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Daily Newsletter, Wednesday, 05/01/2002

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The Option Investor Newsletter                Wednesday 05-01-2002
Copyright 2001, All rights reserved.                        1 of 2
Redistribution in any form strictly prohibited.

Posted online for subscribers at http://www.OptionInvestor.com
*******************************************************************
MARKET WRAP  (view in courier font for table alignment)
*******************************************************************
      05-01-2002          High     Low     Volume Advance/Decline
DJIA    10059.63 +113.41 10086.61  9830.67  1.45 bln   1929/1215
NASDAQ   1677.53 - 10.70  1687.56  1643.24  2.18 bln   1649/1850
S&P 100   538.53 +  6.13   539.58   526.43   Totals    3578/3065
S&P 500  1086.46 +  9.54  1088.32  1065.29             
RUS 2000  510.83 +  0.16   512.07   502.58
DJ TRANS 2743.66 + 38.94  2760.45  2654.20
VIX        22.26 -  1.25    24.33    21.92
VXN        44.00 +  0.24    45.56    42.95
TRIN        0.61
PUT/CALL    0.72
*******************************************************************
Interesting Day Continued
By Buzz Lynn
buzz@OptionInvestor.com

Hope you caught Monday night's Wrap that suggested despite the 
Dow's move under 10,000, it was looking like it was ready for a 
bullish move.  Boy, Howdy!

Now, I haven't changed my stance one iota that this is a bear 
market.  I still think that.  But, I am also mindful of the fact 
that "markets fluctuate", as J.P. Morgan used to say.  There are 
always bullish moves within a primary bear market just as there 
were bearish moves within the primary bull market of yesteryear.

So how did we know a bullish move was coming when all the market 
was in despair?  We didn't know for sure, but the charts were 
pretty telling that the near-term bear needed a rest.  We'll get 
to those in a minute.

But what exactly happened today?  In a nutshell, bad (OK, mildly 
negative) economic news failed to spark a continuation of 
yesterday's rally.  The ISM numbers, where purchasing managers 
weigh in on the future of their business took a small dip from 
55.3 to 53.9.  This was a bit more than expected, but still better 
than the neutral of 50.0.  In other words, the economy is still 
anticipated by production managers to grow.  But bears, being what 
they are, tried to capitalize on the bad news.

Right along with that "bad" news came news that construction 
slowed a bit, Sun's (SUNW) COO would resign, and that ORCL's 
estimates were cut by Lehman.  Using that as some semblance of an 
excuse to sell, sell they did to where the Dow as down nearly 130 
points from yesterday's close while the SPX dropped nearly 10 
points too.  But the bears simply lacked the horsepower 
(conviction) to pull the indexes down past yesterday's lows - in 
other words a higher low.

If you are trading for the moment bearish and see that the market 
isn't going to fall below previous support, and the candles form a 
higher low, what's the first thing you do?  Right!  Cover!  
Remember, this isn't about investing, this is about trading.  In 
case anyone is wondering, speculation is alive and well, which 
acts as a reminder that the bears' job is far from done.  

In fact, it will not be complete until every last pair of horns 
has been clipped and bulls are long gone from the market.  You'll 
know a true bottom when stocks actually represent good business 
VALUES with an economic return and are not treated as speculative 
pieces of paper (which is still all they are in the current 
environment).  Give it a few years.  Until then, mini-bulls and 
mini-bears will ensue until the values are firmly in the basement.  
Sorry to sound harsh, but I was right to sit on and break my rose-
tinted lenses a year and a half ago.

So is it back to the bull market with party hats and horns, "Happy 
Days Are Here Again", and 20% daily moves in the market darlings?  
No way.  The bear is patient, and being that this is a bear 
market, it's just another opportunity for the bears to short deep 
into their dens once oscillators reach overbought.  But until 
then, Goldilocks can hang with the wrong crowd and party with the 
three bulls.

On to the charts!

Dow industrial chart - INDU (weekly/daily/60):


 

Quick comment:  upturned over 20% daily stochastic, higher low, 
break over previous 10,040 resistance.  Bullish, but waiting for a 
60-min stochastic return to oversold at or near candle support to 
enter calls.

NASDAQ chart - COMPX (weekly/daily/60):


 

Comment:  Not so hot here - debatable as to whether or not this is 
a higher low.  However, stochastics have turned up from 
overbought, but with less vigor.  I'm staying away from tech 
stocks, as I believe they have much more to correct given pervious 
(and still) lofty multiples.  Bullish play if you want to risk 
selective issues.  See call entry comments in the Dow industrial 
section above.  Not my favorite.

S&P 500 chart - SPX (weekly/daily/60):


 

Comment:  Similar to the Dow.  Higher low, daily stochastic break 
from oversold above 20%.  Levels on 60-min chart are tradable in 
my opinion.  Call entry criteria same as above.

Bullish for life?  NOT!  The VIX has shed 4 points in 2 days - way 
too optimistic in my view.  While volume was strong, the 
advance/decline line is not convincing.  However, the daily 
stochastic coupled with the daily candles' desire to return to the 
mean might keep call traders happy for a while.  Still the 60-min 
charts stochastics suggest waiting for an intraday break to 
oversold before call entries becomes prudent.  Bulls will be 
bulls, but the bears still rule.  What appears to be tradable 
bullish run will ultimately end up a short opportunity for those 
who recognize the underlying and patient bear.  If support gets 
broken, I would take that as a cue to consider exiting calls, the 
reason being that the bear will have likely head-faked us again, 
which is not all that surprising.

Think of this as the dawn of Spring.  Those cute little green 
sprigs popping up on brown branches will be toast with one night 
of frost.  The green needs some seasoning before it can withstand 
the unexpected cold.  It's too early to start counting the cash 
from the crop that has yet to mature.

See you at the bell.


********************
INDEX TRADER SUMMARY
********************

VOLATILITY COMES BACK
by Leigh Stevens

TRADING OUTLOOK AND STRATEGY -

A real roller coaster ride today! The talking heads were all 
talking volatility today.  Yesterday, I was cautiously optimistic 
that the rally that began on Tuesday could carry further if the 
Indices broke out above the intraday highs that formed the top 
end of consolidation patterns on the hourly charts. 

These levels were: SPX at 1080-1082, OEX at 535-536 and the DJX 
breakout point at 100. These pivotal resistance levels were 
exceeded today and prices carried higher after the breakouts. 
However, this was AFTER the indices retreated again to the area 
of recent lows in the morning. The fact that lower lows were not 
seen prompted a short-covering rally. 

