Option Investor

Daily Newsletter, Monday, 04/23/2001

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The Option Investor Newsletter                   Monday 04-23-2001
Copyright 2001, All rights reserved.                        1 of 1
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MARKET WRAP  (view in courier font for table alignment)
        04-23-2001        High      Low     Volume Advance/Decline
DJIA    10532.20 - 47.60 10571.00 10483.60 1.02 bln   1244/1818	
NASDAQ   2059.30 -104.10  2118.77  2046.84 1.84 bln   1456/2413
S&P 100   633.89 -  9.77   643.21   629.85   totals   2700/4231
S&P 500  1224.36 - 18.62  1242.36  1217.47           38.9%/61.1%
RUS 2000  461.07 -  5.64   466.67   460.35
DJ TRANS 2794.13 - 67.17  2861.30  2785.71
VIX        31.50 +  2.49    32.62    30.46
Put/Call Ratio      0.60

A Novel Concept: Profit Taking

The major market averages pulled back Monday in what appeared to
be a natural reaction to last week's historic advance.  Although
the Nasdaq Composite (COMPX) shed triple digits in terms of
points, the sell-off came on relatively light volume and with
little conviction.  Roughly 1.8 billion shares traded on the
COMPX Monday, while just over 1 billion shares exchanged on the
NYSE; the 30-day averages for the two are roughly 2 billion and
1.2 billion, respectively.

The catalyst to take profits, in the tech sector, was delivered
by Joe Osha of Merrill Lynch.  Osha, in a research note Monday
morning, cut his intermediate-term ratings on several
semiconductor companies, which included Intel (NASDAQ:INTC),
Applied Micro Circuits (NASDAQ:AMCC), Vitesse Semiconductor
(NASDAQ:VTSS) and PMC Sierra (NASDAQ:PMCS).  Osha argued that
there isn't any proof that fundamentals in the chip business
are improving and that demand remains difficult to forecast.
While Osha conceded that the Philadelphia Semiconductor Index
(SOX.X) had most likely put in a bottom around 450 in early
April, his bearish comments this morning were in stark contrast
to what the famed chip analyst, Jon Joseph, said over a week
ago.  If my readers recall, Joseph issued bullish remarks on
Intel and several other chip manufactures about two weeks
ago, which set the SOX a light.

Now that Wall Street's sell-side is debating over the near-
term future of the semiconductor sector, we can instead refer
to price action in the chip space in search of clues.  Prior
to Monday's pullback, the SOX had ramped higher by nearly 50
percent in the space of about two weeks.  That was obviously
a very big move, and a little backing and filling is
necessary following a ramp of that magnitude.  What we need
to do now is set forth a few levels in the SOX to monitor in
order to either maintain a bullish stance or adopt a bearish
stance, and trade accordingly.  Furthermore, we can more
easily manage risk by monitoring the levels I'm about to
set forth in the SOX.

As my readers can see on the chart below, I've placed a
retracement bracket on the SOX's recent move off of its relative
lows at roughly 455, up to the 700 level last week.  A pullback
down to the psychologically significant 600 level makes sense,
and would coincide with the 38 percent retracement level.  I
would expect the real buyers in the chip sector to defend long
positions around the 600 level.  Shortly thereafter, we'll find
the 575 level, which marks a 50 percent retracement.  A break
below 575 might offer some quick, quality shorts in the chip
space in terms of risk-to-reward.  If traders were inclined to
zero in on some shorts in the chip space, it might be most
prudent to focus on the targets of Osha's downgrade Monday
morning, such as PMC Sierra and Vitesse.  A break below 575 will
most likely lead the SOX down to 530, which might the downside
target to cover shorts.  Of course, the SOX could bounce off of
any of the aforementioned levels, or possibly earlier, and
negate Osha's comments Monday morning.

The reason I go into such detail with the SOX is because I think
we can use it as an indicator for the Nasdaq, which was also due
for a pullback.  The first level I gravitate towards when looking
for support on the COMPX is 2000 - I'm pretty sure I'm not alone
on that!  A pullback to 2000 in the COMPX might very well
coincide with the SOX at 600, so we'll want to keep these two
levels in mind this week.  Below 2000, there's some serious
congestion around 1900 - 1920, which could provide support should
the COMPX break down below 2000.

