At support:
BUY CALL JUL-170 BBH-GN OI=1266 at $16.88 SL=12.50
BUY CALL JUL-175 BBH-GO OI= 134 at $14.00 SL=10.50
BUY CALL JUL-180 BBH-GP OI= 369 at $12.00 SL= 9.00

At resistance:
BUY PUT  JUL-185 BBH-TQ OI=   0 at $22.00 SL=15.50
BUY PUT  JUL-180 BBH-TP OI=   0 at $18.88 SL=13.75

Average Daily Volume = 654 K 
/charts/charts.asp?symbol=BBH

------

IAH - Internet Architecture $94.75 -1.00 (+3.25) Not optionable.  
Well, IAH gave us the move over $92 and through solid resistance 
we were looking for in order to make an entry, and away it went 
into the breakout zone.  IAH now has solid resistance at $97, and 
intraday support at $94.  It's doing what we thought it might, but 
with such a big move yesterday and with even the 5-dma way back at 
$92.37.  It's major components, IBM, HWP, SUNW, and CSCO all had a 
rough day.  In short, BBH is a bit extended.  The stochastic bares 
that out.  That's why we'd be happier to see IAH come back to $94 
again before taking a new position.  Otherwise, it may be better 
to wait until it clears $97. 

Average Daily Volume = 71 K 
/charts/charts.asp?symbol=IAH

------

BDH - Broadband $90.69 -0.63 (+2.19) Not optionable.  A nice week 
so far, but a tough day today for the index thanks to the big drag 
by GLW and SDLI (down $9.94 and $19.38, respectively) today.  That 
was to be expected given their recent defiance of gravity.  Don't 
worry though.  These are still strong companies in a strong 
sector.  After a breather, they will be good to go again.  Given 
the whacking these two got, what held the index up?  BRCM did on 
news that they would be added into the S&P 500 to replace GTE, 
which will soon merge with Bell Atlantic.  We simply need to wait 
for an entry to get in it again.    Just like Sunday, former 
resistance of $88.50 should make a good target at which to shoot.  
Otherwise for the more risk tolerant, there is good support at $90 
from today's intraday bounce.  However, $92 may provide mild 
resistance as might $93.50.  After that, the all time high of 
$97.50 becomes the target.

Average Daily Volume = 197 K 
/charts/charts.asp?symbol=BDH


**************
No Play
**************

BHH
HHH
PPH
SMH



*************
DAILY RESULTS
*************

Index      Last      Mon      Tue    Week
Dow    10435.16   108.54  -122.68  -14.14
Nasdaq  4013.36   129.27    23.53  152.80
$OEX     797.56    14.17    -5.35    8.82
$SPX    1475.95    21.54   -10.05   11.49
$RUT     525.69     9.05     2.90   11.95
$TRAN   2662.72     7.48   -17.95  -10.47
$VIX      23.65    -0.75     0.85    0.10

Calls                Mon      Tue    Week

ABGX     137.00     8.50    14.00   22.50  Biotechs moving
AETH     205.19    11.06     8.19   19.25  New, ready to break
RBAK     137.56    17.31     1.25   18.56  Simply amazing
PMCS     199.13     8.94     6.13   15.06  New, looks good
BRCD     159.31    14.50    -0.13   14.38  Held on well
VRSN     175.63     8.94     2.13   11.06  Almost a breakout
HGSI     144.00    13.41    -2.91   10.50  Slight pullback
PDLI     173.00    18.00    -9.00    9.00  Still up for the week
CIEN     153.88    10.75    -2.13    8.63  Recovered late
SEBL     165.03    11.13    -3.16    7.97  Late session pop
MRVC      63.13     5.25     2.50    7.75  Having a good week
YHOO     148.00    -1.88     8.94    7.06  Our favorite is hot!
JDSU     124.88     7.13    -2.44    4.69  Pullback not too bad
ADCT      83.44    -0.81     3.38    2.56  Nice rebound
MSFT      74.94     1.13     1.25    2.38  Made the move to $75
NT        69.50     0.94     0.75    1.69  Looking up
LLTC      70.75     2.44    -1.13    1.31  Slowly but surely
PWR       59.69    -1.38    -1.00   -2.38  Dropped
PLXS     100.13     1.88    -4.38   -2.50  Dropped
GLW      243.31     7.25    -9.94   -2.69  Analyst plays spoiler
NXTL      64.06     0.81    -4.38   -3.56  News snagged this one
SDLI     295.56    15.06   -19.38   -4.31  Watch profits carefully

Puts

HON       35.72    -8.00    -4.53  -12.53  Absolutely perfect
UTX       55.63    -1.50    -1.75   -3.25  Sliding nicely
NKE       35.69    -0.69    -0.88   -1.56  New, no Tiger Woods
FON       60.13     2.44     0.13    2.56  Entry time
DCLK      41.13    -1.44     4.06    2.63  Bounced on news
A         73.63     4.94     5.63   10.56  Dropped, time to go



PICKS WE DROPPED
****************
When we drop a pick it doesn't mean we are recommending a sell
on that play. Many dropped picks go on to be very profitable.
We drop a pick because something happened to change its
profile. News, price, direction, etc. We drop it because we
don't want anyone else starting a new play at that time. 
We have hundreds of new readers with each issue who are
unfamiliar with the previous history for that pick and we
want them to look at any current pick as a valid play.


CALLS:
*****

PWR $59.69 -1.00 (-2.38) PWR lost its momentum early this week in
what appears to be a failed attempt to breakout.  The stock
actually gapped to a new 52-week high Monday morning, but drifted
back down to support at $60.  What's disconcerting is that the
stock failed to participate in the broad sweeping rally Monday
afternoon.  What's more, PWR fell through support at $60 near the
close Tuesday to form a head-and-shoulders top pattern.  There
was no detrimental news to cause the sell-off, just a lack of
interest combined with profit taking.  Given the relative
weakness and poor technical picture it's time to go before we
have to dig ourselves out of a deeper ditch.

PLXS $100.13 -4.38 (-2.50) PLXS participated in the massive Tech
sector rally Tuesday, but not as much as we would have liked.
The stock showed weakness early Monday morning, and struggled to
move higher.  Needham & Co. reiterated its Strong Buy rating on
the stock Tuesday morning and set a $126 price target.  The
upbeat analyst comments gave PLXS a nice lift Tuesday morning,
but the stock ran into resistance at $105, rolled over, and sank
sharply into the close of trading.  The stock's technical
position weakened with the sell-off as PLXS violated its pattern
of higher lows.  We don't want to hang around to see a lower
lows.


PUTS:
*****

A $73.63 +5.63 (+10.63) Sometimes things just don't go your way.  
Our play in Agilent was one of them.  It never really got off the
ground, as the company added $4.56 on Monday and another $5.63. 
Agilent blew through resistance like it wasn't even there, gaining 
17% so far this week.  The company announced it had signed an 
agreement to acquire Anesthesia Recording Inc., a maker of 
networked anesthesia-information systems.  ARI will become part of
Agilent's ailing Healthcare Solutions Group.  The nail in the 
coffin for our play came not only on the better than $10 move, but 
on strong volume of over 8.0 mln shares.  At this point, we will 
simply close the book and move on.

FON $60.13 +0.13 (+2.56)  The beacon of light that shone down on 
the telecommunication stocks cast a ray on FON too.  The share 
price is now above the 5-dma ($59.59).  We're exiting the play 
tonight because we expect the turn in sentiment to lift FON 
above the 10-dma technical, which we consider too bullish for a 
put play.  Additionally it hit the press that Sprint is 
continuing to set telecommunications sales and marketing trends 
with a new Internet sales effort aimed at Website operators.  
It's unfortunate that we only had one good trading opportunity 
to take in some profits on FON (Friday), but it's better to get 
out too soon. 



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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.
The Option Investor Newsletter                   Tuesday 6-20-2000
Copyright 2000, All rights reserved.                        2 of 2
Redistribution in any form strictly prohibited.