It was also suggested that lows again occurring around the bottom 
of the hourly downtrend channels would aging be areas to buy, 
especially with the hourly stochastics at lows again. You may 
also recall that my thought was that pullbacks would hold ABOVE 
the lows for a time. And, that, "after this rally runs further 
possibly, new lows are anticipated."  Time will tell on this  
future, but it's still what the bigger picture suggests.

The possibility of another sharp downside drop was there, but 
traders would have needed to be nimble to exit at the lows. Hope 
some were and may you be QUICK in this market!  For those not 
living and breathing the hourly action, it's a bit easier to 
define support area right now as we have those nearby channel 
lines to target as the market is oversold on 2-week (14-day) 
basis on oscillators like stochastics and RSI.   

As the afternoon rally gained momentum and more volume started 
coming in, these breakout points were then penetrated in the 
afternoon. Yesterday, the charts that looked the most bullish 
were the Nasdaq -- WRONG!, for today, as the NYSE stocks led the 
way higher and the Nasdaq indices did not penetrate the breakout 
points.  

The pattern has continued where rallies fall apart once 
overbought levels are reached on the most short-term, a "5" 
setting, in the hourly stochastics indicator. At these prices 
level, rather far extended under the 21-day moving average useful 
for trading, the reverse has been occurring this week -- when the 
5-hour stochastic has gotten into oversold territory, sharp 
rallies have developed.    

The breakout points for the Nasdaq Indices remain the same: 
the Nasdaq Composite (COMP) at 1694-1695; Nasdaq 100 (NDX) at  
1290 and QQQ at 32.1-32.2. Besides being oversold on a price 
basis, the Nasdaq is oversold in terms of the 10-day 
advance/decline indicator shown at bottom. 

The problem that exists with getting a Nasdaq rally going is 
really to be seen in the ongoing weakness in key Nasdaq stocks 
INTC, MSFT, CSCO, QCOM and ORCL.  However, there are some 
technical indications that these stocks could reverse to the 
upside in the near-term, at least for awhile. Intel, Microsoft 
and Intel, while making slightly lower 3-month lows, have bullish 
RSI divergences, as the Relative Strength Index has not followed 
prices in going to a new low reading; Oracle is nearing the low 
end of its downtrend channel on the daily chart. All are oversold 
on a 2-week basis.  The forgoing RSI/Price divergence suggests a 
propensity to reverse, but the momentum is still down.  

S&P 500 (SPX) Daily/Hourly Charts: 


 

S&P 500 (SPX) has an upside objective to the 1100 area, but if 
this is realized, it will likely occur after another dip given 
the overbought readings in the hourly oscillators.  Keep in mind 
the backdrop of the crossover buy signal on the daily stochastic.  

If the rally takes SPX to the 1100 area with the hourly 
oscillators still in overbought territory, this sets up another 
short-term put play. 

Sell rallies to the 1100-1103 area.  An hourly close above 1103 
is a bullish positive - a daily close over 1107, at the 21-day 
moving average, even more so.  This suggests using 1107 as the 
closing stop point -- exit puts there, looking to re-short at 
higher levels.  

S&P 100 (OEX) Daily/Hourly Charts: 


 

An S&P 100 (OEX.X) bjective is to 545-546, at the top end of the 
hourly channel. Also, 545 appears as key resistance implied by 
the prior lows -- at the dashed level line on the daily chart.  
My suggested strategy is look for a bearish play in this area.  

Am hourly close above 546, would be bullish and suggest the 
possibility that OEX could rally a bit further.  The 21-day 
moving average at 553 should act as a deflection area and high-
potential put play opportunity, if reached. 

Another pullback, to again create an oversold reading on the 
hourly stochastics might not be as steep as drop today, as the 
bears are a little more cautious and there are some traders 
willing to step up to the plate to do some buying on dips.  

DJX - 
The 101.50 area looks like key resistance.  An hourly and daily 
close over this level would set up some further upside 
objectives. The 99 area looks like near support. 

Nasdaq Composite (COMP) - 
The COMP has to clear 1694-1695 to achieve a bullish near-term 
breakout. Next resistance is in the 1724 area, at the prior 
hourly lows from 2 weeks past.  The 1740 area is the top of the 
hourly downtrend channel currently and looks like the high-
potential area to take out puts again. 1748 is key resistance 
implied by the 21-day moving average. 

Nasdaq 100 ($NDX.X) - 
The breakout point for the Nasdaq 100 (NDX) is 1290. Put option 
plays in the 1325-1330 resistance zone look to have high 
potential. 

Nasdaq 100 Trust Stock (QQQ) Daily/Hourly Charts: 


 

In QQQ the breakout point is 32.1-32.2, which sets up some 
possible further upside to around 33, which is key hourly 
resistance.  Sell rallies, buy puts in the 33-33.5 area, looking 
for another short-term downswing. A daily close over 33.5, at the 
21-day moving average would cause me to exit however, looking to 
do a bearish play from a higher level. [Would love to have an 
opportunity to short in the 35-36 area. Hey, I can dream, cause 
that trade would be a lay up.] 

Recent trading suggestions in Index Trader -

Recent trade suggestions centered on taking partial profits on 
put positions, around the levels specified below. Also suggested 
was the purchase of Index Calls in the same areas, as a short-
term countertrend trade. Trades also suggested for when price 
declines were coupled with upside momentum buy signals intraday 
(hourly stochastics): 

Purchase SPX (S&P 500) calls in 1060-1063 area. 
OEX (S&P 100) in 525-527 area
Buy DJX in 98 area

Sunday 4/28: identified COMP support in 1645 area
Nasdaq 100 ($NDX.X) - buy in 1233-1230 zone
QQQ: Sunday 4/28: Buy QQQ on dips under 31   


Long/Call Positions:

Date: 
Bought XXX Calls at 
Stop: 
Trade Objective: 
Comments: 

Short/Put Positions: 

Date: 
Bought XXX Puts at   
Stop or risk parameters: 
Trade Objective: 
Comments:


MAJOR MARKET INDICATORS: 


 

Advances - Declines Oscillator -

To construct, we calculate daily how many stocks advanced on the 
day versus how many declined and obtain either a positive or 
negative number. Plotted as an indicator, it one of the more 
reliable of the general market indicators useful in helping 
identify key secondary or primary market bottoms and market tops. 
Reversals tend to occur when extreme points are reached on a 10-
day basis. [On Q-Charts, the symbols are ADVDEC.NQ (Nasdaq) and 
ADVDEC.NY for the NYSE]

Explanation of construction and use - 

The plot of the 10-day moving average of the daily net difference 
between advancing and declining stocks can be used as a type of 
overbought or oversold market indicator.  To construct it, we 
simply take the daily difference between the total number of 
stocks advancing and the stocks declining on the day, which 
results in either a positive or negative number. A simple 10-day 
moving average of the daily net Advances minus Declines (A-D) 
tends to fluctuate in a fairly predictable range, with the 
extremes of that range tending to hit certain reoccurring levels. 
From these extreme points, market reversals often follow, often 
with a lag. 