As for the upside, the COMPX obviously has resistance around 2200.
But, instead of chasing stocks up as they run through resistance,
I think it's more prudent to scale in on pullbacks in this
current market environment.  I know that strategy wouldn't have
worked last week due to Greenspan's gift, but I think it will
work going forward.  In short, for those readers looking to add
exposure in tech, focus on the quality sectors and individual
issues and look for entry points on pullbacks to support levels.

I would also like to point out the overbought condition of the
COMPX as measured by stochastics.  I used the default settings
and you can see that fast stochastics (%K) rolled over last
Friday and accelerated to the downside Monday.  I normally don't
monitor stochastics very closely, but I thought it would be
prudent to mention the indicator at this juncture because of its
overbought nature currently.

Away from the Nasdaq, the Dow Jones Industrial Average (INDU)
bounced around the 10,500 level for the better part of trading
Monday and managed to ramp higher into the close.  The INDU
was buoyed by old-economy types, such as 3M (NYSE:MMM),
International Paper (NYSE:IP), Exxon Mobil (NYSE:XOM) and
Caterpillar (NYSE:CAT).  On a quick note, I think these types
of stocks will continue to do well in light of the Fed's
surprise move last week.  Exxon Mobil is not as sensitive to
interest rates as the other aforementioned issues, but it too
continues to work higher.  In fact, the majority of energy
related stocks I looked at today had very compelling charts
and continue to look strong, which may have been a product
of the exceptional earnings report issued by Exxon Mobil
this morning.  Nonetheless, the energy group continues to
trade very well.

In terms of technicals, the INDU has support at 10,500, which
it tested several times Monday.  The INDU did stage an
incredible rally last week following the Fed cut, and I
wouldn't be surprised to see the 10,500 level give way and
see the INDU subsequently trade down to 10,300.  The 10,300
level has been a significant site of support in the past, and
I would expect the real buyers to step in near that level.

There were a handful of earnings announcements after the bell
Monday, which are likely to impact trading and color market
psychology Tuesday morning.

Compaq Computer (NYSE:CPQ) reported its first-quarter results,
which fell short of consensus estimates by one penny.  Shares
of Compaq slipped by more than $1 in the after hours session,
but other box makers such as Dell Computer (NASDAQ:DELL) and
Gateway (NYSE:GTW) were only fractionally lower.

Novellus Systems (NASDAQ:NVLS), a chip equipment maker, reported
earnings that bested estimates by one cent.  Furthermore, its
officials guided earnings estimates slightly higher for the
next quarter, which is a good sign from where I sit!  Shares of
Novellus traded modestly higher in the after hours session.

In an interesting development, JDS Uniphase (NASDAQ:JDSU) said
it would hold a conference call Tuesday to discuss what its
officials called "important developments."  It's unlikely to be
an earnings warning because the company is slated to report its
quarterly numbers Wednesday.  The speculation was that JDS
Uniphase would announce an acquisition.  Nevertheless, shares of
JDS Uniphase shed another $1.50 in after hours trading, which
signaled to me that there's still some fear in the optical

While the nervousness surrounding the mysterious JDS Uniphase
announcement after the bell reinforces, to me, that there are
some shorting opportunities in the tech sector, I think Monday's
action was merely a regular pullback en route to consolidating
the last two weeks of big gains.  After all, the market doesn't
go in a straight line.  That said, the best course of action
might be to wait for solid entry points off of support levels
if readers are looking for bullish trades.  Conversely, should
support levels be taken out, such as the levels I outlined
above, we can adapt and look to profit from the short side,
which could very well happen in the short-term.

Aside from the possibility of profit taking and consolidation
in the near-term, from where I sit, the market appears healthy
and poised to trade higher over the intermediate-term.  And, I
have to admit, it feels good to be able to write about profit

Eric Utley
Assistant Editor

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AEOS - American Eagle Outfitters $36.66 +1.68 (+1.68 this week)

American Eagle Outfitters, Inc. is a specialty retailer of casual
apparel, accessories and footwear for men and women between the
ages of 16 and 34.  The company designs, markets, and sells its
own brand of versatile, relaxed, timeless classics like jeans,
cargo and T-shirts, under the American Eagle Outfitters and
Bluenotes brands, providing high quality merchandise at affordable
prices.  The company currently owns 556 American Eagle Outfitters
stores in 47 states and the District of Columbia.