********************
PLAY UPDATES - CALLS
********************

RBAK $137.56 +1.25 (+18.56) We said it last week, and we'll say it
again:  This stock is amazing.  Absolutely fantastic.  That basing
period with the ever-so slight incline we mentioned, well, that's 
been left behind.  Monday was rally mode for the markets as RBAK 
opened at $117.81 and soared to close at $135.31.  What a day trade!  
The stock did bump up into $130 resistance, but eventually thwarted 
it to run higher.  Today's activity was less dramatic as RBAK found
support around $132.  Going forward, look for support at this level
as well as $130.  Great entry points if accompanied with a bounce.  
Resistance is at $140.  Yet, RBAK has proven that when it wants to 
go, it rolls right on through.  NASDAQ is going to be the key 
tomorrow to see if it can hold this 4000 close.  Keep this in 
mind.  Remember, this stock can move quick on you, so protect your
profits if the NASDAQ turns south.  

ADCT $83.44 +3.38 (+2.56) As if on cue, ADCT sagged on Monday to 
give a decent entry on this call play.  The stock pretty much 
stuck to the $80 level and should offer support going forward.  
Today, volume was heavier in the morning as buyers drove up the 
stock to test $84.  ADCT was lackadaisical throughout the rest of 
the afternoon, falling back with the surrounding weakness on the
NASDAQ.  Yet, volume picked up towards the last hour and our pick 
was a bucking bull at the close.  ADCT shot up $1.50 in the final
ten minutes of trading.  The overall intraday trading pattern was
encouraging as ADCT crept higher throughout the day.  If support
at $80 doesn't hold, look for entry on a bounce from the 10-dma at
$78.20, which appears to be a reliable entry point.  Conservative
traders may wait for a breakout over the $84 resistance level. 

YHOO $148.00 +8.94 (+7.06) On Monday, we began to question
whether there were going to be enough buyers to drive our favorite
Internet play higher.  The support level at $136 once again proved 
to be a point where the bulls woke up and the bears gave up.  
Finally, this morning Yahoo! broke through the top of the triangle
pattern we mentioned last weekend.  The plus today was the fact 
that YHOO ran up to $150, an area not seen since early April.  The 
next hurdle we see in our path is the 100-dma at $149.66.  Granted 
our play briefly stuck its head above that mark, but we would 
prefer to see a close above $150 on solid volume.  Speaking of 
volume, over 10.2 mln shares were traded today, which certainly
suggests the 6.4% gain could be for real.  If you entered on 
Monday's bounce, congratulations!  We now see support at $146, 
$144 and $140.  With the move today, we would expect the momentum
to continue.  If we do see a brief pullback to support, look for 
opportunities to enter new plays or add to existing positions.  

SDLI $295.56 -19.38 (-4.31) Sometimes it's amazing what an
analyst's comments can do to the price of a company's stock.  
Many times investors pay very little attention to the comments
or reiterations.  That wasn't the case today.  This morning 
the folks at Wit SoundView let the hammer fall on SDLI, Corning
and Digital Island.  They cut their rating from a Strong Buy
to a Buy rating.  The comments went something like, the sector
is overextended and they believe the stocks "will come back to
earth" in the coming months.  They went on to drop SDLI and GLW 
from their Focus List.  Investors focused on selling shares of 
SDLI right from the outset, dropping 6% off the market cap
by day's end.  Interestingly, there was no mention of earnings
or revenues, just that the prices were too high in their opinion.
Late in the session SDL bounced off support at $290 as buyers
began to once again test the waters.  The late day bounce was
encouraging, however, the sellers may not be finished just yet.
We would still look to re-establish long positions on bounces
off the $280 or $290 area, however, be prepared to protect new
plays and profits just in case more bears crawl out of the bushes, 
or any other analysts decide the prices are "still too high."  

HGSI $144.00 -2.91 (+10.50) Our play in HGSI got back on track
yesterday with a gain of about 10%.  Today, traders took some 
money off the table, but not enough to derail our play or
our opinion.  Some analysts this morning suggested the strength
seen in CRA today was casting a bit of a shadow over HGSI and
others in the industry.  Celera is expected to announce it has
sequenced roughly 3 bln DNA letters in the human genetic code.  
While the analysts' assumptions may be correct, it really
appears that today's action may have been simple profit taking.
After running up to $150, sellers came in a dropped HGSI to $140,
where traders once again began to add shares of the genomics 
company to their portfolio.  When considering new plays or adding 
to existing positions, look for continued momentum to the upside, 
or bounces off support near $140 or the $135 area, confirmed with 
solid volume. 

MRVC $63.13 +2.50 (+7.75) A darn nice start this week, if we
do say so ourselves.  Investors added almost 14% to MRVC over the
past two sessions.  Our play climbed to $67 before traders
decided to pull in their horns as well as some profits.  One
thing that was encouraging was just how well MRVC held up as
some of the big boys in the fiber sector were getting hammered.  
No particular news out today, so we believe the follow-through 
seen so far this week has come on the heels of continued 
speculation of a Luminent spin-off.  So how do we approach this 
one?  Keep in mind MRVC began the month under $30, at $27.63.  
In the last three weeks, that equates to a gain of approximately 
128%.  Our play has one major force behind it, and that's momentum,
which could deter any serious profit taking.  It also has good 
support at $62 and $58.  If the near-term view holds, buyers 
should continue to buy shares of MRVC.  Bounces off support should 
also be viewed as an opportunity to participate in our play.  The
volume the past two days also indicates the trend could continue 
as over 8.6 mln shares have change hands.   

SEBL $165.00 -3.19 (+7.94) SEBL traded in a range bound fashion
for the first half of Monday's trading.  But, the latter half of
trading was a screamer.  Once traders decided to rally the
NASDAQ, SEBL took charge after clearing resistance at $158 to
move nearly $10 higher into the close of trading.  SEBL's rally
Monday was fueled after the company announced it had expanded its
alliance with PricewaterhouseCoopers to provide eBusiness
solutions.  SEBL announced a second alliance with JD Edwards
(JDEC) Tuesday, but traders' response was much more muted.  The
stock drifted lower into the afternoon.  But, we saw the same
heavy buying activity in the final ten minutes of trading
Tuesday.  The now familiar late day rally carried SEBL $7 higher
with a surge in volume.  From here, consider an entry at current
levels given the late day rally, or wait for SEBL to clear $170
for an entry with less risk.  Watch the action in the final
moments of trading to see if the big buying continues.

JDSU $124.88 -2.44 (+4.69) JDSU took the cue from the Tech sector
Monday and leapt into rally mode, clearing resistance at $125
along the way.  The lights went out on the fiber optic group
Tuesday after Wit SoundView downgraded several leading stocks
such as GLW and SDLI.  In a paradoxical fashion, the same
brokerage house reiterated its Strong Buy rating on JDSU.
Despite the analyst's contradictory stance, the weakness in the
sector caused JDSU to rollover, back below resistance at $125.
JDSU did manage to find support at $123 Tuesday, and muster a
late day rally, but fell short of clearing $125.  Watch closely
in the coming days to see if JDSU can hurdle $125.  A more
conservative entry point may be found if the stock can clear
resistance at $128.  JDSU's analyst meeting is scheduled to take
place Thursday, and might be the catalyst we need.  If the
weakness in the fiber optic group continues, watch for JDSU to
find support at $120, and consider entry if the stock bounces.

CIEN $154.13 -1.88 (+8.88) After stumbling early in the day,
CIEN joined the party Monday by surging past the pesky $145
resistance level and sailing into the close of trading.  But, the
same ailment that cursed several of our other call plays also
took its toll on CIEN Tuesday.  Kevin Slocum, Wit SoundView
Telecom analyst, sent a cold chill through the Tech sector
Tuesday by downgrading several optical networking manufacturers.
While Slocum felt GLW and SDLI were worthy of downgrades, he felt
CIEN still warranted his Strong Buy rating.  Despite his
reiteration on CIEN, Slocum's actions were too overwhelming for
traders Tuesday as they took the entire fiber optic group lower.
If CIEN continues to slide, watch for a bounce off support at
$150 for a possible entry.  However, if the fiber optic plays
regain their footing, look for an entry if CIEN clears resistance
at $155.  A more conservative reader might wait for CIEN to clear
resistance at $160 before entering a new play.