We can consider the lower extremes to mark an  "oversold" 
condition in the market and the upper extreme points to signify 
an "overbought" situation in the market.  The NYSE and the Nasdaq 
markets tend to see movements in tandem, but they can diverge, 
which is why I do not take a sum of the two figures, but plot 
them separately.  


Leigh Stevens
Chief Market Strategist 
lstevens@OptionInvestor.com 


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***********
OPTIONS 101
***********

Skewing The Odds In Your Favor
By Mark Phillips
mphillips@OptionInvestor.com

After introducing the concept of volatility skew last week, along
with the basics of what a "smiling skew" looks like, I promised
this week that we would take our newfound knowledge and show how
to apply it to improve our chances for profit, especially when
implementing various spread trades.  If you missed last week's
introduction, you can review it Here.

Since we're going to be talking about spread strategies that some
of you will be unfamiliar with, I'll point you to a few
spread-related articles that I wrote last year.

More Details on Spread Strategies
To Spread or Backspread...That Is The Question
Call Ratio Backspreads - The Final Chapter
More Corrections and a Kickoff for Butterfly Spreads
The Long Butterfly Spread - Picking the Right Candidate
Spreads - The Final Installment (The Short Butterfly)

Alright, now that everyone is on the same page, let's dive back
into the skew effect.  Recall from last week that volatility skew
simply refers to the fact that the volatility of options on a
given security (and for a given expiration cycle) will usually
have differing volatilities.  One of the most common scenarios
is called a "smiling skew", where volatility rises as you move
away from the ATM strike.  I had planned to continue our
discussion with a specific example this week, but I'm going to
keep it hypothetical to try and eliminate the urge to find a
trade within our discussion.  The process of understanding how
the concept of volatility skew works is far more important and I
want to keep everyone focused in the educational vein -- at least
for this week.

Since we showed last week that the effect is the same whether we
are talking about Puts or Calls, I'm only going to focus on calls
today.  Just remember that the concept works either way.  Normally
the factor that will push us one way or the other (puts vs. calls)
is that we will select whichever option (all puns intended) gives
us the more favorable pricing for the spread (maximum credit or
minimum debit).

Remember that we are using the concept of "flat skew" as our
baseline, and from last week's article, it would look like this
for calls on a hypothetical stock, ABC currently trading at $50.
Note that I have also listed the hypothetical option prices here.

Calls:
Strike   40    45    50    55    60    65
IV(%)    55%   55%   55%   55%   55%   55%
Price    7.0   6.0   5.0   4.0   3.0   2.0

Now if we just change the skew on the stock from flat to smiling,
look how things would shape up.

Calls:
Strike   40    45    50    55    60    65
IV(%)    57%   53%   51%   54%   58%   63%
Price    7.5   6.2   5.0   4.2   3.4   2.8

As I mentioned last week, this may not seem significant if you
just buy calls for a directional trade.  But for spread traders,
taking advantage of this skew pattern can really stack the odds in
their favor.  Let's look at a quick example with a simple Bullish
Call Spread, where we are buying one strike and selling a higher
strike.

Let's assume that we buy the $50 call and sell the $60 call in the
flat skew scenario.  Our net cost for the trade would be ($5-$3),
yielding a position with $2 of risk (our initial cost) and a
maximum potential profit of $10 (excluding commission costs).  A
reward/risk ratio of 5:1 may seem alright to you, but I like to
stack the odds a bit more heavily in my favor.  Look what happens
if we take advantage of the skew effect.

With the pricing shown in the smiling skew table above, the same
spread would shake out as follows.  Buy the $50 call and sell the
$55 call for a net cost of ($5.00-$3.40) to yield a total cost of
$1.60.  The potential upside for the trade is still $10, so now
our reward/risk ratio is 6.25:1.  The other nice thing about this
scenario is that our total risk in the trade has been reduced
from $2.00 to $1.60.

The skew effect can be used for any type of spread we might
choose to initiate.  Let's look at a ratio call spread now.
Recall that a ratio spread consists of buying the near the money
option and selling 2 or more of the OTM strikes, ideally for a net
cost of $0 or even a slight credit.  Turning back to the values
listed above, initiating a 1x2 Call ratio spread using the $50
and $60 strikes with a flat skew could actually be done for a
credit of $1.00 (2x$3.00 - $5.00).  

Turning to the smiling skew pricing, the same spread would net
us a credit of $1.80 (2x$3.40 - $5.00).  That fatter credit when
initiating the position gives us a bit more cushion should the
trade start to move against us, and pads our bottom line as the
trade moves in our favor.

Of course these prices are fictional, as we rarely find pricing
that is this favorable in the market.  But hopefully this concept
is making sense from an instructional standpoint.  So long as I
haven't made this too confusing, you should now see how paying
attention to the skew of volatility can really work to your
advantage if spread trading is a part of your overall strategy
in the market.  Hopefully I've convinced you that it is in your
best interest to pay attention to the volatility data before
putting on that next spread trade.

That does it for this week.  Happy exploring and remember,
questions are always welcome!


Mark


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***********************
INDEX TRADER GAME PLANS
***********************

THE SECTOR BEAT - 5/1
by Leigh Stevens


SECTOR ACTIVITY/OUTLOOK:

For those of us looking for a pullback in the Healthcare sector 
($HMO.X), being led by strength in Oxford Health (OHP), Wellpoint 
(WLP), United Health Group (UNH), Humana (HUM),Mid Atlantic 
Medical (MME),Tenet Healthcare, Aetna (AET), and PacifiCare 
Health Systems (PHSY), no such luck! 

How much the charts, with moves that approaching "straight up", 
look like many of the Nasdaq hot stocks in the last months of the 
late great bull market. Healthcare bubble? 