Shares of AEOS have been soaring on the momentum of excellent
earnings reported on March 15, as well as better than expected
March store sales of $101.7 million reported on April 11. In
addition, the retail sector, RLX.X made a substantial 7% move up
with the broad market indexes on April 18, when the Federal
Reserve surprised the markets with a rate cut, and unlike
some of the other sectors which have sold off substantially,
RLX.X has held onto most of its gains since that point.  RLX.X
sold off by 1.6% today, but is firmly above both the 200 dma
of 840.23, and the 50 dma of 852.99.  Within the specialty
retail apparel sector, AEOS shines brightly, as the stock
has remained solidly above its 200 dma of $25.11 since October.
After failing to rally above heavy resistance at $40 in January,
AEOS dropped below its 50 dma in February, but since then,
its excellent earnings reported on March 15 propelled AEOS to
a series of higher lows at $24 on March 14, and $26 on April 3.
Compared to the year ago quarter, AEOS’s net sales increased
48.5% to $423.7 million, and net earnings increased 93% to
$93.8 million.  While some retailers faltered when same store
sales were reported on April 12, AEOS emerged undaunted with
a record increase in same store sales of 5.3%.  AEOS is now
in a strong upward channel, and after clearing resistance at
$34 last week, AEOS may be ready to clear heavier resistance
at $38.50 and $40.  After today’s strong move, AEOS may likely
consolidate at current levels, which could be a good entry
point if RLX.X is exhibiting strength.  Another strategy could
be to take a position upon a strong move above $38.50 with
heavy volume.  Watch other specialty apparel retailers like
GPS, and LTD and set stops at $34.  We will close positions if
AEOS closes below this price.

BUY CALL MAY-35*AQU-EG OI=192 at $4.30 SL=2.50
BUY CALL MAY-40 HUJ-EH OI=313 at $1.90 SL=1.00



QCOM - Qualcomm Inc. $58.20 -5.63 (-5.63 this week)

Qualcomm Incorporated is a leader in developing, delivering, and
enabling innovative digital wireless communications products and
services based on the Company's digital technologies.  As the
pioneer of Code Division Multiple Access (CDMA), the technology
of choice for next-generation wireless communications, Qualcomm
continues to lead the industry in the development of voice, data,
and wireless Internet products and solutions.  Qualcomm is also
transforming industries through its various satellite businesses
and technology partnerships.

It appears for now that sentiment surrounding earnings reports
from European cell phone companies along with profit taking in
the NASDAQ are moving shares of CDMA giant Qualcomm.  Despite a
stellar earnings report from cell phone handset leader Nokia,
which beat analyst expectations and was bestowed an upgrade from
Deutsche Alex Brown, traders in the Wireless sector focused more
on laggard Ericksson's woes, as the company announced a quarterly
loss on Friday.  At this point it looks as if there may be major
changes in ERICY's top management, speculation which the market
did not look fondly upon.  Add to that a weak day for the NASDAQ
and it's no wonder the sellers were in control, as a lack of
buying interest combined with the shareholder exodus resulted in
a drop of almost 9 percent in QCOM stock today.  News that the
company signed a development license agreement with computer
video firm Teranex was largely ignored and with today's close,
the stock now finds itself back below its 5 and 50-dma (at $59.57
and $59.06 respectively).  A failed rally above these levels
could allow aggressive traders to take a position, but confirm
with selling volume.  Horizontal resistance may also be found at
$60, $62 and our closing stop price of $63.  A more conservative
play would be to wait for a break below $57.85 on volume,
provided that sector peers NOK and ERICY are also heading lower.
As one of the larger stocks in the NASDAQ 100, be sure to keep an
eye on the triple-Q’s, as movement in the large cap Tech stocks
may provide clues in ascertaining QCOM's movements.

BUY PUT MAY-60*AAO-QL OI=1582 at $7.00 SL=5.00
BUY PUT MAY-55 AAO-QK OI=3476 at $4.50 SL=2.75


PMCS - PMC-Sierra, Inc. $38.76 -6.05 (-6.05 this week)

PMCS designs, develops, markets and supports high-performance
semiconductor networking solutions.  The company's products are
used in the high-speed transmission and networking systems,
which are being used to restructure the global
telecommunications and data communications infrastructure.
Providing components for equipment based on Asynchronous
Transfer Mode, Synchronized Optical Network, Synchronized
Digital Hierarchy, High Speed Data Link Control, and Ethernet,
the company sells its products to over 100 customers either
directly or through its worldwide distribution channels.

