The Option Investor Newsletter Tuesday 10-31-2000 Copyright 2000, All rights reserved. 1 of 2 Redistribution in any form strictly prohibited. To view this email newsletter in HTML format with embedded charts and graphs, click here: http://www.OptionInvestor.com/htmlemail/103100_1.asp Posted online for subscribers at http://www.OptionInvestor.com ****************************************************************** MARKET WRAP (view in courier font for table alignment) ****************************************************************** 10-31-2000 High Low Volume Advance/Decline DJIA 10971.10 +135.30 10995.40 10812.30 1.35 bln 2053/886 NASDAQ 3369.63 +178.23 3379.08 3226.62 2.15 bln 2775/1254 S&P 100 750.93 + 18.16 752.43 733.97 totals 4828/2140 S&P 500 1429.40 + 30.74 1432.22 1401.18 69.3%/30.7% RUS 2000 497.68 + 14.96 497.68 482.72 DJ TRANS 2744.62 + 58.01 2747.86 2671.16 VIX 25.99 - 1.80 27.88 25.62 Put/Call Ratio 0.64 ****************************************************************** October is over, and none too soon! What a relief and what a way to exit the month known as the bear killer. If the bear is dead we can't prove it by the month on the Nasdaq. With a loss for the month of -345 points the Nasdaq has been beaten senseless. The Dow however, thanks to the last three days, gained over +310 points from the 10659 close on Sept 28th. The Dow clawed back from negative territory this morning to post a triple triple, the third day in a row with a triple digit gain. No trick or treat there! Or maybe the Dow and Nasdaq up strong on the same day is a trick in itself? The Dow was tanked after the open by steep losses in Proctor&Gamble but with investors eager to jump in front of the anticipated Fall rally the dip was only temporary. With only a brief pause on the 25th and 26th the Dow has gained over +1300 points since the lows on October 18th. This is about as vertical as you can get with an average of over +130 points per day for the ten day period. Can you say over bought? Maybe so but then over bought from a seriously over sold condition. Still nothing goes up in a straight line so we could see a cooling of this frantic climb at any time. The -$7 morning drop by PG came on the heels of an earnings report that met analysts estimates but showed a -2% drop in revenue. The weak Euro impact to PG took -35 points off the Dow with the report. The drop by PG in the Dow was more than made up for with the almost +6.00 gain in CSCO just one day after being downgraded by Lehman. Today Merrill Lynch took revenge on Lehman for downgrading their favorite stock by downgrading Lehman. Trick or treat LEH! Maybe CSCO was Merrill's pick to replace Honeywell in the Dow? Rambus got a short circuit today with conflicting stories of a move by Intel away from Rambus technology. Electronic Buyers News said it had obtained a document that showed Intel planned to phase out future support for Rambus products. An Intel spokesman however said there would be no change in the Intel stance. RMBS dropped -11 in early trading but recovered to only -8 as investor denial caused a bounce in the shares. With the markets all coming into alignment the economic news is still mixed. The consumer confidence today showed a drop well below the estimate of 140 with only a 135.2 reading. Maybe the economy is really slowing and maybe not. Maybe it is just consumers reacting to the falling stock market and margin calls are making it tougher to remain positive. The other economic report showed the NAPM index at 49.6 the lowest reading in 21 months and the sharpest drop since May 1980 after posting a 62.4 in August. This evidence of a serious contraction may actually hasten the Fed into a rate cut sooner than expected to avoid a crash instead of a soft landing. With analysts claiming this may be a November to remember should we start making new years eve party plans now? The Nasdaq rebound today after getting hammered on Monday looks to be a confirmation signal with the second higher low since the October 18th bottom. The rally came on high volume with advances beating declines by a greater than 2:1 margin. The new lows on the S&P have finally turned the corner and are dropping while the new highs are rapidly accelerating. This appears to be a broad market move with the S&P, Dow, Nasdaq all participating and the Russell-2000 closing at a three week high as well. Even the Dow Transports are soaring with a +300 point gain in just the last four days. Dow theory followers should be ecstatic. Did I mention that the volume of 1.35 billion on the NYSE was the seventh heaviest ever? The last of the tax sellers appeared around 2:15 PM but buyers cheered the pull back and bought their cast offs with enthusiasm. Hopefully the tax selling was the real reason behind the last two weeks volatility and we will only move up from here. This remains to be seen but appears to be the consensus of opinion. There is some concern that the bounce today was simply the result of funds buying a few thousand shares of the leaders in order to put the final window dressing on the month end reports. This happens constantly and paints the tape with the illusion of buying. IF the tax selling by mutual funds was the real reason for the October drop then the funds are now flush with new cash and the buying season will begin tomorrow. The tens or even hundreds of billions in cash on the sidelines must now be put to work between now and December 31st. The influx of new cash to these same funds from retirement plans and the year end IRA contributions could also fund the potential Fall rally. Historically the November and December months are very strong and with the Fed on hold until well after the election the only thing on investors minds should be which stock to buy if the rest of the week is as good as today. With millions of investors breathing a sigh of relief after the Dow's performance over the last several days and now the Nasdaq confirmation you can bet there will be a lot of charting done tonight after the trick or treaters go to bed. Parents on a sugar high from consuming the rejects will be deciding what to add to their decimated portfolios and planning that summer cruise on the proceeds. We are a nation of optimists and any daylight at the end of October is cause for celebration. Now that you are all pumped from the anticipation of the funeral for the bears let me give you a few words of caution. Thursday we have the Productivity report for the third quarter and Friday we get the always interesting Non-farm payroll report coupled with Factory Orders for September. Just three of the key indicators the Fed watches closely. Add that to the +1300 points the Dow has risen since October 18th and you could see a little profit taking between now and Friday. What we do not know is if the new buyers can overpower the sellers and keep the rally alive. This concern is evident by the put/call ratio which is now at .64 which indicates slightly more put buying than normal. The COT report today showed that small traders are now at extreme levels of bullishness with a huge number of calls while the institutional traders are still short at ten year extremes. This is setting up for an interesting tug of war beginning next week. If the big guys are forced to cover these positions in a raging market the explosion could be huge. Get out the party hats, start ordering that champagne and get ready to party! Good luck and sell too soon. Jim Brown Editor *********************** FREE LUNCH IN PHILADELPHIA - Last one this year! November - 8th. *********************** OptionInvestor.com, Preferred Trade and E-Signal will hold a FREE seminar complete with handouts, freebies, door prizes and over six hours of solid information which can improve your trading results. Lightning trades, real time quotes, the best option strategies and a FREE BREAKFAST and LUNCH! How can you go wrong? It is free but you have to register so we can order food. http://www.OptionInvestor.com/seminar/free ************************* REGIONAL SEMINAR SCHEDULE ************************* Only three seminars left. Here is your chance to learn from the pros. The three day Technical Analysis Stock and Option Fall Seminar Series. Three days of indepth education. Don't miss it! Date City Nov 02-04 Phoenix Nov 09-11 Miami FL Dec 07-09 Philadelphia Has the market been beating you up? Did you give back your gains from April/August? Would you like to understand all the technical indicators our writers use? Does the alphabet soup of technical terms like RSI, DMA, MACD, ROC, Stochastics, Bollinger bands, sound like Greek to you? You can learn from the experts how to interpret all these indicators, read charts, pick stocks and which option strategies to use on those stocks for less than the cost of one bad trade. Reserve your seat now for one of our regional seminars. Click here for more info: http://www.OptionInvestor.com/seminar/seminar.asp ************************Advertisement************************* Tired of waiting on trades to execute? Does your broker offer Stop Losses on Options? Trade instantly with Stop Losses at Preferred Capital Markets Stop Losses based on the option price or the stock price. Move your trading into the next millennium with Preferred Capital Anything else is too slow! http://www.PreferredTrade.com/CF/Home.CFM?ID=OIN ************************************************************** **************** MARKET SENTIMENT **************** Triple Digit Gains In Tandem By Matt Russ The two major market indices got their acts together and rallied impressively. Really it was the NASDAQ that broke its two day downtrend with a strong 5.5% rally, picking up on the INDU's four days of gains. With the two moving up in tandem, can we safely say the worst is over? Austin told me to say yes. He is currently on his way back home after the great Seminar weekend we had. Looking at the NASDAQ chart, there was little sign of weakness as the tech trended steadily throughout the day. Today's 2.1 bln share day of 178 points is very encouraging as it represents a confirmation of Thursday's massive rally that I mentioned in Sunday's wrap. To strengthen this rally even further, the volume handily beat yesterday's 1.7 bln shares on the 86 point pullback. Just another positive sign in the bottoming process. The VIX.X sunk the last two days as investors' fears subsided a bit, even during yesterday's profit taking. In fact, the majority of decline in the VIX.X came yesterday. Go figure! The fear gauge closed today at 25.99. Are we out of the woods yet? If we continue to see this pattern of higher lows for the NASDAQ, I would have to say yes. So far so good for this bottoming process. Yesterday was another higher low at 3149, and today the NASDAQ didn't even come close to that level. We will keep our fingers crossed, hoping that if profit takers come out tomorrow on the first day of November, the buyers won't be