CASE IN POINT: 


 


I listed some areas that I would like to buy the aforementioned 
stocks or their calls, on pullbacks. Ha! It may not be easy, as 
once the train has got enough MOmentum, it's hard to jump on 
board. However, patience should pay off -- it always does.  There 
are some signs of at least temporary topping action occurring 
here and there.

CASE IN POINT: 


 

Other sectors up substantially today are - SURPRISE ! -- more of 
the recent Sector Hoties  -- Gold & Silver Index ($XAU.X), Oil 
Services ($OSX.X) and Health Care Providers Index ($RXH.X) were 
all on the top of the list of gainers today. 

A good example of the strong-trending gold stocks, is provided by 
the daily chart of Anglogold Ltd. The latest spurt is occurring 
on LESS volume, so the rally may be running out of steam. Time 
will tell. I would like to play the short side of some of the 
optionable stocks at some point.  These charts are also starting 
to look like many of the Nasdaq charts on the final run up.



 


Pharmaceuticals ($DRB.X) was another sector up today, but one 
that had been going down steadily for weeks and the stocks in 
this group had gotten pretty oversold. 


SECTOR TRADING IDEAS:

Biotechnology Index ($BTK.X) -- The biotech stocks were a recent 
strong performing group as sector index rebounded sharply earlier 
this week.  Biogen (BGEN) is a stock in this sector, that looks 
to have further upside potential, perhaps back up to the %53 area 
of the downside price gap.   

Buying the July 50 calls would be one way to participate in a 
recovery in this oversold sector:



 
    

Stocks favored in the Biotech group, assessed as having better 
than average upside potential within this sector also include: 
MLNM; PDLI; IMCL; GENZ; IDPH; and ADRX.   

Healthcare Payors Index ($HMO.X) -- 
Stocks favored in this group and the optimum levels to buy the 
stocks or call options, after pullbacks -- of course these stocks 
have very strong upside momentum so corrections may occur from 
higher levels, but am watching these stocks and pullback levels:

Oxford Health (OHP) at $43 (4/30 close: 46.16).
Wellpoint (WLP) at current levels & pullbacks to 70 (4/18: 75.08)
United Health Group (UNH) on dips to 80 area (close: 87.8)
Humana (HUM) - in $14 area (close: 16.3)
Mid Atlantic Medical (MME) - in 30 area (close: 36.43)
Tenet Healthcare -- in $66 area (close: 73.37)
Aetna (AET) - in $40 area (close: 47.6)
PacifiCare Health Systems (PHSY)in 23.5-24.70 area (close: 30.26)


SECTOR WATCH - contu.

>> DRG, the Pharmaceutical sector index ($DRG.X), (4/22 comment). 
Rebounding from low end of a probable trading range and oversold.  
Moreover, investor attention may focus on DRB due to strength in 
other healthcare areas.
  
DRG sector may be playable by the purchase of the May 60 Merck 
(MRK EL) calls, a prominent stock in this sector, especially on a 
pullback in the stock.

UPDATE: No suggestion yet on Merck   



LONG/CALL TRADES, PREVIOUSLY RECOMMENDED:

>> Internet Sector index ($INX.X) - 4/17 Sector Trader 
suggestion: OPTION play: JNPR (Juniper Networks) May 15 Calls 
(JUX EC).JNPR objective is to $18, based on the stock having 
potential to retrace half of the Dec - Feb. downswing.

The May 12.5's (JUX EV) Calls were also recommended. 

Stock is not performing as expected, but it may recover. HOLD 
only.


>> Cyclical sector ($CYC.X) - 4/15 suggestion:
1.) iShares Cyclical Trust (IYC)  - 4/16 open: 56.95
Objective: new high above 63.00
2.) OPTION play: CYC Sector stock, - Alcoa (AA) 
May 40 calls (AA EH) - 4/16 open: .60  

CYC broke technical support recently and AA fell to low end of 
its trading range at $33.30, but is off these lows. HOLD only.   


>> Airline sector ($XAL.X) - 4/15 Sector Trader suggestion:
OPTION PLAY: XAL sector stock Southwest Airlines (LUV) 
Sept. 20 (LUV ID) call suggested at 1.25 or less.  
OBJECTIVE: $22 based on a rebound back toward the high end of the 
current uptrend channel.

UPDATE: LUV has been holding technical support, so we are 
standing pat.  Good upside action today. HOLD only.


>> Utilities Index - Holders trust shares (AMEX: UTH) 
Long at 95.25 
Stop: 91.00



OPEN SHORTS/PUT PLAYS:

>> RTH (AMEX: Retail sector trust stock)
SHORT at 99.00 
Stop: 100 


LIQUIDATIONS:

>> Telecom ($XTC.X) index - 4/15 suggestion:
OPTION play: Sector stock, Level 3 Communications (LVLT)-
1)June 5 Call (HGY FA) suggested at .60 and under
2)LVLT outright purchase, with stock under $5, also suggested. 
Objective on LVLT stock is to 5.5/6 based on upside potential 
based on the stock continuing to advance within its current 
uptrend channel.

UPDATE: We EXITED long stock and calls today on the opening.  


NOTE: RISK to REWARD guidelines -  
Determining an objective is important, even if it is a moving 
target, as this is the reward potential.   Determining reward 
potential is critical to establishing whether a stop that makes 
“sense” (e.g., a sell stop that was placed under a key support 
level) would, if triggered, result in a dollar loss that is in 
proportion to profit potential; e.g., 1/3 of it.  (On occasion, 
when the purchase price of call or put is equal to 1/3 or less of 
the estimated reward potential, there may not be a specific exit 
suggestion, as the cost of the option is equal to the amount that 
is being risked.)   


Leigh Stevens
Chief Market Strategist
lstevens@OptionInvestor.com


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The Option Investor Newsletter                Wednesday 05-01-2002
Copyright 2001, All rights reserved.                        2 of 2
Redistribution in any form strictly prohibited.


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STOP-LOSS UPDATES
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DGX  - call
Adjust from $88 up to $90

FISV - call
Adjust from $42.25 up to $42.75

SRCL - call
Adjust from $64 up to $65

LRCX - put
Adjust from $27.75 down to $26.75

MU   - put
Adjust from $31 down to $27.50


*************
DROPPED CALLS
*************

None


************
DROPPED PUTS
************

CVC $25.80 +2.30 (+2.10) Comcast ignited a huge rally in cable
stocks today following the company's better than expected
earnings report earlier in the morning.  The news spread
across the media group, lifting CVC in the process.  The stock
rallied by nearly 10% after it was all said and done, closing
above our stop.  Volume accompanied the move, so it could be
that the long term downward trend has come to an end.  Traders
that weren't stopped out today should look for any intraday
weakness tomorrow to cut losses.