Dragged lower with the decline in the broader Networking sector
that began on Labor Day last year, PMCS heaped more misery on
its own head with its January earnings report and dismal
forecast for the remainder of the year.  By that time the stock
was a mere shadow of its former self, trading at a mere $75 per
share vs. the $240 price tag it sported in late August.  That
earnings warning started the next leg of the downtrend, pushing
PMCS as low as $19 in early April before the stock began to
recover on the back of strength in both the Networking index
(NWX.X) and the Semiconductor index (SOX.X).  The rallies in
those particular sector are looking a bit tired right now, and
should they roll over, they would almost certainly drag our new
play down with them.  The company's most recent earnings report
last Thursday met the twice-lowered expectations, and was met by
a slew of upgrades from the likes of Salomon Smith Barney,
Robertson Stephens, Goldman Sachs and JP Morgan.  The upgrade
euphoria didn't last long though, and the buyers were stopped
cold at the $50 resistance level on Friday.  The straw that
broke the camel's back was Joe Osha downgrading numerous Chip
companies this morning, including PMCS, and after the gap down
open, the stock continued to deteriorate, losing more than 13%
by the close.  The icing on the cake for our play is what is
happening with the daily Stochastics oscillator.  It is
currently rolling over from the overbought zone, putting the
finishing touches on some nice bearish divergence relative to
the January highs.  We could see a bit more buying interest in
the next couple days, but would look at that as a more
attractive entry point, so long as the stock doesn't trade
through our $45 stop (set right at the top of this morning's
gap).  Aggressive traders can consider entries on a failed rally
below the $45 level, while more conservative players will want
to wait for a drop through the $38 intraday support level.  Of
course, we want to keep an eye on the NWX and SOX indices, as
strength or weakness in these sectors will directly impact our

BUY PUT MAY-40*SQL-QH OI=1091 at $6.00 SL=4.00
BUY PUT MAY-35 SQL-QG OI=2434 at $3.50 SL=1.75
BUY PUT MAY-30 SQL-QF OI=4055 at $1.90 SL=1.00



ABT  - put play
Adjust from $46 down to $45

IMCL - put play
Adjust from $41 down to $40

IVGN - put play
Adjust from $66 down to $64

PDLI - put play
Adjust from $60 down to $56


ORCL $17.15 -2.60 (-2.60) We are closing out our call play on
Oracle tonight, courtesy of a downgrade by Lehman Brothers
analyst Neil Herman, who cut shares of the eBusiness software
maker from a Strong Buy to a Buy rating.  As well, Herman lowered
his earnings estimate for fiscal year 2002, citing slowdown in
SUNW server sales leading to lower revenues for ORCL.  With that,
the stock gapped down at the open and by the end of the day, fell
over 13 percent on 1.2 times the average daily volume.  Closing
below its 5 and 50-dma (at $18.27 and $17.85 respectively) as
well as our stop price of $18, we are no longer recommending
positions in this play.

AGIL $18.35 -2.74 (-2.74) AGIL has been a wildly enjoyable play
over the past 2 weeks, with the stock gaining nearly 100% since
we picked it on April 4th.  The stock lead the entire Software
sector in its recent rally, but the bulls have been looking a
bit tired in recent days, as the volume has continued to
decline.  Sure enough, profit taking appeared early this
morning, pushing our play down through our $20 stop in the first
30 minutes of trading.  Volume was even weaker today, and buyers
never really showed up at all.  While this may only be a brief
rest before the uptrend continues, our violated stop forces us
to bid a fond farewell to another winning call play.