far off to defend today's gains. At least we can say good bye to the notorious month of October. Happy Halloween! ***** VIX Tuesday 10/31 close: 25.99 30-yr Bonds Tuesday 10/31 close: 5.78% Support/Resistance Indicator The Index Support/Resistance(S/R)Ratio is a formula used to gauge possible support or resistance based on open-interest disparity. Ratio listed is percentage of calls to puts or puts to calls respectively. Support is factored from dividing puts by calls at strike levels beneath index closing price. Resistance is factored from dividing calls by puts at strike levels above current closing price. Tuesday (10/31/2000) (Open Interest) Calls Puts Ratio S&P 100 Index (OEX) Resistance: 790 - 775 8,742 259 33.75*** 770 - 755 7,674 2,802 2.74 OEX close: 750.93 Support: 745 - 730 16,947 7,313 .43 725 - 710 3,687 9,769 2.65 Maximum calls: 740/6,068 Maximum puts : 700/4,625 Moving Averages 10 DMA 730 20 DMA 732 50 DMA 771 200 DMA 778 NASDAQ 100 Index (NDX/QQQ) Resistance: 90 - 88 25,732 13,699 1.88 87 - 85 27,880 25,547 1.09 84 - 82 36,870 30,057 1.23 QQQ(NDX)close: 81.812 Support: 80 - 78 22,524 44,336 1.97 77 - 75 13,050 32,293 2.47 74 - 72 1,749 44,633 25.52*** Maximum calls: 80/17,821 Maximum puts : 73/23,257 Moving Averages 10 DMA 81 20 DMA 81 50 DMA 88 200 DMA 94 S&P 500 (SPX) Resistance: 1500 10,941 3,991 2.74 1475 17,460 4,782 3.65 1450 10,978 8,423 1.30 SPX close: 1428.94 Support: 1400 25,834 26,987 1.04 1375 13,456 17,930 1.33 1350 8,421 24,651 2.93 Maximum calls: 1400/25,834 Maximum puts : 1400/26,987 Moving Averages 10 DMA 1385 20 DMA 1385 50 DMA 1440 200 DMA 1441 ***** CBOT Commitment Of Traders Report: Friday 10/27 Weekly COT report discloses positions held by small specs and commercial traders of index futures contracts on the Chicago Board Of Trade. Small specs are the general trading public with commercials being financial institutions. Commercials are historically on the correct side of future trend changes while small specs are not. Extreme divergence between each signals a possible market turn in favor of the commercial trader’s direction. Small Specs Commercials DJIA futures Open Interest Net Value +89 -483 Total Open Interest % (1.07% net-long) (2.34% net-short) NASDAQ 100 Open Interest Net Value -262 +85 Total Open Interest % (1.48 net-short) (.21% net-long) S&P 500 Open Interest Net Value +57,031 -66,429 Total Open Interest % (31.05% net-long) (10.72% net-short) What COT Data Tells Us: Commercial positions in S&P 500 have held their ten-year extreme short levels while small specs increased their net-long positions as compiled Tuesday 10/24 by the CFTC. Next Fridays data should give a clearer picture to Commercials either covering some profitable shorts or holding fast into next Tuesday. Bullish: Fed's finished Benign government reports Oversold markets Disparity in overhead call/put ratios VIX above 30 Certain market leaders (MSFT,JDSU) showing strength Bearish: Oil Prices COT reports Recent pre-warnings, downgrades Broad market's break of critical M/A support Market leaders breakdown Daily technical chart indicators ************** MARKET POSTURE ************** As of Market Close - Tuesday, 10/31/2000 Key Benchmarks Broad Market Last Support/Resistance Alert **************************************************************** DOW Industrials 10,971 10,250 11,100 ** SPX S&P 500 1,429 1,335 1,445 ** COMPX NASD Composite 3,369 3,000 3,550 OEX S&P 100 750 700 775 ** RUT Russell 2000 497 455 500 NDX NASD 100 3,282 2,950 3,550 MSH High Tech 928 835 975 BTK Biotech 734 680 780 XCI Hardware 1,268 1,130 1,310 GSO.X Software 412 360 440 SOX Semiconductor 741 600 805 NWX Networking 1,039 925 1,180 INX Internet 347 275 370 BIX Banking 603 545 630 ** XBD Brokerage 627 585 655 ** IUX Insurance 814 760 830 ** RLX Retail 797 730 820 ** DRG Drug 421 395 440 HCX Healthcare 880 840 900 XAL Airline 150 130 160 ** OIX Oil & Gas 304 296 320 Eight alerts were triggered at resistance in the past two sessions. Raising support (DOW, SPX, BTK, BIX, XBD, IUX, RLX, XAL). Raising resistance (DOW, SPX, OEX, BIX, XBD, IUX, RLX, XAL). We are starting to see a lot of strength building in several sectors, so traders should snug up those stops and don't let profits slip away! *********** OPTIONS 101 *********** What A Great Weekend! By Lee Lowell I'm writing this week's article as I'm flying back from the Denver expo. Right now I'm somewhere over the Pacific Ocean on my way back to Hawaii. Before I actually made my decision to attend the seminar, I was a little hesitant on whether I should go or not. I was given an invitation about 5 weeks before the event and I wasn't really sure if that was enough time for me to put together a quality presentation. Let me just tell you, even though I had concerns, attending the expo was probably the best decision I've made in a long time. I don't care how much you think you might know about stock and option trading, there's always someone else out there who knows more than you and there's always something you can learn at any point in your life. And I'm glad I went because I learned a bunch. Anyways, I'd just like to say that I was honored to be a part of such a wonderful event. The list was long on quality speakers and the food was great too! I enjoyed talking to many of the attendees and it was great to finally put a face to the names of all my OIN cohorts. As some of us writers are freelance, we all don't get to work together in the Denver office. I got a real kick out of listening to Chris V's horror trading stories, and I feel the rest of the gang are all top notch. It was great to meet Jim, Buzz, Vince, Mark, Molly, and Austin (and Wendy too!) So thanks again everyone for letting me share with you what I know about options trading. Just before I was about to give my presentation at the expo, the Head Guy - Jim Brown, said that my topic of discussion is a boring subject, so there may be some sleepy faces out there. The nerve! What's boring to some may be fascinating to others. At least that's what I was told afterwards by a few wonderful attendees. Nevertheless, when I was finished giving my presentation, I came to the conclusion that many of the students don't do much in the way of volatility analysis before they actually put on a trade. But that's okay, because that's why they came to the seminar in the first place. For some of you who didn't attend the expo, my topic of discussion was volatility and how to use it in your trading. I realize that my topic was not on the high priority list for many of the students. The feeling that I get now is that most of the readers want to know what trade to make, when to make it, and when to get out. That's what the subscription is for. The picks are well researched and the reader knows they are quality plays recommended by qualified professionals. Nevertheless, through all my years of trading, I've learned that there can only truly be one person who should be the ultimate decision maker and who should hold sole responsibility for their trades. And that one person is YOU! (or me in this case). So even though you have faith in the OIN picks, just make sure you go the extra step and do a little more research. And this is where I come in. There was a ton of information packed into those 3 days for even the most veteran traders to absorb all at one time. This is why I'd like to dedicate the rest of my article to going over the key points that I was trying to convey in my presentation. Since my topic was about volatility, we need to distinguish between the 2 different types. Historical volatility (HV) is a measurement of the past price behavior of the individual stock or index. It can be measured for any period in the past that you wish to study. It is quoted as a % number like 35% for example. It tells how the prices of the stock have been distributed over time. In statistical terms, the volatility is really the standard deviation of those price changes. Looking at the past HV of a stock can give us a clue as to what the stock's volatility might be in the future. Thus, giving us a clue of what kind of range the stock might fluctuate within until our options expire. Implied volatility (IV) on the other hand, is a % number that is unique to each individual option that trades on that underlying stock. IV is the option market's best guess as to what the stock will do in the future. So in essence, the options are giving us a clue about future movement of the stock. HV is based on past price behavior, and IV is based on future expectations. Which one is correct? That's the mystery and that's what makes options trading so unique. You'll never know which one is correct until your options actually expire and you can go back and see which one was more accurate. How do you use HV and IV? They are used to assess the relative expensiveness or cheapness of option premiums. In my personal trading, I will use IV data 95% of the time to tell me whether option premiums are high or low. The way to do this is to check past levels of IV by using historical IV charts. Just as some stocks seems to trade within certain price ranges, IV can do the same. If IV is in the high end of its historical range (I like to look at 2 years worth of IV history), then I know option premiums are on the high side and I should look for selling strategies. If IV is on the low end of its historical range, then I will look at buying strategies. And those buying strategies don't always entail the buying of calls. I can look to buy puts also. I choose to focus on the past behavior of IV instead of the past behavior of HV because I like to look at future expectations and not on what happened to the stock in the past. The traders on the options exchanges are the ones who set IV and I'm going to accept their levels. They are the ones with the most information and the most experience(most of the time), so I'm not going to argue with their levels. Why try to fight the market? Just like I said at the expo: If you want to buy a YHOO $60 call and get a quote of $15 for that call, do you have any idea if that's a fair price for that $60 call? Maybe it should be worth $13 or maybe it should be worth $17. The only way to truly know is to check the IV. If IV is high, then that $60 call is probably overpriced. If IV is low, then maybe $15 is a good deal. Check the volatility. The next step is to use an options calculator. These are free handy little tools that you can use to price any option. It can figure a stock's HV and any option's IV. The calculator can also be used for "what-if" situations. Just change around the price of the stock, change the days-to-expiration, or change the volatility estimate and you will see how the price of your option will change. Once you've seen what your option should be worth and what you feel may happen in the future, take your break-even points and throw them into a probability calculator. The probability