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

FISV - Fiserv $44.78 +0.32 (+1.50 this week)

Fiserv, Inc. is a technology resource for information management
systems used by the financial industry. Fiserv provides
information management technology and related services to banks,
broker-dealers, credit unions, financial planners and investment
advisers, insurance companies, leasing companies, mortgage
lenders and savings institutions.

Most Recent Update

Some companies continue to perform financially during this
economic downturn.  Their shares are garnering a premium
valuation.  Fiserv reported revenues of $560 million during
its first quarter, which marked a 21 percent increase over
the same period one year ago.  The stock has certainly
reflected the company's strong financial performance this
year as FISV remains one of the stronger stocks on the
Nasdaq market.  The stock's relative strength remains very
strong versus most market measures, which makes it one of
the better candidates for a breakout to new highs once the
broader market stabilizes.  Traders looking for a quick
breakout can use an advance above the $45 level to enter
new call plays into strength.  Just make sure that the
market is support such a momentum based strategy before
pulling the trigger.  Those who'd rather enter on a dip can
wait for a pullback on market related weakness down into
the $43 level which is supported by the 10-dma.  Our stop
is in place at $42.25.

Comments

FISV once again bucked the trend in the weak Nasdaq today,
finishing fractionally higher on the strength in the
broader market.  This one is ready to rally if only the
Nasdaq would cooperate.  Look for some cooperation early
tomorrow by watching for FISV to advance past its intraday
high at $45.33.  From there, watch for a trade up to the
$46 level.

BUY CALL MAY-40*FQV-EH OI=254 at $5.00 SL=3.00
BUY CALL MAY-45 FQV-EI OI=280 at $1.15 SL=0.50
BUY CALL JUN-40 FQV-FH OI=201 at $5.70 SL=2.75
BUY CALL JUN-45 FQV-FI OI=767 at $2.05 SL=1.25

Average Daily Volume = 1.51 mln



************************************************
BIG-CAP COVERED CALLS, NAKED PUTS & COMBINATIONS
************************************************

Title: What A Comeback!
By Ray Cummins

Stocks rebounded in an unusual manner today as the blue-chip Dow
industrials overcame a triple-digit deficit to finish 113 points
higher on strength in consumer and defense issues.

The reason for the early slump was a lower-than-expected reading
in a key measure of the manufacturing sector but investors soon
realized that the data was consistent with a healthy growth rate
in the economy and they went on a buying spree.  The Dow closed
up 113 points at 10,059 on strength in AT&T (NYSE:T), Coca-Cola
(NYSE:KO), SBC Communications (NYSE:SBC), Walt Disney (NYSE:DIS),
and General Motors (NYSE:GM).  Meanwhile, the technology-laden
NASDAQ continued to struggle amid worries about the lack of a
recovery in capital spending.  The hi-tech index shed 10 points
to close at 1,677 amid selling pressure in hardware, software and
Internet stocks.  In the broader market, pharmaceutical, gold and
oil service shares led the S&P 500 Index 9 points higher to 1,086
while biotechnology, paper, utility and retail issues generally
consolidated.  Overall market breadth was positive with winning
issues outpacing losing issues 19 to 12 on the Big Board, where
1.44 billion shares traded.  On the NASDAQ, 2.18 billion shares
changed hands with losers edging past winners 19 to 16.  In the
bond market, the 10-year Treasury note rose more than 1/8 while
its yield fell to 5.07%.  The 30-year bond was up nearly 3/8 to
yield 5.57%.

***************
Summary of Current Positions
***************
(As of 04-30-02)

Naked Puts

Stock  Strike Strike  Cost Current  Gain  Potential
Symbol  Month  Price Basis  Price  (Loss) Mo. Yield

ACF      MAY    35   34.45  38.82   $0.55   5.88%
MXIM     MAY    45   44.30  49.80   $0.70   5.87%
ADRX     MAY    35   34.50  45.22   $0.50   7.03%
PHTN     MAY    43   41.75  48.44   $0.75   7.21%


Naked Calls

Stock  Strike Strike Break Current  Gain  Potential
Symbol  Month  Price  Even  Price  (Loss) Mo. Yield

MRVL     MAY    48   48.00  36.00   $0.50   5.11%
TER      MAY    40   40.75  32.95   $0.75   6.67%
ICOS     MAY    55   55.50  25.76   $0.50   5.74%
CCMP     MAY    75   75.90  48.90   $0.90   6.86%
MXIM     MAY    65   65.90  49.80   $0.90   5.85%


Put-Credit Spreads

Stock                                          Gain
Symbol  Pick  Last Month L/P S/P Credit  C/B  (Loss) Status

ACDO   60.79 64.73  MAY   50  55  0.65  54.35  $0.65  Open
ASD    74.24 74.70  MAY   65  70  0.60  69.40  $0.60  Open
BSC    65.65 61.94  MAY   55  60  0.55  59.45  $0.55  Open
FAST   81.99 83.64  MAY   70  75  0.55  74.45  $0.55  Open
KSS    75.00 73.70  MAY   65  70  0.65  69.35  $0.65  Open
PCAR   77.34 71.47  MAY   65  70  0.50  69.50  $0.50  Open
WLP    67.79 75.08  MAY   60  65  0.80  64.20  $0.80  Open
IGEN   41.10 41.36  MAY   30  35  0.50  34.50  $0.50  Open
PGR    59.27 57.50  MAY   53  55  0.20  54.80  $0.20  Open
EXPE   80.56 80.84  MAY   65  70  0.70  69.30  $0.70  Open
TRMS   49.15 47.95  MAY   40  45  0.65  44.35  $0.65  Open
XAU    74.07 73.96  MAY   65  70  0.70  69.30  $0.70  Open

Paccar (NASDAQ:PCAR) and Bear Stearns (NYSE:BSC) are testing
the lower boundaries of recent trading ranges and will be
candidates for early exit on further weakness.