GLW $243.31 -9.94 (-2.69) After staging an impressive rally to
yet another new 52-week high Monday, GLW took it on the chin
Tuesday after Wit SoundView lowered its rating on the stock to a
Buy from Strong Buy.  Along with GLW, analysts downgraded SDLI
and DIGL, and justified their actions by citing the overextension
in the fiber optic group.  Despite the downgrade, we're holding
tight.  With superior fundamental growth prospects and demand for
optical networking equipment doubling every six months, GLW has
room to expand.  After gapping down Tuesday morning, GLW settled
into a trading range between $240 - $245.  After the fallout from
the downgrade has been absorbed, watch for the momentum to return
to the fiber optic stocks in the coming days, and consider
an entry if GLW clears its range at $245.  A more conservative
entry might be found if GLW can rally above $250.  After the gap
down Tuesday morning, there is very little resistance directly
above that level.

ABGX $137.50 +14.50 (+23.00) The Biotech sector shined brightly
in the last two days, carrying ABGX higher.  While there were no
specific developments or news items Monday, broad enthusiasm for
genomic issues spread through the group and lifted the sector
higher.  And investors' enthusiasm was further fueled Tuesday
when the Wall Street Journal reported that Celera (CRA) planned
to announce a rough draft of the Human Genome next week.  The
building bullishness in the Biotech sector propelled ABGX past
resistance at $123 Monday afternoon, and the momentum increased
Tuesday after ABGX cleared yet another resistance level at $130.
Volume surged in the final hour of trading Tuesday as ABGX closed
near its day high.  Going forward, ABGX will face congestion
above current levels, not seen since last March.  An aggressive
trader might consider entry at current levels if the momentum
continues while a conservative trader might wait for ABGX to
clear $145.  If the profit takers return from their absence,
watch for ABGX to bounce off support at $130.

BRCD $159.31 -0.13 (+14.38) Everybody loves a breakout, and
that is exactly what BRCD gave us this week.  As the NASDAQ
moved through the long-awaited 3900 level on Monday, investors
finally put their money to work in BRCD, driving the volume 30%
above the ADV with a surge into the close.  Shattering the $145
resistance level was like touching a lit match to gasoline as
the buyers piled on, driving the price above $160, and closing
the session very near that level.  The enthusiasm extended into
trading this morning, but $164.56 was as far as it could go
before the inevitable profit taking.  After pulling back to
find support near $152 (another entry point), buying interest
returned and the stock then spent the rest of the day
consolidating above $155.  Today EMC gave its interoperability
stamp of approval to BRCD’s SilkWorm family of Fibre Channel
switches for use in Storage Area Networks (SANs).  Positive
news like this and continuing health in the Networking sector
should continue to drive shares of BRCD higher as July earnings
approach.  Aggressive investors can use intraday dips to support
between $152-155 as opportunities to enter the play.  If you’d
rather have confirmation first, wait for the momentum to return,
driving the share price back above $160, before playing.

LLTC $70.75 -1.13 (+1.31) Chanting “I think I can” seemed to do
the trick as LLTC managed a nice breakout through the $70
resistance level yesterday.  Volume was still light, but 3.3
million shares was enough to get the job done.  The
Semiconductors put in a nice move over the past 2 days, and
LLTC went along for the ride.  The NASDAQ just couldn’t
overcome the drag of the DJIA, and this lack of conviction
kept LLTC from moving higher today.  After allowing the price
to drop below $69 today, buyers re-emerged near the close and
drove LLTC back above $70, keeping alive the pattern of higher
highs and higher lows that began 2 weeks ago.  Support is
firming near $68, which is sandwiched between the 10-dma ($67)
and the 5-dma ($69).  Consider new entries as LLTC bounces
from support, but watch out for the light volume.  This is a
momentum play and without strong volume, it is hard to sustain
the momentum.  More conservative players will wait for the
return of volume to propel shares to new highs (above $71)
before playing.

NT $69.50 +0.75 (+2.13) Going about its business quietly, NT
continued its steady ascent yesterday, as it crept up on its
March highs near $72.  Continuing higher at the open today, it
looked like a new high might be in the offing as buyers pushed
the price through $70.  Alas, it wasn’t to be.  The market
strength just wasn’t there, and the stock fell back to
consolidate just above Monday’s close of $68.75.  Volume has
been slightly higher than the ADV of 10 million shares both
days this week, and the bulk of the action is coming on upward
moves in price.  NT is continuing to distance itself from its
5-dma (currently at $67.44), and all the other moving averages
are falling further behind the daily closes.  The stock hasn’t
had a down day in well over a week, so a little consolidation
is a good thing.  The stairstep pattern over the past week has
set up support at $68, $66, and $65, backed up by the ascending
10-dma at $63.75.  Wait for support to firm, and then jump
aboard as the buying volume increases, confirming the return
of upward momentum.  In the news today, UBS Warburg added NT to
the firm’s “Global Tech Focus List” with a Buy rating, and said
the outlook for NT’s optics and wireless business appears very
robust.

VRSN $175.63 +2.13 (+11.06) Almost a breakout.  After one final
bounce near $160 yesterday, VRSN headed higher on strong volume,
and continued the move this morning on the back of the NASDAQ’s
strength.  By this afternoon, the DJIA was creating too much of
a drag and VRSN again followed the NASDAQ, but south this time.
The high of the day, $183, represented a move above the $180
resistance level, but there was nothing to keep the stock afloat
and it spent the afternoon trending lower.  Tenuous support
exists at $175, just below today’s close, but if the markets
turn south, it could require a retest of support at $170, or
even $160 before heading higher.  Volume has been gradually
increasing over the past 2 days, with slightly more than the
daily average number of shares trading hands today.  Look for
volume to confirm a bounce from support and use this as your
signal to initiate new positions.  More timid investors will
wait for a convincing breakout above $180 before playing.

NXTL $64.06 -4.38 (-3.56) A bit of a news snag and pressure from 
the DOW brought NXTL down a few points in today's session.  
Nextel is under legal scrutiny and may be sued by 300+ current 
and former employees who claim they were withheld raises and 
promotions based on race and gender.  According to Invesco Funds 
Group analyst Donna Jaegers, Nextel is likely to nip the issue 
in the bud and resolve any discrimination problems that might 
exist.  The complainants are not only asking for a change in 
company practices, but also a financial settlement estimated at 
about $2 bln.  This news event appears to have had minimal 
effects.  Nextel held a higher than expected support level amid 
the downdraft.  It bounced nicely off its intraday low of $61.50 
and reclaimed a position at the shorter-term support of $63 to 
$64.  Yesterday's performance was quite good as well.  The 
trading session offered entry points in the $64 vicinity before 
shooting upwards to $68.53, cutting through Friday's resistance 
by a fraction.  Without a further pullback to $60 or $61.50, you 
can look for entries off the current level.  Confirm the uptrend 
first and pay attention to the overall tech sector for 
direction.  New readers, this is a pure momentum play coming off 
the company's recent 2:1 stock split.   In other news today, 
Nextel Online launched its Two-Way Messaging service that 
enables customers to send, receive and respond to text messages 
using their Internet-capable Nextel Plus phones.

PDLI $173.00 -9.00 (+9.00) Yahoo! No this isn't an Internet, but 
WOW! can it move.  PDLI pumped up the biotech's velocity on 
Monday with an $18, or 11% increase.  The AMEX biotechnology 
index ($BTK) also added a strapping 3.2% to its daily gains.  
PDLI penetrated the formidable resistance at $165 like a hot 
knife slices through butter.  The increasing volume sent it over 
the $180 horizon for a strong finish at $183, just a point away 
from the intraday peak.  During amateur hour this morning, PDLI 
saw a break through that new opposition; however the profit 
takers and pressure from the DOW Industrials hampered any 
further advances in the session.  But don't despair, there was a 
silver lining.  PDLI is evolving a new short-term support level 
at $173-$176.  This development hints that the stock can hold 
theses higher share prices and breakout again.  Be patient for 
entries.  This higher risk momentum play needs your undivided 
attention. 