calculator, which can also be gotten for free on the web will give you your true odds of success. Just plug in your break-even or stop-loss levels and the probability calculator will tell you what your chances of success are. You'll be amazed at the results. If you are solely an option's buyer, you might be a little disappointed at the low odds of success that most option- buying strategies provide. Lastly, I'd like to go over an option "skew." Skewing occurs when each option on the same stock trades at a different IV level. This will occur because of the fears and speculations of the individual option players. Some think they can beat the market and play the market accordingly. Others get irrational because of fear of loss and will trade accordingly. When you get those emotions factored into the market, it causes discrepancies in the option prices and thus leads to different IV on each strike. We can take advantage of skewing by doing spread trades. They can be debit spreads, credit spreads, ratio spreads, backspreads, etc. If you can construct the spread whereas you buy the lower IV strike and sell the higher IV strike, you will theoretically have a position with an edge. Take a look at some of my older articles that go into details on how to use these strategies. Good luck and use all the tools available. Happy Halloween! ************** TRADERS CORNER ************** Random Observations from a Private Trader By Scott Martindale You know, it seems to me that if we can tune out the constant noise of market gurus, Maria Bartiromo, et al, and just think from an historical basis what the market will probably do, we might actually do much better with our trading, at least for intermediate-and long-term trading. Everyone expected at least 10% correction in the spring, a shaky trading-range summer, and a retest of the lows during October. Guess what we got? Yet many of us failed to get out in time to miss the spring ding, and every time the market has rallied strongly since late summer we wondered if the fall rally was starting early. But it all has gone very close to consensus expectation. Those savvy enough to hold cash until a strong capitulation transpired have been able to buy great companies at pretty darn good prices. Or at least we thought last week. The commentary from my charting service has been oscillating between a pessimistic view with a Nasdaq decline to the 1999 mid-year highs (about 2800) and an optimistic view of "higher lows" and a "successful retest" of this year’s lows, depending upon the particular market action of the given day. Me? I jumped the gun a bit on the expected fall rally with these "successful retests," bought good companies (or sold naked puts) too soon, and failed to exit on the downdrafts for fear of missing out on a quick recovery. We all know how tough it is to exit on a gap down since the dollar losses can be so significant, although I have written recently about the importance of an objective (emotionless) exit strategy. If you go to cash in an oversold market, you might miss out on a nice bounce. If you follow a stop loss with a buy stop to catch the recovery in this environment, you might get whipsawed into another losing situation. If you have been standing pat with the strategy of sticking with your analysis and own the stock at the given price, you are likely watching your portfolio gradually dwindle in value. In this market, you've had to either stay in cash, hold positions for the long term, or play the intraday swings. However, I keep telling myself that a stock like JDSU has way more upside than downside at these prices. Have I been brainwashed? Or will communications infrastructure and Internet- enabling networking and software companies truly lead us to the Promised Land? Today was encouraging, but will MSTR ever hit $300 again? There is an arresting article in the November issue of Bloomberg Personal Finance. It’s called "3 Wall Street Truths You Can’t Trust." Those false "truths" are: (1)"Buy a good company, hold it, and over time, you’ll make money." (2)"You can’t time the market." And (3)"Over the long haul, U.S. equities outperform all other investments." The author then proceeds to present data in an effort to debunk each statement. For example, the top companies in the past tend to reach overbought P/E’s based on unsustainably high earnings growth rates. If you ignore the "life cycle" of the company and get in near the peak, you’ll likely end up with poorer returns than other less sexy investments. The article suggests that the best way to time the market is to avoid buying at the peaks, and you do that by focusing on low P/E’s, i.e., avoid the popular momentum stocks. Moreover, many (including Warren Buffett) believe that today’s market is still overvalued and that corporate bonds might actually outperform equities over the next several years. Even some of the more bullish gurus are implying this as well when they say that you must pick the "right" stocks to make stellar returns in the future because the overall indices will not show the explosive gains of 1999. [Of course, few people predicted those explosive gains in the major indices for 1999 either.] What’s this mean to us as options traders? Well for one thing, you should choose your LEAPS carefully. Try to catch stocks at very strong support - so strong that the P/E might actually be historically reasonable. Also, don’t get too careless monitoring your naked put plays. As I have found, "strong support" can evaporate unexpectedly, and the favorable stock price you didn’t think you’d mind paying might be just another "greater fool" price. In Jim Cramer’s article in New York Magazine (Nov. 6), he says that the October swoon has become an annual ritual, a self- fulfilling prophecy, and that money will go back to work for the balance of the year. His reasoning for calling a bottom here: (1) The weak holders finish selling, i.e., they drop their losers and cash in their winners. (2) Mutual fund managers want to avoid a capital gains distribution, especially if they are down in value for the year. (3) Fund investors wait until after the annual distribution to buy more. (4) Fall earnings upside surprises are common after lackluster summer earnings. (5) The "bubble" valuations in Nasdaq have been knocked down to a more palatable level. And (6) Fund managers must put money to work if they want to show decent performance for the calendar year. Where does Cramer say they’ll put their money? In the underperformers? No. He says they’ll chase this year’s momentum stocks (like MO, MRK and MLNM) so that they can show those winners in their portfolios at year-end. Although the Nasdaq certainly appears to be way oversold as we conclude mutual fund tax-loss selling season, market sentiment may be a bit overly optimistic as most investors have continued to express their bullishness, claiming that a market bottom is in place despite the poor technical picture. Also, brokerage houses are generally expressing optimism by recommending an increase in equity exposure in their model portfolios even as they lower their targets on the indices. On the other hand, the moving average of the CBOE put/call ratio appears that it will begin dropping after holding steady recently, indicating at least an intermediate bottom may be in place. Nonetheless, I’m continuing to focus on accumulating good stocks, selling puts, and buying LEAPS at attractive prices in anticipation of a modest post-election fall rally, although what seemed like good prices when I bought some now seems like only a marginal deal. Who knows, there might even be some credence to the speculation that Wall Street is holding back the markets to help Bush get elected. Stay tuned. ************************Advertisement************************* Attention Online Traders: NobleTrading.com has become the first online trading firm to offer both Direct Access Trading, and web based trading to its customers. Trade Direct using any ECN, SOES, and SelectNet, or trade right through your browser using our web based trading application. FREE DSL service for active traders. Visit our website and sign up for a Free real-time demonstration! http://www.sungrp.com/tracking.asp?campaignid=858 ************************************************************** ************* DAILY RESULTS ************* Index Last Mon Tue Week Dow 10971.14 245.15 135.37 380.52 Nasdaq 3369.63 -86.96 178.23 91.27 $OEX 750.93 6.59 18.16 24.75 $SPX 1429.40 19.08 30.74 49.82 $RUT 497.68 2.87 14.96 17.83 $TRAN 2744.62 157.64 58.01 215.65 $VIX 25.99 -3.12 -1.80 -4.92 Calls JNPR 195.00 -14.63 28.63 14.00 Flirted with resistance PKI 119.50 5.63 2.50 8.13 New, running to new highs IMPH 75.63 2.75 4.38 7.13 New, well positioned to run ITWO 170.00 -10.81 13.31 2.50 New, recovery for split run LEH 64.50 2.44 0.06 2.50 Financials charging higher CMVT 111.75 -1.50 3.44 1.94 New, finished Oct with gain ADBE 76.06 -5.19 6.44 1.19 End of day buying on volume MSFT 68.88 1.38 -0.19 1.19 Consolidating recent gains BRCD 227.38 -18.59 19.47 0.88 Recovered with Buy rating EMC 89.06 -4.38 4.63 0.25 Back above the 5-dma RIMM 100.00 -16.63 16.69 0.06 Psychological $100 level NTAP 119.00 -16.81 12.81 -4.00 Earnings two weeks away BRCM 222.38 -14.38 9.69 -4.69 Trading in tandem with QQQ Puts RMBS 44.94 -3.75 -8.50 -12.25 New, chip controversy SLR 44.00 -0.06 -3.94 -4.00 New, expensive acquisition TIBX 63.00 -4.88 2.94 -1.94 Historical resistance at $65 SNDK 53.72 -2.94 4.53 1.59 Downtrend remains intact PHCC 53.75 0.50 3.00 3.50 Needs to weaken DGX 96.25 -0.75 6.50 5.75 Strong buy recommendation FCEL 76.56 1.50 4.31 5.81 Dropped, back above 50-dma PVN 104.00 4.69 4.75 9.44 Dropped, bounced off 200-dma 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: ***** No dropped calls today PUTS: ***** FCEL $76.56 +4.31 (+5.81) News continues to be the overriding factor in keeping this put play afloat. Tensions in the Middle East on Monday continued to put pressure on oil prices. Add to that an alliance between Ballard Power Systems (BLDP) and Millennium Cell (MCEL), in which the two companies will develop a hydrogen generation system for use with portable fuel cells and there was much excitement in the alternative energy sector indeed. This helped FCEL to close up $1.50 or 2.12% on Monday's trading. Today, with stocks rallying across the board, FCEL was lifted even higher. It appears that the head and shoulders pattern that was forming will not come to be, especially with FCEL's move today, back up above resistance at the 50-dma ($76.40). As a result, we are no longer initiating positions. PVN $104 +4.74 (+9.44) Enthusiasm for Financial stocks finally trickled down to PVN this week, helping the stock to put in a solid bounce right at the 200-dma. As fun as the ride down was last week, this lead-filled balloon managed to find its way into an elevator that is going up, and has tacked on an impressive 10% so far this week. The technicals have improved significantly, and it looks like the stock could be on the mend. Since we can't seem to find the down button, we'll take this opportunity to get off the elevator and wait for another play that is going our way. ***********************ADVERTISEMENT************************ Get a NextCard Visa, in 30 seconds! 