Call-Credit Spreads

Stock                                          Gain
Symbol  Pick  Last Month L/C S/C Credit  C/B  (Loss) Status

RE     66.00 67.90  MAY   80  75  0.00  75.00  $0.00  Open
CSC    44.82 44.85  MAY   55  50  0.65  50.65  $0.65  Open
SMH    44.38 41.47  MAY   55  50  0.55  50.55  $0.55  Open
PFE    37.85 36.35  MAY   42  40  0.35  40.35  $0.35  Open
CCMP   53.75 48.90  MAY   70  65  0.00  65.00  $0.00  Open

 
Debit Straddles/Strangles: 

Stock   Position   Debit  Target   M/V      G/L      Status

DST    MAY50C/50P  3.90    5.50    4.10     0.20      Open
SPC    MAY50C/50P  3.90    5.50    3.75    (0.15)    Closed
GS     MAY80C/80P  6.00    0.00    0.00     0.00     No Play

On Thursday, the DST Systems (NYSE:DST) straddle offered a
second break-even exit in the bearish portion of the play as
the issue fell to a low of $46.  Traders who took the exit
were rewarded with a very profitable opportunity this week
as DST rebounded to the previous range near $50.  The neutral
position in St. Paul Companies (NYSE:SPC) was not successful
as the stock recovered from selling pressure on a positive
earnings report.  The Goldman Sachs (NYSE:GS) straddle was
volatile right from the start but the activity prevented an
entry near the target debit (on a simultaneous order basis).


Synthetic Positions:

Stock  Pick     Last    Position   Credit   C/B    G/L   Status

APOL   43.42   38.34   MAY43C/30P  (0.13)  42.77   0.46  Closed
GM     64.95   64.15   MAY70C/60P   0.45   59.55   0.55   Open
BA     45.37   42.46   MAY40P/50C  (0.40)  49.60   0.10  No Play
KBH    49.76   49.85   JUN55C/45P   0.25   44.75   0.40   Open
KLAC   60.31   58.97   JUN70C/50P  (0.10)  69.90   0.70  Closed

The new position in KLA-Tencor (NASDAQ:KLAC) offered an excellent
short-term profit as the issue moved higher Thursday, allowing a
reasonable entry price, then slid $4 the following session in the
wake of the technology sell-off.


New Candidates:

This following group of plays is simply a list of candidates to
supplement your search for profitable trading positions.  As
with any investment, you must decide if the selections meet your
criteria for potential plays.  Only you can know what strategies
are suitable for your skill level, risk-reward tolerance and
portfolio outlook.  In addition, we recommend that you avoid any
strategy or technique in which you are not completely comfortable
with the potential loss, the necessary adjustments and the common
entry-exit strategies.  (We monitor the positions marked with ***).

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

BULLISH PLAYS - Covered Calls, Naked Puts, & Combinations

One of our new readers commented on the gains of our speculative
synthetic positions and asked for some additional candidates in
that category.  Based on recent technical indications, all of
these positions offer favorable risk-reward potential for traders
who are bullish on the underlying issues.

***************
ADVP - AdvancePCS  $34.39  *** Upgrade = Rally! ***

AdvancePCS (NASDAQ:ADVP) is a provider of health improvement
services in the United States.  As a pharmacy benefit management
company (PBM) AdvancePCS currently serves more than 75 million
health plan members and manages more $21 billion in prescription
drug spending on an annualized basis on behalf of the company's
health plan sponsors.  In addition, the company offers a range
of health improvement products and services, such as prescription
discount cards for the uninsured and under-insured, Web-based
programs, disease management, clinical trials/tests and outcomes
studies.  The company generates revenues by providing its health
improvement services to two primary customer groups: health plan
sponsors and pharmaceutical manufacturers.

Shares of AdvancePCS closed at a 7-month high today after analysts
at UBS Warburg started coverage on the issue with a "buy" rating.
The stock reacted favorably to the announcement, despite broad
market selling pressure early in the day, and the issue moved up
on heavy volume.  Now the stock is testing resistance at $35 but
the company's quarterly earnings announcement, due on 5/15, should
be a catalyst for additional buying activity in the coming weeks.

ADVP - AdvancePCS  $34.39
 
PLAY (speculative - bullish/synthetic position):

BUY  CALL  JUN-40  QVD-FH  OI=915  A=$0.45
SELL PUT   JUN-30  QVD-RF  OI=386  B=$0.50
INITIAL NET CREDIT TARGET=$0.15-$0.25  TARGET PROFIT=$0.50-$0.75

Note:  Using options, the position is similar to being long the
stock.  The collateral requirement for the sold (short) put is
approximately $985 per contract.


***************
RIG - Transocean Sedco Forex  $37.20  *** On the Move! ***

Transocean Sedco Forex (NYSE:RIG) is a provider of offshore
contract drilling services for oil and gas wells.  The company
owns, or has partial ownership interests in, operates or has
under construction over 150 mobile offshore and barge-drilling
units.  The company's active fleet includes 13 high-specification
drill-ships, three other drill-ships, 20 semi-submersibles, 30
other semi-submersibles, 55 jack-up rigs, 37 drilling barges,
five tenders and three submersible rigs.  The fleet also includes
four mobile offshore production units, two multi-purpose service
vessels and three platform-drilling rigs.  Transocean's primary
business is to contract these drilling rigs, related equipment
and work crews to drill oil and gas wells.  The company focuses
on technically demanding segments of offshore drilling, with a
spotlight on deepwater and harsh environment drilling services.
Transocean also provides management of third-party well service
activities.

Transocean Sedco Forex was a popular stock today in the wake of
the company's quarterly earnings report.  On Tuesday, Transocean
posted earnings that exceeded consensus estimates and said that
operating revenues rose to $667 million from $550 million in the
year-ago period.  Analysts at Salomon Smith Barney and Wachovia
upgraded the issue based on the better-than-expected results and
improving fundamentals in the domestic jack-up market.  Traders
who agree with a bullish outlook for the company can attempt to
profit from future upside activity in its share value with this
aggressive position.

RIG - Transocean Sedco Forex  $37.20

PLAY (aggressive - bullish/synthetic position):

BUY  CALL  JUN-40  RIG-FH  OI=218  A=$1.30
SELL PUT   JUN-35  RIG-RG  OI=193  B=$1.35
INITIAL NET CREDIT TARGET=$0.15-$0.40  TARGET PROFIT=$0.75-$1.25

Note:  Using options, the position is similar to being long the
stock.  The collateral requirement for the sold (short) put is
approximately $1,400 per contract.