MSFT $74.94 +1.25 (+2.38) MSFT shares are taking the court's 
decisions in stride - whether they're favorable or not.  At this 
point in time, everyone already knows what the worst can bring:  
a breakup of the software giant into two separate entities.  
Plus, in our opinion anyway, the share price found a bottom near 
$65.  So in many ways, all the cards are on the table.  The 
initial concern, from a technical perspective, was the point of 
strong resistance at Friday's close.  This mark was a sharp 
thorn in the side ever since the stock's utter destruction last 
April - but no more!  On Monday, MSFT rallied along with the 
other techs and on its own good news.  The share price bounded 
through $73 to break the time-held barrier and bullishly closed 
near its daily peak.  While yesterday's news is old stuff in our 
fast-paced world, let me reiterate.  The US Court of appeals 
denied a motion by the Department of Justice to dismiss 
Microsoft's motion for a stay of restrictions and furthermore it 
would suspend a schedule for filings on the stay request if 
Judge Thomas Penfield Jackson asked the Supreme Court to hear the 
case immediately.  Then the word came today that US District 
Judge Thomas Penfield Jackson was indeed sending the case 
directly to the Supreme Court for consideration, bypassing a 
federal appeals court where the company preferred to go next.  
But in a surprising twist, he also granted Microsoft a stay, or 
freeze, of the rigid conduct remedies he imposed until the 
higher court rules.  The "remedies" were set to take effect of 
September 5th.  So again, while MSFT continues to make the 
headlines its share price is recovery and that's the basis of 
our play.  Conservative entries can be found on upward moves 
from the current level or the 5-dma ($72.81) or target shoot on 
dips at firmer support of $70 near the 10-dma ($70.70), if 
available. 



*******************
PLAY UPDATES - PUTS
*******************

UTX $55.63 -1.75 (-3.25) Ok, so we have good news and better
news for our UTX play.  First it began the week with a nice
move lower, mostly on the heels of the events surrounding
Honeywell.  Remember it was just last week that First Union
Securities initiated coverage of UTX with a Strong Buy rating.
What a difference a few days can make.  Given the warning from
HON and the downgrades that followed, our play may be in for a
slide to levels not seen since early March.  That's the best
news our play could have received.  UTX continued to distance
itself from its 200-dma at 58.06 as it lost another 3% on strong
volume of 2.7 million shares.  The only fly in the ointment we
see at this point, is the support that came into play near the
$55 area.  Back in the middle of March, UTX consolidated in 
around $55 before moving higher.  UTX could find some buyers
lurking in the bushes that believe it's a "Strong Buy" at these
lower levels.  Given the turn of events yesterday and today
that may be unlikely.  If we do see a bounce up to resistance
near $57.50, followed by weakness we would look to initiate
new plays.  If you have open positions move your stops down.

DCLK $41.13 +4.06 (+2.63) Looking like an entry point, DCLK
moved up nicely over the past 2 days, supported by the strength
on the NASDAQ and in the Internet sector.  DCLK went along for
the ride, not pausing until hitting resistance at $42.  Buying
volume has been strong, topping double the ADV today. 
Fortunately, DCLK rolled over when it hit resistance today, and
this could be the entry point we’ve been waiting for.  The
privacy concerns that have plagued the company for most of the
year have not gone away, and without the enthusiasm that
affected the sector for the first part of the week, DCLK will
likely head lower once again.  Intraday support materialized
near $41, and if the decline is going to continue, we need to
see the selling volume increase, pushing the price down through
the $40 support level.  Consider new entries as the stock
continues lower or wait for another downward bounce from
resistance.  Stand aside if continued strong buying pushes the
price through the next level of resistance at $45.  This is
above the 10-dma at $43.50 and would be indicative of  a change
in the trend.

HON $36.00 -4.25 (-12.75) And Score!  A simple sector play 
driven by investor rotation further chastised by an expected 2Q 
earnings shortfall equals devastation.  The additional lashings 
from analysts put the cherry on our play.  On Monday Honeywell 
announced its earnings would, for the second consecutive 
quarter, lag behind the estimates.  The warning of numbers 
coming in at $0.73 to $0.77 p/s versus First Call estimates of 
$0.78 sent shares of HON tumbling 17%, or $8.25 by the end of 
the day -  even a halt in trading couldn't slow down the 
freefall.  Volume was ten times the normal ADV!  The company is 
expected to report its official results near the end of next 
month.  However Honeywell is holding a special analyst meeting 
on July 10th to further discuss the effect of the unexpected 
aerospace parts shortages, higher raw material prices and higher 
interest rates it says is responsible for the shortfall.  The 
share price continued to languish in today's session setting 
another new 52-week low.  The all-time record now stands at 
$35.13!  Well I guess that qualifies for extra points.  In 
Sunday's write-up our goal was for moves to $45, then a show of 
downward momentum to $40!  The downgrades by analysts following 
the earnings' warning certainly played into the scenario too.  
Prudential cut HON down to a Hold from a Strong Buy and Salomon 
Smith Barney said the stock "would be dead money for the next 
few quarters" and downgraded its rating on HON to an Outperform 
from Buy.  Investor confidence is shaken too; especially since 
just two weeks ago CEO Michael Bonsignore said his company would 
meet forecasts.  "A lot of people are very upset and want to see 
a management change" said Stewart Kalter of Global Capital 
Markets, who cut his rating to Market Perform from Buy.  Allen 
Ashcroft of Allied Investment Advisors, which owns several 
hundred thousand Honeywell shares concurred - "it's all a matter 
of management credibility".  Granted it's not a pretty picture.  
HON has no support below.  But keep in mind, the question of how 
far can it fall is prevalent.  Use stops to protect the profits 
and confirm definitive downward moves from the current level 
before starting new positions.



**************
NEW CALL PLAYS 
**************

AETH - Aether Systems, Inc. $205.19 +8.19 (+19.25 this week)

Aether Systems, Inc., is a leading provider of wireless and 
mobile data services allowing real-time communications and 
transactions across a full range of devices and networks. 
Using its engineering expertise, its Aether Intelligent 
Messaging (AIM) software platform, its ScoutWare family 
of products and its customer service and network operations 
center, Aether Systems is a one-stop source for corporations 
seeking comprehensive, technology-independent wireless and 
mobile computing solutions. Aether's wireless and mobile 
data services can increase efficiency and productivity 
for companies in a wide variety of industries, including: 
financial services; transportation logistics; health care 
and field sales.

Did someone give this stock a cup of coffee?  It suddenly 
awoke from a sleepy slumber yesterday and is showing good
signs of breaking out of its base.  AETH is not for the faint
of heart, it’s expensive and it’s volatile.  Also worth
mentioning is the small float of shares, only 8 mln.  This is 
the stuff of which volatility is made, but it goes both ways.
Ahh, an option trader's dream.  Having bounced off its 10-dma 
for the better part of the preceding week, there is now 
increasing volume and symptoms of a breakout forming.  Strong 
support can be found in the low $190s, which would provide a good
entry point.  Yesterday began in the red, but then AETH exploded 
with the rest of the NASDAQ in frenzied buying, finishing up 
$11.25.  Today, a less stellar day for the market, the stock
was still able to manage a 4% gain.  It climbed to its high 
of the day at $212 by mid-session, but fell back with the rest of 
the broader market in the following hour.  There should be a lot
of room for this play to run.  AETH was no exception to the Spring
selloff as it had lofty valuations, upwards of $345, so there's
plenty of potential upside.  We would anticipate that the next 
significant mark of resistance would be at about $240.  Watch for
intraday trading patterns for resistance.  After a good basing 
period, AETH looks poised to move higher, especially if the NASDAQ 
summer rally is for real.

Aether has entered into several pacts for wireless services
and yesterday announced new application hosting and development 
capabilities that allow for the rapid deployment of wireless web
services using eXtensible Markup Language (XML).