1. 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The Option Investor Newsletter Tuesday 10-31-2000 Copyright 2000, All rights reserved. 2 of 2 Redistribution in any form strictly prohibited. To view this email newsletter in HTML format with embedded charts and graphs, click here: http://www.OptionInvestor.com/htmlemail/103100_2.asp ************************Advertisement************************* Tired of waiting on trades to execute? Does your broker offer Stop Losses on Options? Trade instantly with Stop Losses at Preferred Capital Markets Stop Losses based on the option price or the stock price. Move your trading into the next millennium with Preferred Capital Anything else is too slow! http://www.sungrp.com/tracking.asp?campaignid=841 ************************************************************** ******************** PLAY UPDATES - CALLS ******************** MSFT $68.88 -0.19 (+1.19) After gaining 36% from its low of $50.44 on Oct 17th, MSFT appears to be consolidating its gains. After hitting $70 on Monday morning, the stock retraced and found support at $68.50 on Tuesday. MSFT is still strongly above its 50-dma of $62.91. The 5-dma and 10-dma are providing support for the time being. The 200-dma of $73.70 may act as overhead resistance going forward. Consider adding new positions on a breakout over $70 with strong volume. Conservative traders might want to wait for a pullback to the 10-dma of $64.70. However, if MSFT settles below the $64 area, consider stepping aside as it could mark an end to the stock's momentum. Volume on Monday and Tuesday was well above the average daily volume of 37 million shares, but lower than the volume seen last Thursday and Friday. This can be a bullish indicator if the pattern of increasing volume accompanies increasing price, and slowing volume accompanies consolidation. Daily MACD chart patterns show the up move still in progress. BRCM $222.38 +9.69 (-4.69) BRCM is now officially part of the NASDAQ 100. The two are now definitely linked, as can be seen by the joint movement between the index and the stock. The intraday comparison is very close indeed. This accounts for the weakness in BRCM yesterday, and the strength offered in the play today. BRCM is being held in check by an overhead resistance at the 20-dma near $225. Since the intraday range on this play has narrowed a bit, we can see a squeeze play forming. This should allow some explosive upside potential in BRCM when it can break above the $225 mark with continued market support. A breakout above this mark could take BRCM back to the $260 area. Support is currently establishing itself at $210, based on this week's basing pattern. News for BRCM has been very quiet since the announcement of its addition to the NASDAQ 100, so we expect sympathetic movement to the markets and sector news to influence the play. Investors should be patient, and wait for BRCM to trade above our suggested $225 resistance before entering the play. Consider setting trailing stops according to entry, with a hard stop below the $210 support area to protect from a breakdown. ADBE $76.06 +6.44 (+1.19) When we started this play on Sunday, we mentioned that there was strong support at the $69-70 level, with the 5, 10 and 50-dmas in that area. Yesterday, with the market eschewing Tech stocks in favor of the old-line industrials, ADBE fell to support, allowing aggressive traders to take a position. The move down was despite coverage on ADBE initiated with a Buy rating and positive comments from Robert Stephens analysts Sasa Zorovic and Lowell Singer. For those who missed the buying opportunity yesterday, a morning dip today led to a bounce, with ADBE moving higher for the rest of the day on accelerating volume. The large spike in buying at the end of the day is especially bullish. Helped by news today of alliances with Interwoven, Nokia, and RealNetworks, ADBE managed to gain 9.25% with twice the ADV. A pullback to support at $75 could provide an aggressive entry point. A bounce off the 5-dma at $72.08 would be another possible entry point but confirm with volume. Consider setting a stop at $70 however, as a move below that level would likely see more weakness. Overhead, the next level of resistance can be found at $80, though a push through recent highs of $77.70 could be enough to offer a conservative entry point. BRCD $227.38 +19.47 (+0.88) For traders who had the courage, yesterday's dip near the psychological support level of $200 provided a highly profitable entry point. With many Tech issues weak to start off the week, Storage stocks sold off broadly. Unable to break through resistance at the 50-dma in the early going, the sellers came in force, dragging BRCD down $18.58 or 8.2% on 175% of ADV. Today, the stock managed to recover all of yesterday's losses, thanks to a strong NASDAQ and an upgrade from Merrill Lynch to a Buy rating. Gaining 9.36% on 145% of ADV, today's recovery from yesterday's dip marks a higher low from those of last week's. Today's close was right above the 50-dma, currently at $227.31. There is also support from the 5-dma, now at $223.86. Along with that there is support in increments of $5 at $225, $220 and $215. A bounce off these levels, backed by buying volume could provide for an aggressive entry point. If BRCD moves below $215 however, it could mean more downside to come so when taking a position, consider placing a stop at this level. For conservative traders, a break above today's resistance at $230 with conviction would be the target to shoot for. EMC $89.06 +4.63 (+0.25) The 5-dma provided resistance yesterday as EMC tested support at $80. Getting as low as $80.88, the stock quickly turned and headed north. Despite this, EMC closed down $4.38 on 150% of ADV. Today, with a favorable market, EMC continued to move higher, wiping out all of Monday's losses to close up 5.48% on over 130% of ADV. With today's close, EMC is now back above its 5-dma , now at $87.68. This is an important level since EMC's sell-off began last week when it fell below this moving average. Now back above it, EMC can look forward to challenging its 10-dma at $92.07 and the 50-dma at $94.61. There is also support at $86 but in entering a play, make sure that EMC can stay above this point, as a move below could signal a return of the sellers. With the 5-dma cleared, a successful re-test of the moving average could allow aggressive traders to enter this play on a bounce off this level. For more conservative traders, a break through resistance at $90, backed by strong volume will be the signal to enter, as it sets EMC up to take out its 10-dma. RIMM $100.00 +16.69 (+0.06) Despite being in different sectors, RIMM's fortunes are tied closely with those of Nortel's. As two of the larger cap Tech stocks in the Toronto Stock Exchange (TSE), the two move together in sympathy. With Nortel selling off yesterday in a weak market for Tech, and especially Networking stocks as a result of a Cisco downgrade, RIMM tagged along for the ride. Closing below its 50-dma, now at $90.33, and the psychological level of $100, RIMM lost over 16% on over 280% of ADV. Today with Tech stocks bouncing strongly, RIMM gained back yesterday's losses, closing up over 20%, with volume over 350% of ADV. With today's buying volume outnumbering yesterday's selling volume, this is a good sign indeed. Also of note is today's resumption of coverage by Credit Suisse First Boston with a Buy rating. Closing right at $100, an entry can be had at current levels, confirmed with a strong TSE, while a bounce off the 5-dma at $98.37 would be a more aggressive entry point. Overhead, the next level of resistance is at the 10-dma, now at $108.95. Make sure that RIMM stays above the $95 area, as a failure below that level could signal further selling. JNPR $195.00 +28.63 (+14.00) Giving investors a Halloween treat, JNPR soared higher today, flirting with the $200 resistance level. Continuing weakness in the Optical sector yesterday pushed our play down to close at $166.38 as tax-loss selling continued to scare investors in the Optical sector. With October drawing to a close, yesterday's unpopular stocks became favorites again today, with the AMEX Networking Sector (NWX.X) gaining an impressive 9.6% today. As good as that sounds, JNPR nearly doubled the Networking sector's performance today, jumping higher by more than 17%, once again scaling the ascending trendline (near $176). Tilting our bias back to the bullish side, JNPR saw robust buying volume, and managed to close back above the 5-dma ($185.63) for the first time in over a week. If today's recovery is for real, JNPR should be able to hold above this level in the face of any profit taking going forward. Use the $185 level as a point to trigger your stop losses. If the stock can't hold above there, consider it a sign that JNPR will have a hard time moving higher. Our ideas from the weekend still stands - while intraday dips (below $185) are buyable, the more prudent strategy is to wait for buying volume to propel the share price through $200 before initiating new positions. NTAP $119.00 +12.81 (-4.00) Ok, let's set some guidelines for this play. For one, the marketplace is very volatile and let's face the Internet reality - it's a jungle out there! Just eight sessions ago, we saw momentum take NTAP up to a new 52-week record at $152.75; only to see the share price vanquish amid the market treachery. Monday's intraday low of $104.88 rivaled last Thursday's deep cut to $102.38 and today's failure to tow the mark above $120 raises the red flags. Apologies for the bleak picture and perhaps negative sentiment, but it's better to be in cash now than sorry later. NTAP's earnings are closing in on us too, so perhaps this event will generate some enthusiasm of its own. The company is confirmed to report on November 14th, after the market. But for now, let's look for strength above $120 and $125 followed by subsequent moves through the 10-dma ($128.86) to bolster confidence. A convincing rally through those levels signals even the more conservative to consider taking an entry on strong bounces. If shares pullback to $115, take heed and exit at this virtual cut-off point. Moves to the underside of $115 spell trouble and are just too risky under the present market conditions. LEH $64.50 +0.06 (+2.50) The financials traced the ascending broader markets this week and LEH is on its way to a strong recovery. It charged higher on Monday to contend with the rising 50-dma, which is currently at $68.15. The bullish attempt to mount this technical