***************
RTN - Raytheon Company  $42.40  *** New Contracts! ***

Raytheon Company (NYSE:RTN) is a provider of defense electronics,
including missiles; radar; sensors and electro-optics; wartime
intelligence, surveillance and reconnaissance; command, control,
communication and information systems; naval systems; air traffic
control systems; aircraft integration systems; and technical
services.  Raytheon's commercial electronics businesses leverage
defense technologies in commercial markets.  Raytheon Aircraft is
a provider of business and special mission aircraft and delivers
a broad line of jet, turboprop and piston-powered airplanes.

Raytheon shares moved higher today after the company announced
it had won yet another contract to develop state-of-the-art
military defense products.  Raytheon's newest agreement is a $29
million pact to produce Phalanx missile upgrade kits for the
Canadian Navy and news of the deal comes just one day after the
company announced it won a $165 million contract to build 387
advanced air-to-air missiles for the U.S. Navy, Air Force and
foreign military customers.  Raytheon was also recently awarded
a contract to be the systems integrator for the DD(X), the U.S.
Navy's next-generation surface combatant ship.  The contract,
expected to total $1.36 billion over the next three years, is a
very important win for Raytheon because it is in an area that
provides great growth potential for the company.

Based on the recent technical indications, investors are happy
with the future prospects for the company as well as the defense
industry.  Traders who believe the optimism will continue in the
near-term can speculate on that outcome with this position.

RTN - Raytheon  $42.40
  
PLAY (speculative - bullish/synthetic position):

BUY  CALL  JUN-47.50  RTN-FW  OI=10  A=$0.50
SELL PUT   JUN-37.50  RTN-RU  OI=60  B=$0.45
NITIAL NET CREDIT TARGET=$0.10-$0.20  TARGET PROFIT=$0.40-$0.75

Note:  Using options, the position is similar to being long the
stock.  The collateral requirement for the sold (short) put is
approximately $1,250 per contract.


***************
WLP - Wellpoint Health Network  $77.00  *** Sector Leader! ***

WellPoint Health Networks (NYSE:WLP) is a United States managed
healthcare company.  WellPoint offers a range of network-based
managed care plans.  WellPoint provides these plans to the large
and small employer, individual, Medicaid and senior markets.  The
company's unique managed care plans include preferred provider
and health maintenance organizations, and point-of-service and
other hybrid plans and traditional indemnity plans.  In addition,
the company offers managed care services, including underwriting,
actuarial services, network access, medical cost management and
claims processing.  The company also provides an array of other
products, including pharmacy, dental, utilization management,
life insurance, preventive care, disability insurance, behavioral
health, COBRA and flexible benefits account administration.

Stocks in the Health Care Plans group rallied today after Oxford
Health Plans (NYSE:OHP) posted higher quarterly gains, as rising
membership in its health plans helped boost first-quarter profits.
The health insurer also said its 2002 earnings per share would be
better than expected and the bullish attitude quickly spread to
other companies in the sector.  WellPoint was one of the stocks
that benefited from the upbeat outlook and the issue closed the
session a new, all-time high.  The technicals suggest the issue
is slightly overbought, but after a brief lateral consolidation,
the bullish activity should continue.  Traders who favor the
outlook for WellPoint should target a higher premium in this
speculative play initially, to allow for the expected pullback.

WLP - Wellpoint Health Network  $77.00

PLAY (speculative - bullish/synthetic position):

BUY  CALL  JUN-85  WLP-FQ  OI=23   A=$0.70
SELL PUT   JUN-70  WLP-RN  OI=199  B=$0.75
INITIAL NET CREDIT TARGET=$0.15-$0.25  TARGET PROFIT=$0.60-$0.90

Note:  Using options, the position is similar to being long the
stock.  The collateral requirement for the sold (short) put is
approximately $2,450 per contract.


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

Credit Spreads - Defense Sector Rally!

Stocks related to the defense industry have been on the move in
recent sessions, due to the increased potential for conflict in
Iraq and a number of new contract wins among industry leaders.
All of these companies have excellent fundamental outlooks and
relatively bullish technical indications, but they should also
be evaluated for portfolio suitability and reviewed with regard
to your personal investing criteria.

***************
ATK - Alliant Techsystems  $112.45  *** New High! ***

Alliant Techsystems (NYSE:ATK) conducts business through three
industry segments: Aerospace, Conventional Munitions and Defense
Systems.  Within these segments, ATI has four business lanes:
Propulsion and Composites, each of which falls within Alliant's
Aerospace segment; Conventional Munitions, which corresponds to
the company's Conventional Munitions segment; and Precision
Capabilities, which corresponds to the company's Defense Systems
segment.  In fiscal 2001, the company moved its missile products
business, Alliant Missile Products Company LLC, to its Aerospace
segment.  In February 2001, ATI sold its infrared decoy business,
Alliant Kilgore Flares Company LLC and in March 2001, the company
sold the secure electronics product line of Alliant Integrated
Defense Company LLC.  The company's quarterly earnings are due
on 5/9/02.

ATK - Alliant Techsystems  $112.45

PLAY (conservative - bullish/credit spread):

BUY  PUT  MAY-100  ATK-QT  OI=40   A=$0.60
SELL PUT  MAY-105  ATK-QA  OI=125  B=$0.90
INITIAL NET CREDIT TARGET=$0.50-$0.60  PROFIT(max)=11%


***************
GD - General Dynamics  $98.31  *** New Trading Range? ***

General Dynamics (NYSE:GD) operates businesses that produce
information and communications technology, land and amphibious
combat systems, and it is also engaged in naval and commercial
shipbuilding, and business aviation.  These are high technology
businesses that use design, manufacturing and program management
expertise together with advanced technology and the integration
of complex systems as part of their everyday operations.  The
company operates in four primary business groups: Information
Systems and Technology, Combat Systems, Marine Systems, and
Aerospace.  The company also owns other commercial operations.

GD - General Dynamics  $98.31

PLAY (conservative - bullish/credit spread):

BUY  PUT  MAY-90  GD-QR  OI=1254  A=$0.30
SELL PUT  MAY-95  GD-QS  OI=1395  B=$0.80
INITIAL NET CREDIT TARGET=$0.55-$0.65  PROFIT(max)=12%


***************
NOC - Northrop Grumman  $124.68  *** Rally Mode! ***

Northrop Grumman Corporation (NYSE:NOC) is a global defense
company that provides unique, technologically advanced products,
services and solutions in defense and commercial electronics,
systems integration, information technology and nuclear and
non-nuclear shipbuilding and systems.  Northrop Grumman has
operations in 44 states and 25 countries, serving U.S. and
international military, government and commercial customers.
Northrop Grumman is aligned into six primary business sectors:
Electronic Systems, Information Technology, Integrated Systems,
Ship Systems, Newport News and Component Technologies.