BUY CALL JUL-200 HEX-GT OI= 460 at $26.25 SL=20.50
BUY CALL JUL-210*EHU-GB OI=  96 at $21.75 SL=17.00
BUY CALL JUL-220 EHU-GD OI= 114 at $17.75 SL=13.75
BUY CALL AUG-220 EHU-HD OI=  62 at $30.38 SL=23.50

Picked on June 20th at $205.19     PE = 128
Change since picked      +0.00     52-week high=$345.00
Analysts Ratings     6-3-0-0-0     52-week low =$ 16.00	
Last earnings 4/26  est= -1.14     actual= -1.13
Next earnings 7/26  est= -2.78     versus= N/A
Average Daily Volume  =  1.36M
/charts/charts.asp?symbol=AETH


PMCS - PMC Sierra Inc $199.13 +6.13 (+15.06 this week)

PMC-Sierra provides customers with Internetworking semiconductor 
system solutions for high speed transmission and networking 
systems that enable the restructuring of the global 
telecommunications and data communications infrastructure.  
Basically the company is a designer of chips for communications 
and networking equipment.  They make asynchronous transfer mode 
(ATM), Ethernet, and other devices that are primarily used in 
LANs and WANs for switching and high-speed transmission.  Some 
of PMC-Sierra's customers include other network equipment 
manufacturers such as 3Com, Cisco Systems, and Lucent 
Technologies.

PMCS is a major player in the "Broadband Revolution."  This 
semiconductor maker for the high-speed communications market is 
a leader in one of the hottest sectors out there.  Broadcom Corp 
(BRCM) is also setting the pace in the industry, but at the 
moment there's a big difference between the two.  Right from the 
get-go we've a split candidate in our midst.  Since June 2nd, 
PMCS has been trading above its historical split-level of $170.  
And of the utmost importance is the recent approval by 
its shareholders to increase in the number of authorized shares 
to 900 mln; thus clearing the avenue for a stock dividend.  The 
Annual Meeting was held last week on June 15th.  Karl Motey at 
CE Unterberg Towbin reiterated a Strong Buy recommendation in 
response to the news.  The earnings report, which is expected 
around July 13th, could be the trigger for a split announcement 
as it was for the company's last two split announcements.  So 
in essence, we've got a potential earnings' run that could 
really get pumped up by split excitement.  Today's strong 
breakout of the $175-$195 trading channel is a great sign of 
more to come and prompted us to add PMCS to our call list.  Look 
for the share price to maintain this new level.  Old resistance 
at $195 should begin to develop as a near-term support.  And if 
you like to target shoot intraday, then try for dips near the 
5-dma, currently at $189.99 for an entry. 

Last week PMC-Sierra acquired the rest of closely held Malleable 
Technologies for $229.3 mln in stock.  The 1.25 mln shares net 
PMCS access to chips that can easily handle voice traffic.

BUY CALL JUL-195 SZI-GS OI= 577 at $21.25 SL=15.50
BUY CALL JUL-200 SZI-GT OI= 747 at $19.00 SL=13.75
BUY CALL JUL-210*SZI-GB OI=3516 at $14.75 SL=11.00
BUY CALL AUG-210 SZI-HB OI= 195 at $23.75 SL=18.50

Picked on June 20th at  $199.13    P/E = 309
Change since picked       +0.00    52-week high=$255.50
Analysts Ratings     15-8-1-0-0    52-week low =$ 27.66
Last earnings 03/00   est= 0.16    actual= 0.17
Next earnings 07-13   est= 0.19    versus= 0.11
Average Daily Volume = 6.57 mln
/charts/charts.asp?symbol=PMCS



*************
NEW PUT PLAYS 
*************

NKE - NIKE Inc. $35.69 -0.88 (-1.56 this week)

NIKE is the world's #1 shoe company and controls more than 45% of
the US athletic shoe market.  The company designs and sells shoes
for just about every sport.  NIKE also sells Cole Haan dress and
casual shoes and a line of athletic wear and equipment.  In
addition, it operates NIKETOWN shoe and sportswear stores.  The
company sells its products to about 20,000 US accounts, in about
110 other countries, and on the Internet.

NKE just can't do it!  Unlike Tiger's golf game, NKE hasn't been
up to par lately.  An influential Goldman Sachs analyst got the
NKE ball rolling downhill about two weeks ago.  Margaret Mager,
Goldman's Retail sector analyst, warned investors that the
outlook for NKE was far from rosy.  In fact, Mager cited several
independent events that could have a negative impact on the
stock.  Most importantly, investors have turned away from the
Retail sector as a whole, as the threats of a slowing economy and
rising interest rates dampen revenue growth of leading retailers.
It remains to be seen how rising money costs and a bear market
will ultimately affect consumers' buying trends.  Wall Street is
cautious as several brokerages have lowered their sales forecasts
on many companies within the group, including NKE.  Also, NKE has
been spending exorbitant amounts of money on marketing and
advertising expenses for the 2000 Summer Olympics.  Analysts
point out that NKE won't reap the rewards for its marketing costs
for several more months.  While there are several fundamental
factors weighing on NKE, the stock's technical picture is
worsening.  NKE had been trading between $40 - $45 for over two
months, but just recently fell below the lower end of its range.
The stock is in a defined downtrend, and has been facing
resistance at its descending 5-dma, currently at $37.45.  Wait
for NKE to fall through support just below at $35 before entering
the play.  If NKE bounces look for the stock to run into
resistance at its 5-dma, where an aggressive trader might target
shoot for an entry point.

BUY PUT JUL-40 NKE-SH OI= 788 at $5.63 SL=3.50
BUY PUT JUL-35*NKE-SG OI= 437 at $2.44 SL=1.25 
BUY PUT JUL-30 NKE-SF OI=1063 at $0.75 SL=0.00 

Average Daily Volume = 1.11 mln
/charts/charts.asp?symbol=NKE



**********************
PLAY OF THE DAY - CALL
**********************

YHOO - Yahoo! Inc. $148.00 +8.94 (+7.06 this week)

Yahoo! Inc. is a global Internet communications, commerce and
media company that offers a comprehensive branded network of
services to more than 145 million individuals each month 
worldwide.  As the first online navigational guide to the Web,
www.yahoo.com is the leading guide in terms of traffic,
advertising, household and business user reach, and is one of
the most recognized brands associated with the Internet.  The
company also provides online business services designed to
enhance the Web presence of Yahoo!'s clients, including audio
and video streaming, store hosting and management, and Web
site tools and services.  The company's global Web network
includes 22 local World properties outside the United States.
 
Most Recent Write-Up

On Monday, we began to question whether there were going to be 
enough buyers to drive our favorite Internet play higher.  The 
support level at $136 once again proved to be a point where the 
bulls woke up and the bears gave up.  Finally, this morning Yahoo!
broke through the top of the triangle pattern we mentioned last 
weekend.  The plus today was the fact that YHOO ran up to $150, an 
area not seen since early April.  The next hurdle we see in our 
path is the 100-dma at $149.66.  Granted our play briefly stuck 
its head above that mark, but we would prefer to see a close above 
$150 on solid volume.  Speaking of volume, over 10.2 mln shares 
were traded today, which certainly suggests the 6.4% gain could be 
for real.  If you entered on Monday's bounce, congratulations!  We 
now see support at $146, $144 and $140.  With the move today, we 
would expect the momentum to continue.  If we do see a brief 
pullback to support, look for opportunities to enter new plays or 
add to existing positions.  
 
Comments

A preemptive earnings run very well may be underway.  If the 
NASDAQ gets heated up and this summer rally comes to fruition,
Internet favorite YHOO certainly will lead the charge.  YHOO
has been a slower mover as of late, so today's strength is 
welcomed and long overdue.  

BUY CALL JUL-140 YMM-GH OI=6346 at $17.00 SL=13.25
BUY CALL JUL-145 YMM-GI OI=4584 at $14.25 SL=11.00
BUY CALL JUL-150*YMM-GJ OI=6259 at $11.88 SL= 9.25
BUY CALL JUL-155 YUU-GK OI=1877 at $ 9.63 SL= 7.50

SELL PUT JUL-140 YMM-SH OI=6213 at $ 7.88 SL=10.25
(See risks of selling puts in play legend)

Picked on May 28th at   $112.06    PE = 641
Change since picked      +35.94    52 week high=$250.06
Analysts Ratings    16-14-3-0-0    52 week low =$ 55.00
Last earnings 04/00   est= 0.09    actual= 0.10 
Next earnings 07-11   est= 0.10    versus= 0.05
Average daily volume = 10.1 mln
/charts/charts.asp?symbol=YHOO



************************
COMBOS/SPREADS/STRADDLES
************************

Inflation concerns rule the market...