opponent was pressured earlier today by an estimate cut from MSDW. Analyst Henry McVey cut Lehman's 4Q profit estimates by 11%, taking it to $1.30 from $1.46 citing "sloppy conditions in both the equity and fixed income markets could pressure principle transactions and banking revenue." He did, however, maintain an Outperform rating and an $86 price target on LEH. After shaking off the negative sentiment and resulting losses, LEH ended the session on a positive note. The stock even demonstrated a bit of spunk as it cleared the $65 hurdle and flirted with $66.44 during the last hour of trading. LEH's convincing performance today hints that a continued rally on the INDU could take the stock above the 50- dma, but let's not get too hasty. Consolidation across the broader markets would take LEH down a couple notches and thus, provide a more optimal entry point. If however the financial rally extends, you might take positions if LEH bolts back above the $65 level amid strong trading activity. ******************* PLAY UPDATES - PUTS ******************* SNDK $53.72 +4.53 (+1.59) Even with today's 9.24% gain, the downtrend for SNDK remains intact. While it was a considerable move up for the day, volume was below average, and the stock encountered formidable resistance from its 10-dma, currently at $56.21. Yesterday, SNDK managed to briefly pierce the key support level of $50 and while it did hold today, it shows that a break below that mark is indeed possible. Connecting the highs since early September, and drawing a line at $50 support, SNDK is currently trapped within a bearish descending triangle, making lower highs and lower lows. For conservative traders, the key level to watch for is $50. A break below that point on high volume will confirm negative momentum and serve as an entry point. Aggressive traders willing to take on more risk by entering early will be watching the 10-dma. A failure to rally above that moving average will serve as an ideal entry point. Legal troubles with Lexar continue to cast a pall over SNDK, adding to its negative momentum. TIBX $63.00 +2.94 (-1.94) Call it an entry point or a warning sign, TIBX managed to post a modest gain today. The four month downtrend is still intact, as our play continues to find resistance at the 10-dma ($66.94), also the location of the center line on the regression channel (which has been acting as resistance all month). Historical resistance at the $65 level came into play again today, as the attempted recovery ran out of gas late this afternoon. Even stronger resistance exists between $71-72, also the site of the 30-dma ($71.75). Although volume has been below the ADV this week, it is still running stronger on the down moves. Support has been building in the vicinity of $58, creating a $7 tradable range for nimble swing traders. Any rollover near resistance looks like an attractive point for initiating new positions, especially if selling volume is on the rise. TIBX will eventually break out of this range, with a downside break looking the most likely right now. Conservative traders will use a move below $58 as their trigger to jump aboard for the next leg to the downside. DGX $96.25 +6.50 (+5.75) There was some Trick and Treating from DGX this Halloween. The treat came early as shares quickly broke $90 in Monday's session amid robust volume levels. The early weakness provided a solid entry into the decline. DGX slithered lower until the buyers stepped at the $84 and $85 level. The shares continued to volley around that price as the traders haggled for a few more hours mid-afternoon. Some traders received a real buying treat at $83.25, Monday's intraday low before DGX mounted a late day recovery on accelerating volume. Some enterprising traders may have been enticed to take an entry. In hindsight though, it was a ghoulish trap. DGX opened to the positive today and received a Strong Buy recommendation from UBS Warburg. Analyst Ricky Golwasser also issued a 12-month price target of $138 p/s. DGX almost rolled over in the $95 range during today's session, but to the contrary, the share price broke through that upside resistance to test the century mark at $99. The play is at a critical point. Previously on the decline, the 5-dma line ($97.06) has served as a deterrent and offered a premium entry for the aggressive traders. It's here that the more aggressive will look for a high-volume rollover and take new positions. Wait for the confirmation and keep stops tight. PHCC $53.75 +3.00 (+3.50) The trending bottom at $50 finally gave way in Monday's session. PHCC pushed through the recent intraday low of $47.50 to tag $46.75, but the downside (no pun intended) was the lack of volume. Today PHCC rallied with the broad markets. It easily cruised through the 5-dma ($51.40) and 10-dma ($53.68) and mounted an attack on the critical 200-dma ($54.10) line. Today's break through $55 wasn't a good sign for the play. If the downtrend's momentum is to resume with any intensity, PHCC needs weaken and show signs of distress at the current price level and soon. Wait for clear direction before beginning new plays. ************************Advertisement************************* Attention Online Traders: NobleTrading.com has become the first online trading firm to offer both Direct Access Trading, and web based trading to its customers. Trade Direct using any ECN, SOES, and SelectNet, or trade right through your browser using our web based trading application. FREE DSL service for active traders. Visit our website and sign up for a Free real-time demonstration! http://www.sungrp.com/tracking.asp?campaignid=859 ************************************************************** ************** NEW CALL PLAYS ************** PKI - PerkinElmer Inc. $119.50 +2.50 (+8.13 this week) PerkinElmer is a global technology company, which provides products and systems to the Telecom, Medical, Pharmaceutical, Chemical, and Semiconductor markets. The company's Life Sciences unit provides chemical reagents, sample handling and measuring instruments, and computer software to bio-screening and population screening laboratories. PKI's Optoelectronics unit produces products such as high volume and high performance specialty lighting sources, detectors, optical fiber communications components, and imaging devices. The company's Instruments division makes sophisticated analytical instruments and imaging detection systems. While high-flying technology stocks have taken a beating recently, shares of PKI have been running to new highs. Investors are starting to take notice as evidenced by significantly heavier buying volume over the past three months that has propelled the stock to a 100% gain in that short period of time. Nothing goes up in a straight line, and the law of gravity took its toll earlier this month, pulling shares of PKI back to consolidate between the $95 - $100 area. The recent rally on the DJIA has helped our new play run higher, tagging $121 in today's session before pulling back in the afternoon to close at $119.50. Launching the latest round of buying was the company's strong earnings report and bullish forward-looking statements on October 19th (see below). Since the latest round of good news, PKI is finding support at the 10-dma ($111.63), just below the 5-dma ($113.44). Near-term support can be found between $113-115, and this level is a logical place to consider new entries in the event of intraday weakness, and also stop areas in the event of a breakdown below the levels. Wait for buying volume to pick up first, and after entering, place your stop at the $113 level. Resistance sits at $121, and conservative players will want to wait for shares to trade through this level before initiating new positions. Getting investors attention on October 19th, PKI announced earnings of 66 cents per share, far ahead of analyst expectations of 45 cents. The company followed these numbers by raising its earnings estimates for 2000 and 2001, and investors responded by going on a buying spree. Since the announcement, PKI has moved to post new 52-week highs, north of $120. BUY CALL NOV-115 PKI-KC OI=196 at $ 9.50 SL=6.75 BUY CALL NOV-120*PKI-KD OI=494 at $ 6.50 SL=4.50 BUY CALL NOV-125 PKI-KE OI=274 at $ 4.38 SL=2.50 BUY CALL DEC-125 PKI-LE OI= 0 at $ 9.00 SL=6.25 Wait for OI!! BUY CALL DEC-130 PKI-LF OI= 0 at $ 7.13 SL=5.00 Wait for OI!! SELL PUT NOV-110 PKI-WB OI= 10 at $ 2.50 SL=4.00 (See risks of selling puts in play legend) Picked on Oct 31st at $119.50 P/E = 57 Change since picked +0.00 52-week high=$121.00 Analysts Ratings 4-0-1-0-0 52-week low =$ 37.75 Last earnings 10/00 est= 0.45 actual= 0.66 Next earnings 01-18 est= 0.57 versus= 0.61 Average Daily Volume = 635 K CMVT - Comverse Technology $111.75 +3.44 (+1.94 this week) Comverse Technology Inc. is the world leader in multimedia telecommunications applications. Founded in 1984 and publicly-traded since 1986, Comverse Technology Inc. is based in Woodbury, Long Island, New York and is a NASDAQ-100 Index company. Through its Comverse Network Systems division, the market leader, the Company markets its Access NP and TRILOGUE Infinity Enhanced Services Platforms, which enable wireless, wireline, and internet companies to offer, to their residential and business customers, a growing range of revenue-generating enhanced services. Pundits are still debating about whether or not the NASDAQ has found its bottom. Investors in CMVT are already wondering when the stock will take out its all-time highs. Having found its bottom in mid-October at the $85 level and successfully testing its 200-dma (now at $90), the stock has since moved higher. With today's close, CMVT is one of the few Tech stocks to end the dreaded month of October in the positive. One of the factors contributing to CMVT's performance is the appreciation of its holdings in wireless networking software maker Ulticom Inc. (ULCM). Since going public in April at $20 a share, ULCM has gone up over 150%. As a majority shareholder of ULCM, this is good news indeed for CMVT. Most recently, CMVT has been in a trading range, between $100 and $115. Connecting the lows since mid-October however, reveals that the stock has been making higher lows, and having conquered resistance at $110, appears poised to take out even stronger resistance at $115. A break above $115 will set CMVT up for its next hurdle, at $120. From there, the stock would be poised to challenge its all-time highs. For aggressive traders, an ideal entry point can be found on a bounce off $107, where the 5 and 10-dmas are currently converged. Support can also be found in increments of $5 at $110 and $105. In managing this play, consider using a stop around the $105 level. A break below this point would end CMVT's string of higher lows and signal a possible break of its current up-trend. For conservative traders who want to enter on strength, a break above resistance at $115, back by