NOC - Northrop Grumman  $124.68

PLAY (moderately aggressive - bullish/credit spread):

BUY  PUT  MAY-115  NOC-QC  OI=1123  A=$0.45
SELL PUT  MAY-120  NOC-QD  OI=843   B=$1.20
INITIAL NET CREDIT TARGET=$0.80-$0.90  PROFIT(max)=19%


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

Credit Spreads - Other Industries

***************
DGX - Quest Diagnostics  $94.75  *** Up, Up And Away! ***

Quest Diagnostics (NYSE:DGX) is a provider of diagnostic testing
and related services for the healthcare industry.  The company
offers a broad range of clinical laboratory testing services
used by physicians in the detection, diagnosis, evaluation,
monitoring, treatment of diseases and other medical conditions.
The company is engaged in clinical laboratory testing and other
esoteric testing, including molecular diagnostics, as well as
anatomic pathology services and testing for drugs of abuse.  The
company has a network of principal laboratories in metropolitan
areas throughout the U.S., as well as several joint-venture
laboratories and over 150 smaller rapid-response laboratories
and 1,300 patient service centers.  The company also operates an
esoteric testing laboratory and development facility, known as
Nichols Institute, located in San Juan Capistrano, California,
as well as laboratory facilities in Mexico City, Mexico and near
London, England.

Shares of Quest Diagnostics, the largest U.S health diagnostic
test provider, have moved steadily higher since the company said
in mid-April that first-quarter profits jumped 87% amid quality
and technology improvements.  The company's earnings results beat
analysts' consensus estimates by 7 cents and the numbers did not
include revenue from the recently completed purchase of privately
held American Medical Laboratories, which produces $300 million
in annual revenues.  The CEO of Quest says they will continue to
improve financial results through top-line growth and increased
efficiency, which translates into large increases in earnings per
share.  Investors must favor that plan as Quest closed today's
session at an all-time high and based on the bullish technical
indications, the issue appears poised for future gains.

DGX - Quest Diagnostics  $94.75

PLAY (conservative - bullish/credit spread):

BUY  PUT  MAY-85  DGX-QQ  OI=719  A=$0.25
SELL PUT  MAY-90  DGX-QR  OI=631  B=$0.70
INITIAL NET CREDIT TARGET=$0.50-$0.60  PROFIT(max)=11%


***************
SRCL - Stericycle  $68.99  *** Solid Earnings! ***

Stericycle (NASDAQ:SRCL) is a regulated medical waste management
company in North America, serving approximately 269,000 customers
throughout the United States, Canada, Puerto Rico and Mexico.
Stericycle's services and operations are comprised of collection,
transportation, treatment, disposal and recycling, together with
related training and education programs, consulting services and
product sales.  The company has an integrated, national medical
waste management network that includes 36 treatment/collection
centers and 94 additional transfer and collection sites.  The
company uses this network to provide medical waste collection,
transportation and treatment and related consulting, training
and education services and products.  Stericycle's treatment
technologies include its proprietary electro-thermal-deactivation
system (ETD), as well as traditional methods, such as autoclaving
and incineration.

Stericycle has been one of the stronger issues in market segments
other than the defense industry and the recent bullish activity
appears to be due to a favorable quarterly earnings report.  The
company reported today that revenues for the first quarter were
$97.1 million, up 13.1% from $85.8 million in the same quarter
last year.  Gross profit was also higher at $38 million, up 14%
from $34 million in the same quarter last year.  The CEO noted
that the first quarter has positioned the company for "another
tremendous year for our company, with across-the-board growth
and record results."

Traders with a bullish outlook for Stericycle in the near-term
can profit from additional upside activity in its share value
with this position.

SRCL - Stericycle  $68.99

PLAY (conservative - bullish/credit spread):

BUY  PUT  MAY-60  URL-QL  OI=321  A=$0.40
SELL PUT  MAY-65  URL-QM  OI=31   B=$0.95
INITIAL NET CREDIT TARGET=$0.60-$0.70  PROFIT(max)=14%


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

SUPPLEMENTAL CREDIT-SPREAD CANDIDATES

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

BULLISH PLAYS:

Stock  Last   Short    Bid    Long     Ask   Target  Monthly
Symbol Price  Option   Price  Option   Price Credit   Gain

ROOM   61.76  MAY 55P  0.90   MAY 50P  0.35   0.60     14%
PHTN   49.11  MAY 45P  0.95   MAY 42P  0.65   0.60     14%
ACDO   63.14  MAY 60P  1.00   MAY 55P  0.50   0.55     12%
BAC    72.24  MAY 70P  0.75   MAY 65P  0.25   0.55     12%
STJ    82.54  MAY 80P  0.85   MAY 75P  0.35   0.55     12%
BZH 	 91.40  MAY 85P  0.90   MAY 80P  0.45   0.50     11%


BEARISH PLAYS:

Stock  Last   Short    Bid    Long     Ask   Target  Monthly
Symbol Price  Option   Price  Option   Price Credit   Gain

ADI 	 36.80  MAY 40C  0.70   MAY 45C  0.15   0.60     14%
MMM   126.00  MAY 130C 0.80   MAY 135C 0.25   0.60     14%
LLY 	 67.20  MAY 70C  0.60   MAY 75C  0.10   0.55     12%
QLGC 	 44.48  MAY 50C  0.75   MAY 55C  0.30   0.50     11%
MER 	 42.10  MAY 45C  0.55   MAY 50C  0.10   0.50     11%
CERN 	 52.66  MAY 55C  0.70   MAY 60C  0.25   0.50     11%

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


SEE DISCLAIMER
*****************************


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option or stock
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offers fast option executions

PreferredTrade offers these online option trading features and 
more; call 1-888-889-9178 or click for more information.

http://www.PreferredTrade.com/CF/Home.CFM?ID=OIN
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************
MARKET WATCH
************

Momentum is alive and well in select sectors of the market.  Check 
out this “high flyer” over the next few weeks.


To Read The Rest of The OptionInvestor.com Market Watch Click Here
http://members.OptionInvestor.com/watchlist/050102.asp


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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.

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