Monday, June 19

Industrial stocks posted enjoyed big gains today amid a recovery
in the financial sector.  The Dow closed up 108 points at 10,557.
The Nasdaq Composite rallied on strong gains in biotech and chip
stocks, closing up 129 points at 2989.  The S&P 500 Index was up
21 points at 1486.  Trading volume on the NYSE hit 932 million
shares with advances beating declines 1,507 to 1,366.  Volume on
the Nasdaq reached 1.41 billion shares and advances beat declines
2,054 to 1,896.  In the bond market, the 30-year Treasury ended
down 6/32, pushing its yield up to 5.88%.


Sunday's new plays (positions/opening prices/strategy):

AM/FM        AFM    JUL60C/JUL65C   $0.43   credit   bull-put
Sealed Air   SEE    JUL65C/JUL60C   $0.43   credit   bull-call
Tektronix    TEK    JUL45P/JUL50P   $0.38   credit   bull-put
Immunex      IMNX   SEP35C/JUL45C   $8.88   debit    diagonal

There was little opportunity to participate in our new positions
today.  Tektronix gapped higher at the open and there was only
a brief period to achieve a credit in the spread.  AM/FM traded
in a small range allowing little chance for a favorable entry.
Sealed Air moved lower throughout the session and the observed
premium was lower than our target.  Immunex was the only issue
that cooperated, slumping early in the day and thus providing a
a perfect opportunity to open the bullish diagonal spread.
  

Portfolio plays:

Stocks ended higher today as traders focused on bullish forecasts
from the technology sector.  Although investors continue to worry
about the impact of a slowing economy on corporate earnings, most
are expecting relatively few negative pre-announcements.  Goldman
Sachs strategist Abby Joseph Cohen said corporate revenues in the
remaining quarters of 2000 will be good and the outlook for the
broad market is bullish in the long term.  On the Dow, financial
stocks recovered nicely after a recent dismal performance and
drug, retail, and airline issues also advanced.  On the downside,
Gold stocks fell and Oil issues slumped as crude oil slipped to
$31.69 per barrel on expectation that OPEC will vote to increase
production at its meeting this week.  Meanwhile, the Nasdaq moved
above technical resistance to close at its highest level since
early April.  Chip stocks were particularly strong and Biotech
issues also advanced.  Internet stocks posted slim gains despite
another Barron's article which suggested that many web companies
are in danger of bankruptcy.  In the broader market, investment
management and media stocks advanced while textiles, gaming and
manufacturing issues all slumped.

The majority of our portfolio issues moved higher but despite the
bullish activity, caution is in order as the rally came on thin
volume and weak breadth.  The top performer was Sepracor (SEPR),
which vaulted $11 to $118.50 after the company announced that it
has successfully completed a Phase II trial of (S)-oxybutynin for
the treatment of urge urinary incontinence.  The multi-arm study
was designed to select the optimal dose for the upcoming program,
which will utilize an extended release formulation.  The results
of the study confirm that (S)-oxybutynin significantly improved
both urinary frequency and urinary incontinence while being well
tolerated.  Out long-term position is at maximum profit above $100
but we will need to adjust the spread higher to maintain upside
potential if the rally continues.  Macromedia (MACR) rose $6 to
$108 amid strength in Internet Software issues and the rally was
boosted by news that MACR and Business Objects (BOBJ) will enter
a strategic partnership for web site analysis.  Our credit spread
has a cost basis of $69.38.  Active Software (ASWX) also rallied
during the upside activity in the group, rising $6 to $67.  The
downside break-even for this position is $54.25.  Cv Therapeutics
(CVTX), Exodus (EXDS), and Integrated Silicon Solutions (ISSI)
were the other portfolio leaders.

In the long-term category, Aetna (AET) tumbled to $68 after the
company disclosed that exclusive talks with ING Group (ING) had
collapsed.  The Dutch insurer said Sunday that it and Aetna ended
discussions for ING Group to acquire Aetna's financial services
and international units, after the two companies couldn't agree
on a price that would be acceptable to ING stockholders.  ING's
announcement followed a statement that Aetna officials made on
Friday, which said the company was negotiating the sale of its
financial services and international units with other possible
buyers.  Our (Covered-calls with LEAPS) position has excellent,
long-term potential and we do not believe this decision will have
a permanent affect on the issue.


Tuesday, June 20

Equity markets ended mixed today as investors searched for
direction ahead of next week’s FOMC meeting.  Technology stocks
posted slim gains with the Nasdaq closing up 23 points at 4013.
Industrial issues slumped, pulling the Dow 122 points lower to
10,435.  The S&P 500 Index ended down 9 points at 1476.  Volume
on the NYSE reached 1.03 billion shares with declines beating
advances 1,628 to 1,264.  Trading activity on the Nasdaq was
moderate with 1.6 billion shares exchanged.  Declines outpaced
advances 2,090 to 1,905.  In the bond market, the U.S. 30-year
Treasury was down 1/32, pushing its yield up to 5.89%.


Portfolio Plays:

Blue-chip stocks slipped today amid losses in the retail and
drug sectors.  Honeywell (HON), Exxon Mobil (XOM), General
Motors (GM), and Merck (MRK) led the Dow lower.  In the broader
market, oil issues consolidated after last week’s big rally and
financial stocks slumped on profit-taking.  In contrast, the
Nasdaq recorded a small gain during a volatile session in which
the index moved above the 4,000 mark for the first time since
early April.  Chip stocks were on the move with Micron (MU),
Intel (INTC), and National Semiconductor (NSM) pushing the
composite technology index higher.  Even with bullish activity,
one component that has been absent from the recent rally is an
improvement in market internals and until breadth gets better,
most investors will continue to be very selective.  Analysts
say that beyond the current short-term recovery, the results of
the upcoming FOMC meeting is expected to determine the outlook
for equities in the Summer months.  The Federal Reserve has voted
to raise interest rates six times in the past year in an attempt
to prevent the U.S. economy from overheating.  Fortunately, most
experts do not expect the committee to raise rates again because
recent figures have indicated the economy is slowing.

Our portfolio was dominated by the continuing rally in technology
stocks.  Redhat (RHAT) was the big winner, up $4.81 to $30 after
the company said it’s expanding an existing relationship with Dell
Computer (DELL) to form the One Source Alliance.  Dell and Red Hat
will team up to accelerate commercial adoption of the Linux system
and to support businesses building Internet infrastructures.  The
pact allows Red Hat to help Dell deliver Linux products to its
customers and outlines an integrated package of joint development
programs, global services and marketing initiatives.  Our diagonal
position has reached profitability in just three days.  Macromedia
(MACR) rallied a second consecutive day as news of the success of
their most popular software became public.  Today the company
announced that Macromedia Flash software is a critical component
of the online sites for CBS’ successful “Survivor” reality-based
show and ABC’s “Who Wants to Be a Millionaire?”  Flash software
is reportedly the industry standard for high-impact, vector-based
Web sites that deliver motion, sound, interactivity, and graphics.
Our bullish credit-spread can now be closed for a favorable profit.

Active Software (ASWX) jumped $6.25 to $73 after announcing a new
pact with J.D. Edwards & Company (JDEC), a leading provider of
agile, collaborative solutions for the Internet economy.  The deal
involves a licensing, development and OEM agreement under which
JDEC will embed Active Software's ActiveWorks Integration System
in their OneWorld Xe software.  The two companies will partner to
blend the ActiveWorks open platform into the existing OneWorld Xe
architecture and while the new solution is under development, JDEC
will offer the ActiveWorks product in conjunction with OneWorld Xe,
enabling customers to take advantage of the product immediately.
Cv Therapeutics (CVTX) led the biotech group with a $5 gain to end
at $62.  The issue is now testing resistance at the all-time high
and there appears to be no weakening in the current trend.  Payne
Webber (PWJ) was the sole standout in the financial group, closing
up 1.50 at $52.75 as the stock continues to rally on momentum from
a recent technical break-out.  Our bullish position (JUL40C/45C)
is almost $9 in-the-money and we will be watching for a favorable,
early-exit opportunity.