RIMM $30.80 -5.36 (-5.36) RIMM offered us good gains since we
picked it on April 12th at $28.27, as the stock has been riding
on the momentum of stellar earnings, as well as a broad based
recovery in the Nasdaq.  However, a few analysts seem to have
spoiled the party, at least on a temporary basis, for
technology stocks.  A downgrade of Oracle by Lehman Brothers as
well as continued concerns about recovery in the semiconductor
sector led to profit taking on Monday, albeit on somewhat lower
volume than last week.  RIMM was unable to hold above our stop
level of $35 today, and as such, we are dropping the play


No dropped puts tonight


Dow Theory
By Molly Evans

"There is always a disposition in people's minds to think that
existing conditions will be permanent.  When the market is down
and dull, it is hard to make people believe that this is the
prelude to a period of activity and advance.  When prices are up
and the country is prosperous, it is always said that while
preceding booms have not lasted, there are circumstances
connected with this one which make it unlike its predecessors
and give assurance of permanency."  --- Charles Dow, June 8,

Almost one hundred years ago, Charles Dow, father of the Dow
Jones Industrial Average and cofounder of the Wall Street Journal
wrote This insightful bit of prose in an editorial for his column
"Review and Outlook."  Oftentimes, one needs look no further than
a decent history book to glean awareness of where we stand in
this speck of the expanse of time.  Dow's perceptions of the
market holds truth to this day.  It is fitting to revisit the
pages of history to appreciate that which we have evolved and
might even anticipate in the coming months and years ahead.
This article will be the first of what will probably be three
parts in examining Dow Theory and applying it to today's

Charles H. Dow (1851- 1902) was born in rural Connecticut and
spent His entire life working in the newspaper business.  Dow
preferred research and analysis and hence was quite satisfied
to be assigned the coverage of mining companies stocks for the
New York Mail and Express.  His financial editorials were
reportedly the first in a daily press.  In 1882, Dow and his
buddy, Eddie Jones broke out on their own to start their own
news reporting business, focusing on the stock market and using
messenger boys to deliver their paper. Their first office was
founded underneath a soda-water establishment in the basement
of 15 Wall Street though they spent most of their days visiting
bankers, financiers and members of the NYSE.

To track the market's movements, Dow created the Dow Jones
Averages, which first appeared on July 3, 1884 using 11
representative stocks.  Later he increased that number to 20 and
then to 30 in 1887.  In the summer of 1889, the two founded The
Wall Street Journal selling copies of the paper to their 1500
subscribers for $0.02 a copy.

Dow proved to be a brilliant market observer and investigative
reporter.  While he never issued that his observations were "Dow
Theory," those who would later reference and chronicle his
commentary coined the phrase.  In essence, what is known today
as Dow Theory is an evolution of the many market impressions by
Charles Dow and those who would sustain the tutelage born of
those initial editorials in the little Wall Street Journal.
Namely: Dow's understudy, William P. Hamilton, Robert Rhea who
was a devoted disciple to Hamilton, E. George Schaefer, and in
this present day, Richard Russell.

Dow Theory is composed of six assumptions:

1.  Price movement represents the aggregate knowledge of Wall
Street and, above all, its aggregate knowledge of coming events.
In other words:  The Averages Discount Everything.

In the words of George Hamilton, "The market represents
everything everybody knows, hopes, believes, anticipates, with
all that knowledge sifted down to what Senator Dolliver once
called, in quoting a Wall Street Journal editorial in the
United States Senate, the bloodless verdict of the market place."

2.	There are, simultaneously, three movements in progress in
the stock market.  The first is the primary or Secular trend.
The primary trend can be either bullish or bearish depending on
the course of higher highs or lower lows.  These trends tend to
run over the course of at least four years and often much longer.
Coincident in this or in the course of it is a secondary trend,
which is represented by sharp rallies in a bear market and sharp
reactions in a primary bull market.  These intermediate trends
can be expected to last from two weeks to a month or more and
will reclaim approximately one-third to two-thirds of the
previous secondary trend.  The tertiary trends are those that are
the intra and inter-day trends.  Dow cautioned that the day-to-day
fluctuations were deceptive for speculation in individual stocks.

Dow had a gift for putting it into relative terms for the reader
to easily grasp.  This is how he explains the above two concepts:

"The cycle of trade is well known.  Beginning with a period of
depression, the small dealer finds himself unable to buy the
amount of goods required for hand-to-mouth trading quite as
cheaply as when the previous purchase was made.  He, therefore,
buys a little more.  The aggregate of this buying increases the
business of the jobber, and this swells the output of the
manufacturer, who is enabled to employ more labor, resulting in
larger purchases by labor of manufactured goods and agricultural
products, which brings the circle round to the producer."

When this cycle is multiplied by the millions, the demand becomes
seemingly inexhaustible to which the a furor is then found on
Wall Street for speculation in such manufacturers.