high volume would be the ideal entry point. As a company with strong ties to Israel, it may be influenced by the current situation surrounding the Middle East. News affecting the region will likely add to CMVT's volatility. As always, we recommend using stop losses to limit risk. In entering this play, make sure that news is in your favor. Considering CMVT’s relative strength in recent adverse market conditions, a favorable market could mean great potential upside in this play. BUY CALL NOV-105 CQZ-KA OI= 694 at $11.88 SL= 9.00 BUY CALL NOV-110*CQZ-KB OI=1131 at $ 8.75 SL= 6.00 BUY CALL NOV-115 CQZ-KC OI= 770 at $ 6.50 SL= 4.50 BUY CALL DEC-110 CQZ-LB OI= 13 at $14.00 SL=10.50 BUY CALL DEC-115 CQZ-LC OI= 82 at $11.75 SL= 8.75 SELL PUT NOV-100 CQZ-WT OI=1015 at $ 2.38 SL= 4.00 (See risks of selling puts in play legend) Picked on Oct 31st at $111.75 P/E = 90 Change since picked +0.00 52-week high=$123.88 Analysts Ratings 12-4-0-0-0 52-week low =$ 54.56 Last earnings 08/00 est= 0.34 actual= 0.36 Next earnings 11-28 est= 0.36 versus= 0.28 Average Daily Volume = 2.43 mln ITWO - I2 Technologies $170.00 +13.31 (+2.50 this week) ITWO is a global provider of intelligent eBusiness solutions for supply chain management and enhanced business applications. On June 12, 2000 ITWO merged with Aspect Development (ASDV) to create one of the largest software providers for eBusiness and eMarketplace solutions. TradeMatrix, its Internet marketplace, provides an open digital community powered by i2's advanced optimization and execution capabilities that help manufacturers plan production and other related operations. Clients include 3M, Compaq, Ford and Nokia. ITWO's steep decline amid the recent tech correction last week positioned it for a nice recovery run into December's proposed 2:1 stock split. The company recently beat the Street with its solid earnings report. 3Q revenues rose 118% to $319.5 mln from $146.3 mln in the same year-ago period blowing the estimate range of $264 mln to $285 mln right of the water. On a per share basis, ITWO came in at $0.02 cents above the consensus estimates at $0.12, further demonstrating the company's accelerating growth. At the same time, the BoD announced a 2:1 stock dividend payable on or around December 4th pending shareholders approval. A shareholder vote is schedule for November 28th. As a blue chip firm in the e-commerce software arena that forms the backbone of the electronic marketplace, ITWO should remain buoyant over the short-term. On a deep dip to $145.70 last Thursday, ITWO found a bottom. The buyers started nibbling as the tide turned on the NASDAQ that day, and it mounted a swift recovery to the topside of $160. Fast mover to say the least! This week $155 and $160 supported ITWO on intraday pullbacks; yet ITWO continues to struggle to move beyond the $170.75. Aggressive traders might consider looking for entries at the current levels if ITWO can extend today's $13.31, or 8.5% advance. If you'd like to target shoot intraday, keep your mark above $160 on the dip. Trading below this level is quite risky and it'd be wiser to consider buying into strength on the uptake. Expect some resistance at the $180 level. Make sure to keep stops tight. In recent news, I2 Technologies announced it will be part of a venture to merge two purchasing exchanges: AirNewco and MyAircraft. It along with 12 equity partners, including major airline and aerospace manufactures, will create a single exchange for the $500 bln aviation industry in hopes of cutting operating costs. BUY CALL NOV-165 QYI-KM OI= 477 at $15.75 SL=11.25 BUY CALL NOV-170*QYI-KN OI= 423 at $13.25 SL=10.00 BUY CALL NOV-175 QYI-KO OI= 243 at $10.88 SL= 8.25 BUY CALL DEC-175 QYI-LO OI= 9 at $18.00 SL=13.00 BUY CALL DEC-180 QYI-LP OI= 11 at $16.00 SL=11.50 Picked on Oct 31st at $170.00 P/E = N/A Change since picked +0.00 52-week high=$223.50 Analysts Ratings 13-20-4-0-0 52-week low =$ 30.69 Last earnings 09/00 est= 0.10 actual= 0.12 Next earnings 01-16 est= 0.15 versus= 0.10 Average Daily Volume = 4.43 mln IMPH - IMPATH $75.63 +4.38 (+7.13 this week) Applying their broad knowledge and research capabilities, IMPH specializes in providing patient-specific cancer diagnostic and prognostic information, with a particular expertise in difficult to diagnose tumors, prognostic profiles in breast and other cancers, and lymphoma/leukemia analysis. The company currently works with more than 7400 physicians specializing in the treatment of cancer patients and their database currently contains more than 550,000 patient profiles. In addition IMPH can link its information with that of its tumor registry business to provide data on the full continuum of care, from diagnosis through treatment and outcomes on many patients. Another company that has found a way to capitalize on Americans yearning for good health. IMPH applies its diverse database to the treatment of many of the most insidious forms of cancer. If information is power, then IMPH is well positioned with its vast database of patient records, and connections to a large number of physicians. The company currently is working on more than 50 projects with over 20 different pharmaceutical/biotechnology companies including 21 US-based and four international clinical trials. How's that for diversification? After a mild consolidation in August, shares of IMPH started surging higher and in the past 2 months the price has increased by more than 100%. The strong buying volume points to the trend continuing, and with the persistent strong earnings growth (see news below), it seems likely that the trend will continue. Even with the recent market volatility, IMPH has moved solidly higher, with the 10-dma (currently $67.19) supporting prices throughout the recent rally. We want to play this one as long as the stock can maintain its strong character, so we are looking for new entries to present themselves on a bounce from the $70 support level (fractionally above the 5-dma). Today's strong gain pushed the stock to yet another all-time high, and more conservative players will want to wait for a push through this level (above $76) before initiating new positions. In either case, use the $70 level as your stop loss. If IMPH violates this support level, it will be our sign that the rally is losing steam. IMPH pleased investors last a week ago, reporting record results for its third quarter, and marking the company's 27th consecutive quarter of record revenues. Revenues increased 64%, Operating Income Surged 66%, and BioPharma/Genomics revenues jumped 97% over the year ago period. Company management followed this up with bullish comments for the future, pointing to the robust growth in the Oncology drug market. BUY CALL NOV-65 QPH-KM OI= 22 at $12.88 SL=9.75 BUY CALL NOV-70 QPH-KN OI=213 at $ 9.25 SL=6.75 BUY CALL NOV-75*QPH-KO OI= 85 at $ 6.50 SL=4.50 BUY CALL DEC-70 QPH-LN OI= 1 at $12.63 SL=9.50 BUY CALL DEC-75 QPH-LO OI= 4 at $10.00 SL=6.25 Picked on Oct 31st at $75.63 P/E = 106 Change since picked +0.00 52-week high=$75.63 Analysts Ratings 0-3-1-0-0 52-week low =$ 8.53 Last earnings 10/00 est= 0.20 actual= 0.15 Next earnings 01-18 est= 0.22 versus= 0.16 Average Daily Volume = 315 K ************* NEW PUT PLAYS ************* SLR - Solectron $44.00 -3.94 (-4.00 this week) Solectron Corp. is the world's largest supply chain facilitator for customized electronics technology, manufacturing and service solutions. Founded in 1977, Solectron's integrated technology solutions, materials, manufacturing and operations, and global services offer customers competitive outsourcing advantages, such as access to advanced manufacturing technologies, shortened product time to market, and more effective asset utilization. In the news today, Solectron announced their offer to buy Nat Steel for $2.4 billion in cash, or $4.53 per share. Several analysts criticized the deal. Dain Rauscher Wessel's David Parrish stated that, "Roughly 70% of NatSteel's revenues are tied to the PC sector, with roughly half of those from Apple." In addition, the price offered is approximately equal to SLR's annual revenue stream, which was seen as a hefty valuation. Solectron closed down almost ten percent on a strong up day in the market when almost all of the major technology indexes rallied. Volume was high with over 11.5 million shares trading, nearly three times the daily average of 3.3 million shares. SLR is still above the 200-dma of $41.63, but is just below the 50- dma at $45.16. The twelve month chart pattern shows a choppy pattern of trading between support at $35 and resistance in the range of $47, with no clearly definable up or down trend. SLR closed at $44, which is situated strategically below the 10-dma of $47.4, and the 5-dma of $46.71. A break below the 200-dma could be a sign of severe weakness for this stock. However, a move above $48 would mean that strength has returned, and new put positions should not be opened. BUY PUT NOV-50 SLR-WJ OI= 370 at $6.75 SL=$5.00 BUY PUT NOV-45*SLR-WI OI=3595 at $3.00 SL=$1.50 Average daily volume = 3.3 mln RMBS - Rambus Inc. $44.94 -8.50 (-12.25 this week) Synonymous with high-speed memory, RMBS designs, develops, licenses and markets high-speed chip-to-chip interface technology to enhance the performance and cost-effectiveness of computer and consumer electronics products. The company licenses semiconductor companies to manufacture and sell memory and logic ICs incorporating Rambus interface technology, and markets its solution to systems companies in an effort to encourage them to design Rambus interface technology into their products. The major advantage of RMBS' technology is that it cost-effectively increases the data transfer rate, allowing semiconductor memory devices to keep pace with faster generations of processors and controllers, thus supporting the accelerating data transfer requirements of multimedia and other high-bandwidths applications. Another high-flyer bites the dirt. One of the darlings of 1999's technology-driven rocketship we know as the NASDAQ, RMBS gave us some amazing momentum runs when its RDRAM memory was touted as the "only logical choice" for future PCs. Since the tech-wreck this spring, the landscape has changed significantly, with concrete evidence now in plain view, that the PC sector is slowing down. Then it seemed like there was a daily news story about which Semiconductor company was suing RMBS over intellectual property rights, threatening the company's revenue stream, which is almost entirely dependent on royalty payments. This situation will likely take some time to sort out through the court system, but now RMBS has a new problem to deal with. A rumor surfaced this morning that INTC was throwing in the towel on their upcoming Rambus-based products, removing one more leg from the stool. Although these were apparently just rumors, the fact that neither company would comment, just added to the negative