Summary of Monthly Positions (as of June 18, 2000):

******************************************************************
                  - CREDIT SPREAD SUMMARY -
******************************************************************
Stock  Pick     Last     Position    Credit   Cost    G/L   Status

AFM   $70.31   $75.00   JUN55P/60P   $0.56   $0.12   $0.43  Closed
APA   $57.68   $59.38   JUN40P/45P   $0.62   $0.00   $0.62  Closed
ASWX  $67.75   $61.13   JUL45P/55P   $0.75   $2.00  ($1.25)  Open
BFO   $64.75   $69.69   JUN50P/55P   $0.56   $0.12   $0.43  Closed
BFO   $62.00   $69.69   JUN50P/55P   $0.75   $0.12   $0.62  Closed
BHE   $34.25   $36.50   JUN50C/45C   $0.56   $0.00   $0.56  Closed
CCU   $76.18   $81.69   JUN65P/70P   $1.00   $0.12   $0.88  Closed
CIEN $137.25  $145.25   JUN85P/90P   $0.62   $0.12   $0.50  Closed
CVTX  $55.62   $55.62   JUL35P/40P   $0.75    New     Play   Open
DITC $110.00   $75.44   JUN65P/75P   $1.18   $1.93  ($0.75) Closed
EXDS  $92.75  $103.25   JUL60P/65P   $0.75   $0.50   $0.25   Open
JPM  $126.75  $117.94  JUN145C/140C  $0.62   $0.12   $0.50  Closed
MACR $101.00  $102.06   JUL65P/70P   $0.62   $0.75  ($0.12)  Open
NOVT  $38.50   $42.81   JUN50C/45C   $0.50   $0.00   $0.50  Closed
NTAP  $85.31   $79.94   JUL60P/65P   $0.62   $1.00  ($0.38)  Open
SDW   $63.25   $63.38   JUN50P/55P   $0.50   $0.00   $0.50  Closed
TIN   $49.62   $45.13   JUN60C/55C   $0.62   $0.12   $0.50  Closed

Note:  A number of these positions were closed early to protect
profits or prevent (limit) potential losses.  In addition, the
SCM Microsystems position (last month) was rolled forward and down
to June-$70 options to attempt a break-even exit.  Although our
personal transaction yielded a negative result, the recovering
issue finished well above the sold strike, at maximum profit.
Ditech (DITC) ended in much the same manner as the newsletter
recommendation finished profitable, while our personal exit
strategy produced a small loss.

A credit spread is profitable if the cost to close the position
is less than the initial premium received for the spread.  However,
because we track the plays based on the current closing cost/value,
the gains for credit spreads will rarely be reflected until the
play is closed.
******************************************************************
                  - CALENDAR SPREAD SUMMARY -
******************************************************************
Stock  Pick    Last     Position     Debit   Value    G/L   Status

CPB  $31.00   $30.56  AUG30C/JUN30C  $1.12   $1.50   $0.38  Closed
DF   $27.50   $33.94  AUG30C/JUN30C  $0.38   $1.25   $0.88  Closed
LNY   $7.06    $8.19   OCT7C/JUL7C   $0.43   $0.38  ($0.06)  Open
MGA  $46.00   $46.00  AUG55C/JUN55C  $0.38   $1.50   $1.12  Closed
PSSI $10.31   $10.09  NOV12C/JUL12C  $0.88   $1.00   $0.12   Open
RHAT $23.38   $25.00  SEP30C/JUL30C  $2.00    New     Play   Open
NSI  $23.00   $22.38  SEP25C/JUN25C  $1.18   $0.81  ($0.38) Closed

                     * LEAPS/Covered-Calls *

AET   $64.06  $69.50  JAN65C/JUL70C  $7.75   $6.50  ($1.25)  Open
BSX   $28.31  $24.31  JAN22C/JUN30C  $6.88   $5.25  ($1.62) Closed
CS    $25.43  $22.38  JAN15C/JUL22C  $4.50   $6.75   $2.25   Open
GSB   $17.62  $17.38  JAN20C/JUL20C  $1.62   $2.00   $0.38  Closed
JNJ   $81.50  $89.56  JAN85C/JUL90C  $6.00   $9.00   $3.00   Open
MDT   $39.38  $49.94  JAN37C/JUL50C  $0.62  $10.50   $9.88   Open
NETA  $25.12  $22.06  JAN15C/JUL25C  $1.50   $8.50   $7.00  Closed
NETA  $32.31  $22.06  JAN15C/JUL25C  $7.25   $8.50   $1.25  Closed
ONE   $28.56  $29.00  JAN20C/JUL25C  $4.62   $8.50   $3.88   Open
SEPR  $84.00  $107.19 JAN60C/JU100C $28.75  $37.75   $9.00   Open
TX    $58.00  $57.81  JAN45C/JUL60C $11.38  $12.00   $0.62   Open
TX   $58.00   $57.81  JAN60C/JUL60C  $2.38   $3.25   $0.88   Open
VOD   $49.25  $49.69  JAN45C/JUL45C  $2.00   $4.50   $2.50   Open

Calendar (time) spreads are profitable when the value of the
position exceeds the initial debit (or cost-basis) at the end of
the expiration period for the long position.  However, because we
track the plays based on the current closing cost/value, the gains
for time spreads will rarely be reflected until the play closes.
Each month, as we sell a new option against the long position, the
net cost should decline or the position value should increase.
******************************************************************
                   - DIAGONAL SPREAD SUMMARY -
******************************************************************
Stock  Pick    Last     Position     Debit   Value    G/L   Status

ADAC  $18.25  $21.75  AUG17C/JUL20C  $1.50   $2.00   $0.50   Open
ANDW  $27.38  $39.06  JUL15C/JUN25C  $5.75   $9.50   $3.75  Closed
CNC   $6.93    $6.00   AUG5C/JUL7C   $1.62    New     Play   Open
IBC   $15.25  $14.25  OCT12C/JUL15C  $2.38   $2.62   $0.25   Open
ISSI  $35.31  $37.63  OCT25C/JUL35C  $8.75   $9.00   $0.25   Open
KEY   $21.00  $18.69  SEP20C/JUL22C  $1.88   $1.25  ($0.62) Closed
MAT   $13.06  $13.63  JUL10C/JUN12C  $2.00   $2.50   $0.50  Closed
NGH   $19.68  $25.06  SEP25C/JUN22C  $5.75   $6.50   $0.75   Open
PBY   $7.50    $6.81   OCT5C/JUL7C   $1.62   $1.75   $0.12   Open
SUB   $27.00  $25.75  JUL20C/JUN25C  $3.50   $4.75   $1.25  Closed
TX    $55.00  $57.81  OCT40C/JUL60C $10.62  $13.12   $2.50   Open
USB   $25.06  $19.81  DEC20C/JUN27C  $5.88   $7.25   $2.38  Closed

Note: A number of these positions were closed early to protect
profits or prevent (limit) potential losses.

The diagonal spread is profitable if the value of the position
exceeds the initial debit (or cost-basis) at the expiration of
the long position.  However, because we track the plays based on
the current closing cost/value, the gains for diagonal spreads
will rarely be reflected until the play closes.  Each month, as
we sell a new option against the long position, the net cost
should decline or the position value should increase.
******************************************************************
                        - DEBIT SPREADS -
******************************************************************
Stock  Pick     Last      Position    Debit   Value   G/L   Status

ALL   $26.00   $22.38   JUN20C/22C   $2.12   $2.38   $0.25  Closed
ASH   $35.18   $35.75   JUN30C/35C   $2.88   $4.75   $1.88  Closed
ATHM  $19.94   $18.25   JUN15C/17C   $1.75   $2.38   $0.62  Closed
CEGE  $25.00   $25.56   JUL22C/25C   $2.00   $2.38   $0.38  Closed
COVD  $26.88   $18.44   JUN20C/22C   $1.88   $2.25   $0.38  Closed
CVG   $48.75   $49.38   JUL35C/45C   $8.25   $8.25   $0.00   Open
FLC   $24.06   $24.75   JUN17C/22C   $3.62   $4.50   $0.88  Closed
FVCX  $10.12    $8.19    JUL5C/7C    $2.12    New     Play   Open
GSPN $104.62   $86.88   JUN80C/90C   $8.00   $7.00  ($1.00) Closed
HYSL  $32.31   $32.31  JUL30CC/25NP $25.62  $26.00   $0.38   Open
PWJ   $49.18   $50.06   JUL40C/45C   $4.00   $3.50  ($0.50)  Open

Note: A number of these positions were closed early to protect
profits or prevent (limit) potential losses.