"The (subsequent) declining period is accompanied by steady
reversal of these varied transactions.  When the retailer and
the jobber find that goods cost less than before, they shrink
purchases.  When purchases in advance of requirements bring loss
and not profit, they bring also loss of confidence and curtailment
of demand.  As the process of shrinkage goes on, it touches all
points of trade.  It is a kind of flame, which creates the fuel
that is burned.

Experience has shown that it takes about five years for one of
these cycles to complete itself.  It takes approximately five
years for the country bare of stocks to become the country
filled with stocks, and it takes about five years more for the
overstocked markets of the country or of the world to become
practically bare.

As the stock market is always an effect and never a cause, it
must respond to these conditions.  As, however, the stock market,
while an effect, is also a discounted effect, the decline in
prices of stocks, usually anticipates decline in commodities,
because operators for a fall sell in anticipation of the
changes which they foresee in business conditions."

Next week we'll examine the other four assumptions:

3.  Primary Trends Have Three Phases.
4.  The Industrials and the Transports Confirm Each Other.
5.  Volume Confirms a Trend
6.  A Trend Remains Intact Until It Gives a Definite Reversal

See you then.


References: Krass, Peter; The Book of Investing Wisdom:
Classic Writings By Great Stock-Pickers and Legends of Wall
Street; John Wiley & Sons; New York; 1999.

Richard Russell, The Dow Theory Letters.com

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IMCL - Imclone Systems Inc. $38.03 (-1.87 this week)

Imclone Systems Incorporated is advancing oncology care by
developing a portfolio of targeted biologic treatments, designed
to address the medical needs of patients with a variety of
cancers.  The company's three programs include growth factor
blockers, cancer vaccines and antiogenesis inhibitors.  Imclone
Systems' strategy is to become a fully integrated
biopharmaceutical company, taking its development programs from
the research stage to the market.  Imclone Systems is
headquartered in New York City with manufacturing facilities
in Somerville, New Jersey.

Most Recent Write-Up

Imclone sold off today in a weak sector within an overall weak
market.  The biotechnology (BTK.X) and drug (DRG.X) sectors both
sold off significantly since the surprise rate cut on Wednesday,
and Imclone has been one of the victims of this sell-off.  DRG.X
has now dropped below its 50 dma of 391.01 and appears poised to
possibly fall below strong support at the 365 level, which could
be the short term kiss of death for weaker stocks in the health
care sector.  In addition, BTK.X is only a few points above its
own 50 dma of 521, and has little support beneath this level.
On April 3, Imclone reported Q1 results with a much wider loss
than expected of 52 cents per share, due to much lower revenues
of $153 thousand, vs. $1.1 million the prior year.  While IMCL
rallied subsequently, tagging along with the biotech index,
and the anticipation of a new patent to be granted, the tide
seems to have turned this week.  Without a strong catalyst, IMCL
is likely to fall in the near term, as investors have found
new interest in the financial and computer technology sectors.
In addition, the biotech sector suffered today on the news that
DNA's experimental drug Veletri, failed to meet Phase 3 trial
objectives.  After falling below the 200 dma of $42.86, IMCL has
formed a series of lower highs and roll overs from $42.50 and
$41.50.  The most likely scenario from this point seems to be
a roll over from $39 with strong volume, which could be a
good entry point, and take IMCL to the next support at $38.50.
A drop below this level could bring IMCL to $35, and could be
another potential entry point.  We are setting stops at $41, so
close positions if IMCL closes below this point.


The biotech sector continues to trade poorly, and IMCL is no
exception.  The stock closed very heavily Monday and is poised
to work lower this week.  For its part, the Biotechnology
Sector Index (BTK.X) is poised to test the 500 level, which
should drag IMCL lower.  Look to enter new put positions at
current levels early Tuesday morning, confirm weakness with a
break below the $37.75 level and target $35 on the downside.

BUY PUT MAY-40*QCI-QH OI=471 at $5.20 SL=3.25
BUY PUT MAY-35 QCI-QG OI=454 at $2.80 SL=1.50


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Option Investor Inc is neither a registered Investment Advisor nor a Broker/Dealer. Readers are advised that all information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All opinions, analyses and information included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we do not necessarily update such opinions, analysis or information. Owners, employees and writers may have long or short positions in the securities that are discussed.

Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report and website should be independently verified.

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Option Investor Inc
PO Box 630350
Littleton, CO 80163

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