bias and shares plunged early today, tagging $36.50 before finding any buying relief. The only positive news that has surfaced lately has been the overwhelming demand for the new Sony Playstation2 as we head into the holiday season. For those of you that don't know, the game unit is built around RMBS memory, and every unit sold will put money in the bank for RMBS. Although the buying pushed the stock up to almost $50 by midday, it wasn't meant to last, and shares settled lower by the close. The gap down this morning will likely present formidable resistance and we would look at a rollover near this level as an attractive entry point for new positions. Use the $50 level as your stop loss point as well. It will take a significant change in sentiment for RMBS to head through this level, and if it does, you can be reasonably confident that the recovery won't end there. But with slowing demand for its chips, rumors about INTC jumping ship, and the litigation burden hanging over its head, RMBS looks like it could give us a nice run to the downside. BUY PUT NOV-45*BYQ-WI OI=2567 at $6.00 SL=4.00 BUY PUT NOV-40 BYQ-WH OI=2083 at $4.00 SL=2.50 Average Daily Volume = 3.72 mln ********************** PLAY OF THE DAY - CALL ********************** ADBE - Adobe Systems $76.00 (+1.19 this week) A long-time leader in desktop publishing software, ADBE provides graphic design, publishing, and imaging software for Web and print production. Offering a line of application software products for creating, distributing, and managing information of all types, the company generates nearly 75% of sales through publishing software products such as Photoshop, Illustrator, and PageMaker. Its Acrobat Reader, which uses portable document format (PDF) is popping up all over the Internet, as businesses shift from print to digital Communications. Most Recent Write-Up When we started this play on Sunday, we mentioned that there was strong support at the $69-70 level, with the 5, 10 and 50-dmas in that area. Yesterday, with the market eschewing Tech stocks in favor of the old-line industrials, ADBE fell to support, allowing aggressive traders to take a position. The move down was despite coverage on ADBE initiated with a Buy rating and positive comments from Robert Stephens analysts Sasa Zorovic and Lowell Singer. For those who missed the buying opportunity yesterday, a morning dip today led to a bounce, with ADBE moving higher for the rest of the day on accelerating volume. The large spike in buying at the end of the day is especially bullish. Helped by news today of alliances with Interwoven, Nokia, and RealNetworks, ADBE managed to gain 9.25% with twice the ADV. A pullback to support at $75 could provide an aggressive entry point. A bounce off the 5-dma at $72.08 would be another possible entry point but confirm with volume. Consider setting a stop at $70 however, as a move below that level would likely see more weakness. Overhead, the next level of resistance can be found at $80, though a push through recent highs of $77.70 could be enough to offer a conservative entry point. Comments A broad rebound in the Tech sector Tuesday helped shares of ADBE climb higher throughout the day. The stock staged an impressive rally in the final thirty minutes of trading by gaining over $2 on robust volume. A return of that late-day buying could lift shares of ADBE above resistance at the $76 level. Aggressive entries could be had at the $76 level early Wednesday morning should the NASDAQ extend its recent rally. A momentum-based move backed by high volume above the aforementioned $77 level would provide a more confirming entry point. A pull back to support at the $74 level might provide a solid entry should the profit takers return early tomorrow. BUY CALL NOV-70 AXX-KN OI= 801 at $8.88 SL=6.25 BUY CALL NOV-75*AXX-KO OI=1443 at $6.00 SL=4.00 BUY CALL NOV-80 AXX-KP OI= 651 at $3.75 SL=2.50 BUY CALL DEC-75 AXX-LO OI= 114 at $9.63 SL=6.50 BUY CALL DEC-80 AXX-LP OI= 100 at $7.00 SL=5.00 Picked on Oct 29th at $74.81 P/E = 61 Change since picked +1.19 52-week high=$85.06 Analysts Ratings 4-7-2-0-0 52-week low =$26.69 Last earnings 09/14 est= 0.52 actual= 0.57 Next earnings N/A est= 0.29 versus= 0.46 Average Daily Volume = 2.01 mln ***********************ADVERTISEMENT************************ Get a NextCard Visa, in 30 seconds! 1. Fill in the brief application 2. Receive approval decision within 30 seconds 3. Get rates as low as 2.9% Intro or 9.9% Fixed APR http://www.nextcard.com/index6.html?ref=aff0049911 ************************************************************ ************************ COMBOS/SPREADS/STRADDLES ************************ A Treat On "All Hallow's Eve"... The market surged higher today, boosted by strength in technology issues as the group recovered from a recent sharp sell-off. Monday, October 30 The market ended mixed Monday as investors rotated money out of the technology sector into cyclical stocks. The Nasdaq closed down 86 points at 3,191 while the Dow finished up 245 points to 10,835. The S&P 500 index was up 19 points to 1,398. Trading volume on the NYSE reached 1.16 billion shares, with advances beating declines 1,875 to 1,019. Activity on the Nasdaq was moderate at 1.7 billion shares, with declines beating advances 2,234 to 1,764. In currency trade, the Euro rose against the dollar in the wake of the soft GDP data while in the U.S. bond market, the 30-year Treasury fell 7/32, pushing its yield up to 5.75%. Sunday's new plays (positions/opening prices/strategy): United Health UNH NOV95P/N100P $0.62 credit bull-put WellPoint WLP NOV95P/N100P $0.56 credit bull-put McLeoud USA MCLD DEC15C/DEC17C $1.62 debit bull-call Recoton RCOT NOV17C/NOV10P $1.50 credit strangle JDS Uniphase JDSU NOV60P/NOV90P $13.75 credit bull-put All of our new positions offered reasonable entry points during today's session. The new S&P 500 Index (hedge) position will be tracked with an initial cost basis of 1388. Portfolio Plays: Industrial stocks rallied today as investors rotated into old economy companies with steady earnings. In contrast, technology issues resumed their recent slide on continued worries about dwindling profits. Shares of traditional stocks also gained new support from the latest economic data that showed U.S. incomes and spending were up in September, at the fastest rate in nearly a year. Consumer spending has been one of the primary factors behind America's ongoing economic expansion and analysts believe that continued spending will help soften the effects of slower industrial growth. Among the Dow components, the top performers included aluminum producer Alcoa (AA), heavy equipment builder Caterpillar (CAT), chemicals giant DuPont (DD), International Paper (IP) and financial services firm American Express (AXP). At the same time, the Nasdaq slid lower amid worries over weak earnings in the technology group. The sell-off began early in the session after a major Wall Street brokerage cut its share price target for leading Internet network equipment-vendor Cisco Systems (CSCO). A Lehman Bros. analyst reduced the 12-month price target for Cisco on worries that Internet companies will slow down spending on technology. Cisco's decline put pressure on other Internet networking companies and makers of fiber-optic telecommunications gear also resumed their downward slide after being battered last week on Nortel Networks' reported weakness in equipment sales. Biotechnology stocks also dragged on the market as they slumped under the weight of a recent gloomy sales projection from sector giant Amgen (AMGN). In the broader market, basic materials companies and financial firms were among the top performers. Our portfolio produced widely mixed results during the volatile session. Blue-chip issues continued their recent rally while technology stocks fell amid a classic rotation to the old line companies on the Dow. Analysts attributed the sharp divergence in the market to month-end window-dressing, where money managers dump losing stocks and buy the winners before disclosing a list of fund holdings to clients. That effect was apparent in many of the leading technology issues, especially in the Networking and Internet sectors. Software maker Microsoft (MSFT) was one of the few Nasdaq bright spots, climbing almost $2 to finish near $70 after The Wall Street Journal reported Microsoft is considering investing more than $1 billion in media firm News Corp.'s (NWS) Sky Global Networks satellite TV unit. Our recent LEAPS/CCs play is off to a great start, but the position must be monitored for potential upside adjustments as the short (short) option is at $65. The majority of our successes came in the industrial group today. Bullish positions in Allstate (ALL), BellSouth (BLS) and Bears Stearns (BSC) all benefited from the upside activity. In addition, our transportation sector issues Federal Express (FDX) and Delta Airlines (DAL) enjoyed significant rallies, and both of these positions are now providing profitable, early-exit opportunities. In the small-cap group, Caremark RX (CMX) and Fairfield Communities (FFD) led the way and our recent straddle in Globix (GBIX) surpassed all possible expectations, providing a $4 profit on $6 invested as the issue fell to a low near $8 at the close of trading. Tuesday, October 31 The market surged higher today, boosted by strength in technology issues as the group recovered from a recent sharp sell-off. The Nasdaq closed up 178 points at 3,369. The Dow recorded its third consecutive triple-digit rally as investors rotated to blue-chip issues. The industrial average ended 135 points higher at 10,971. Trading activity on the Nasdaq was heavy at over 2 billion shares exchanged, with advances leading declines 2,778 to 1,257. Trading volume on the NYSE reached 1.34 billion shares, with broad market advances beating declines 2,058 to 890. In the bond market, the 30-year Treasury fell 15/32, pushing its yield up to 5.79%. Portfolio Plays: Technology stocks roared back to life today, similar to a classic scene from "Dawn of the Dead," as traders shopped for bargains in many of the recently downtrodden sectors. Blue-chip industrial stocks also extended their gains in a fourth consecutive session of upside activity, garnering momentum as the session progressed. The Nasdaq's bullish movement was led by advances in Networking and Internet shares, particularly in the business-to-business segment. Chip stocks managed solid gains and telecommunications equipment companies rebounded on news of better-than-expected earnings from Alcatel (ALA). France's telecom leader reported a record performance in the third quarter, underlined by strong gains in data and optical networking sales. In addition, Alcatel expects 2001 revenue growth to be higher-than-expected, with some indications showing growth of up to 25% in the company's telecom business. Among the Dow's upside movers were shares of General