A debit-spread is profitable if the value of the position exceeds
the initial cost of the spread when the play is closed.  However,
because we track plays based on the current cost/value, potential
gains may not be reflected until both positions are closed.
******************************************************************
                     - CREDIT STRANGLES -
******************************************************************
Stock   Pick     Last     Position    Credit  Cost   G/L   Status

JNPR  $119.00  $113.00   JUL175C/82P  $4.50  $3.50  $1.00   Open
MEDI   $49.42   $70.25    JUN63C/36P  $2.12  $0.00  $2.12  Closed
WLP    $74.88   $74.19    JUN80C/70P  $2.12  $0.25  $1.88  Closed

Credit strangles are profitable if both positions remain OTM until
expiration.  The cost-to-close price can be used to compare the
initial opening credit to the current spread value.
******************************************************************
                      - DEBIT STRADDLES -
******************************************************************
Stock  Pick     Last    Position    Debit    M/V     C/V    Status

AEG   $40.25   $38.19   AUG40C/40P  $6.50   $6.38   $3.00    Open
ICCI  $15.00   $15.06   AUG15C/15P  $3.93   $3.75   $3.00    Open
JNY   $30.00   $23.63   AUG30C/30P  $7.12   $7.75   $6.50    Open
LII   $11.38   $12.56   SEP12C/10P  $1.25   $1.75   $1.12   Closed
LII   $11.75   $12.56   SEP12C/10P  $0.81   $1.25   $0.43    Open
NLCS  $49.56   $46.81   JUL50C/50P  $9.62  $12.00   $6.00   Closed

          M/V = Maximum Value  C/V = Current Value

* NLCS reached the ($12.00) credit on both sides of the position.

A debit-straddle is profitable when the value of the position
exceeds the initial cost.
******************************************************************
Note: We trade the Spreads portfolio just as we would trade our
personal account and the ongoing narrative is a service we provide
to help novice traders understand how various positions might be
opened and closed.  It is not intended to substitute for your own
trading techniques nor does it replace your duty to manage the
positions in your portfolio.  We post a list of the current plays
after each expiration period and the summary is a reasonable
representation of the positions offered during the month.
Questions & comments on spreads/combos to Contact Support
******************************************************************
                         - NEW PLAYS -
******************************************************************
CYTO - Cytogen  $8.50  *** Biotechs Are Hot! ***

Cytogen Corporation is an established biopharmaceutical company
with two principal lines of business, proteomics and oncology.
Cytogen is extending its expertise in antibodies and molecular
recognition to the development of new products and a proteomics
drug discovery platform.  The company has established a pipeline
of product candidates based upon its proprietary antibody and
prostate specific membrane antigen (PSMA) technologies.  Cytogen
is also developing a proprietary protein pathway database as a
drug discovery and development tool for the pharmaceutical and
biotechnology industries.  The company is extending its cancer
pipeline by exploiting PSMA, which they exclusively licensed
from Memorial Sloan-Kettering Cancer Center.  PSMA is a unique
antigen highly expressed in prostate cancer cells and in the
neovasculature of a variety of other solid tumors, including
breast, lung and colon.

Biotechnology stocks continued their recent recovery this week,
with advancing issues dominating the broad-market leaders.  We
favor the small-cap stocks in this bullish group and a number of
companies have outstanding upside potential.  Cytogen is one of
those candidates and with the favorable option premiums, this
position offers a great way to speculate on the near-term future
of the biotechnology rally.


PLAY (conservative - bullish/diagonal spread):

BUY  CALL  AUG-7.50   UOR-HU  OI=934  A=$2.62
SELL CALL  JUL-10.00  UOR-GB  OI=802  B=$0.88
INITIAL NET DEBIT TARGET=$1.50 INITIAL TARGET ROI(max)=66%

Chart =
/charts/charts.asp?symbol=CYTO
******************************************************************
GMGC - General Magic  $6.50  *** On The Rebound! ***

General Magic, a development stage company, is involved in voice
application services to various businesses.  The company enables
businesses to give their customers voice access to information
and services, whether provided through customer interaction
centers and telecommunications networks or through the Internet.
The company develops and deploys voice applications on its
magicTalk communications platform and offer hosting services for
those applications in their state-of-the-art network operations
center.  General Magic has also developed branded services which
demonstrate the attributes of its communications platform and
voice user interface technologies.  This has permitted GMGC to
evolve the capabilities of its platform in order to meet the
requirements of their large scale applications.

The recovery in GMGC shares started early in June and last week
the company announced a new communications platform architecture
that may be part of the reason for the rally.  The development
enhances MagicTalk, a premier system of tools and software for
creating personality-rich, context-aware voice applications and
services.  General Magic designed the MagicTalk group of products
to enable rapid deployment for customer relations management,
Internet and telecommunications companies.  The architecture
takes advantage of the industry standard VoiceXML scripting
language, enabling GMGC to deliver rapid time to market for their
customers.  MagicTalk's interfaces provide customers with the
flexibility to choose various telephony and speech recognition
engines.  With this new platform, General Magic will focus on the
business-to-business market, developing and hosting a number of
voice applications.

We favor the new bullish trend in this unique issue but there
will likely be some technical consolidation in the near future.
The disparity in front-month option premiums will allow us to
speculate on the movement of the stock with a reasonable margin
for error.  As with any position, you must decide if the play
is appropriate for your individual skill level, risk-reward
tolerance and portfolio outlook.  In addition, we recommend that
you avoid the strategy if you are not completely comfortable with
the potential loss, the necessary adjustments and the common
entry-exit strategies.


PLAY (aggressive - bullish/calendar spread):

BUY  CALL  NOV-7.50  GGQ-KU  OI=1948  A=$2.00
SELL CALL  JUL-7.50  GGK-GU  OI=556   B=$0.62
MAXIMUM INITIAL NET DEBIT=$$1.25  TARGET ROI=25%

Chart =
/charts/charts.asp?symbol=GMGC
******************************************************************
                   - STRADDLES AND STRANGLES -
******************************************************************
UIS - Unisys  $24.62  *** Merger Speculation! ***

Unisys is a worldwide information services and technology company.
The company provides services, systems and solutions, and its
Unisys e-action Solutions, that help customers apply information
technology to seize the opportunities and overcome the challenges
of the internet economy.  Unisys has two major business segments:
Services and Technology.  In its Services segment, the company
integrates and delivers the solutions, services and network
infrastructure required by business and government to transform
their organizations to the Internet economy.  In its Technology
segment, Unisys develops servers and related products that operate
in high-volume, mission-critical environments.

Unisys traders created a surge in options volume earlier this week
as speculators bet the company will be taken-over.  Even after the
issue consolidated from Monday’s gains, implied volatility on UIS
options was sharply higher.  Today’s activity was robust with the
majority of contracts in calls.  Rumors of a deal involving Unisys
have been around for some time and the recent trading range bottom
near $25 suggests there may be some future upside potential.  We
favor the issue for a neutral-to-bullish position but there are
very few ways to approach the inflated option premiums.  In this
case, we have decided to sell premium for credit and use the
earned income to offset any losses on the downside, in the event
we accept assignment of the issue.  If the price of Unisys moves
through the resistance area near $32 on “buyout” news, we will
purchase the stock to cover our sold options.

 
PLAY (aggressive - neutral/credit strangle):

SELL CALL  JUL-35  UIS-GG  OI=5593  B=$0.56
SELL PUT   JUL-20  UIS-SD  OI=2096  B=$0.75
INITIAL NET CREDIT TARGET=$1.38-$1.43 ROI(max)=25%
UPSIDE B/E=$36.38 DOWNSIDE B/E=$18.62

Chart =
/charts/charts.asp?symbol=UIS



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