Motors (GM), Home Depot (HD), Intel (INTC), J.P. Morgan (JPM), and Boeing (BA). International Business Machines (IBM) also climbed higher after announcing a $3 billion share buy-back program. The rally in broad market issues was boosted by strength in retail, biotechnology and brokerage stocks. Cyclical issues consolidated after Monday's big rally, with chemical and paper shares falling on mild profit-taking. Major drug, utility, and consumer stocks also moved lower and oil service issues slumped amid a decline in December crude prices. Our portfolio was dominated by recovery gains in the technology group. Juniper Networks (JNPR) was the big winner, up over $28 to $195 as companies that sell fiber-optic networking equipment joined the rally in telecom issues. Other notable advances were seen in JDS Uniphase (JDSU), up $10; and Broadcom (BRCM), which also ended $10 higher. In the biotechnology group, Human Genome Sciences (HGSI) rallied $5.50 to finish at $88, EMC Inc. (EMC) topped the data storage sector, climbing almost $5 to $89, and Home Depot (HD) led the retail group, up $2 to close near $43. Strength in the finance group boosted our bullish position in Knight Trading (NITE) and drug sector gains produced a favorable rally in Ligand Pharmaceuticals (LGND). Read-Rite (RDRT) led the small-cap category, up almost $2 to 7.50 and there may yet be hope for our bullish (long-term) calendar spread. Questions & comments on spreads/combos to Contact Support ****************************************************************** - NEW PLAYS - The recent "blue-chip" rally has produced a number of requests for bullish credit spreads and today's rebound in technology issues suggests the market may have some upside potential in the coming sessions. While each of these plays offers a favorable risk/reward potential, they must also be evaluated for portfolio suitability and reviewed with regard to your strategic approach and trading style. ****************************************************************** CRGN - Curagen $64.63 *** A Big Day! *** CuraGen is primarily a genomics drug discovery and development company. Curagen, in collaboration with other companies and through its own internal programs, researches, develops and uses technologies based on the discovery of genes and their functions and relationships. The use of genomics technologies is intended to accelerate the discovery and development of consumer products to improve human and animal health, and agricultural products. The company's genomics technology and information systems have three primary systems, each of which is fully operational and has been commercialized. These are SeqCalling for gene sequencing and discovery of variations in gene sequences; GeneCalling, a patented technology for gene discovery and comprehensive gene expression analysis; and PathCalling for analyzing the function and relationships between genes (and the proteins these genes encode) in biological pathways. Early in October, CuraGen announced it will combine efforts with Gemini Genomics, an English biotech firm, on a new drug target discovery collaboration, which includes the application of the company's "PathCalling" technology. During the same week, CRGN officials announced they had licensed five new drug targets to Biogen, completing the research portion of the two companies' collaboration. This follows a long-term agreement with Abgenix, in which the two companies have selected a number of antibody drug targets for further evaluation and possible development as therapeutics for cancer and inflammatory diseases. As part of the five-year collaboration, CuraGen and Abgenix are planning to identify and develop up to 120 antibody drug candidates against cancer, inflammation and autoimmune diseases. Analysts say the speed at which these targets were identified validates the company's ability to rapidly deliver high-quality, novel drug targets and Lehman Bros. recently characterized the company as a "premier" genomics-based drug company with a broad range of technologies relating to genetic interpretation. The company's drug discovery partnerships are cost beneficial and CuraGen's revenue strategy, a program focused on discovering complex genetic diseases in oncology, inflammation and metabolic areas, is expected to provide excellent earnings growth in the coming years. With favorable premiums in the November options, this position offers an excellent speculation play for traders who are bullish on the issue. However, the stock is slightly over-extended and a brief consolidation is expected. Target a higher premium in the spread initially, and make adjustments as necessary to enter the position. BUY PUT NOV-45 CQX-WI OI=103 A=$0.56 SELL PUT NOV-50 CQX-WJ OI=350 B=$0.93 INITIAL NET CREDIT TARGET=$0.50-$0.56 ROI(max)=12% ****************************************************************** VRTX - Vertex Pharmaceuticals $96.06 ** Bracing For A Rally? ** Vertex Pharmaceuticals designs, develops and commercializes novel small molecule drugs that address significant markets with major medical needs, including the treatment of viral diseases, cancer, autoimmune and inflammatory diseases and neurological disorders. The company has discovered and advanced nine drug candidates into clinical development, including one product, the HIV protease inhibitor Agenerase (amprenavir), which has reached the market. Vertex has a broad product pipeline, with seven drug candidates in Phase II clinical development and significant collaborations with Glaxo Wellcome, Aventis, Schering AG (Germany), Eli Lilly, Kissei and Taisho. These relationships provide it with financial support and valuable resources for research programs for the development of its clinical drug candidates and for the marketing and sales of the company's marketed products. This company is simply one of our favorites for long-term stock portfolios and the demand for drug manufacturers has helped the issue remain relatively bullish in the midst of recent selling among a number of technology industries. Fundamentally, the outlook for Vertex is positive; revenues are expected to grow substantially in the coming year and the company's stock should see higher share values in the future. The current technical trend is favorable and we offer this position as a conservative drug sector play, based on the chart indications. Obviously, the issue is prone to a correction with the broad market but a reasonable cost basis exists near the previous support area at $70-$75. PLAY (conservative - bullish/credit spread): BUY PUT NOV-70 VQZ-WN OI=177 A=$1.31 SELL PUT NOV-75 VQZ-WO OI=1075 B=$1.81 INITIAL NET CREDIT TARGET=$0.62 ROI(max)=14% ****************************************************************** ETN - Eaton $68.31 *** On The Rebound! *** Eaton is a global manufacturer of highly engineered products that serve industrial, vehicle, construction, commercial, aerospace and semiconductor markets. Eaton's principal products include hydraulic products and fluid connectors, electrical distribution and control equipment, truck drive-train systems, major engine components, ion implant devices and a wide variety of controls. In early October, Eaton reported quarterly earnings that exceeded analysts' consensus estimates. The company's CEO said that third quarter results were consistent with the revised expectations and the performance, with operating EPS off only 3% from last year's record results, clearly shows the benefits of Eaton's business diversification, even with the incredibly volatile conditions in North American vehicle markets. He also commented that Eaton is expected to deliver record earnings for the year, despite the severe downturn in the heavy truck industry and that Eaton's new projections for fourth quarter results are generally in line with analyst forecasts. Axcelis Technologies, Eaton's 82%-owned semiconductor equipment subsidiary, turned in an outstanding performance during the most recent quarter and Eaton officials have announced intentions to divest its ownership of the company via a stock dividend. The Axcelis shares will be distributed to Eaton shareholders in the amount of approximately 1.15 shares of ACLS for each ETN share. The company's divestiture of its ACLS stock will be tax-free to Eaton and its shareholders, and the final ratio will be based on the actual number of Eaton shares outstanding on the date of record; December 6, 2000. Those of you who favor long-term ownership of a great blue-chip company like Eaton can use this position to establish a potential entry point in the issue, with limited downside risk. PLAY (conservative - bullish/credit spread): BUY PUT NOV-60 ETN-WL OI=3 A=$0.38 SELL PUT NOV-65 ETN-WM OI=0 B=$0.81 INITIAL NET CREDIT TARGET=$0.50-$0.56 ROI(max)=12% ****************************************************************** PCYC - Pharmacyclics $53.81 *** Earnings Rally! *** Pharmacyclics is a pharmaceutical company developing products to improve upon current therapeutic approaches to the treatment of cancer, atherosclerosis and retinal disease. The company's lead texaphyrin-based product candidates are XCYTRIN, a molecule to enhance the effects of radiation and chemotherapy in treating cancer; LUTRIN, a molecule for use in photodynamic therapy of cancer; ANTRIN, a unique molecule to treat atherosclerosis via photoangioplasty and OPTRIN, a molecule to treat age-related macular degeneration, which is a disease of the retina caused by growth of small blood vessels that can lead to blindness. PCYC has also developed CITRA VU, an oral magnetic resonance imaging contrast agent. In the past few months, Pharmacyclics has reported favorable results from clinical trials involving a number of drug products and bullish momentum from the news has boosted the issue to a new trading range. In addition, earnings are due on or about November 2 and most of the other companies in the group have exceeded analysts' consensus estimates with outstanding results. Our conservative position offers a method to participate in the outcome of the report with relatively low risk. PLAY (conservative - bullish/credit spread): BUY PUT NOV-40 QPY-WH OI=0 A=$1.00 SELL PUT NOV-45 QPY-WI OI=15 B=$1.43 INITIAL NET CREDIT TARGET=$0.50-$0.56 ROI(max)=12% ************************Advertisement************************* Tired of waiting on trades to execute? Does your broker offer Stop Losses on Options? Trade instantly with Stop Losses at Preferred Capital Markets Stop Losses based on the option price or the stock price. Move your trading into the next millennium with Preferred Capital Anything else is too slow! http://www.sungrp.com/tracking.asp?campaignid=870 ************************************************************** ********** DISCLAIMER ********** Please read our disclaimer at: http://www.OptionInvestor.com/page/oin/aboutus/disclaimer.html
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