Option Investor
Newsletter

Daily Newsletter, Sunday, 07/21/2002

HAVING TROUBLE PRINTING?
Printer friendly version
The Option Investor Newsletter                   Sunday 07-21-2002
Copyright 2002, All rights reserved.                        1 of 5
Redistribution in any form strictly prohibited.

Entire newsletter best viewed in COURIER 10 font for alignment

Posted online for subscribers at http://www.OptionInvestor.com
******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
        WE 7-19          WE 7-12          WE 7-05          WE 6-28
DOW     8019.26 -665.27  8684.53 -694.97  9379.50 +136.24  - 10.53
Nasdaq  1319.15 - 54.35  1373.50 - 74.86  1448.36 - 16.58  + 24.01
S&P-100  423.10 - 35.81   458.91 - 33.75   492.66 +  2.54  +   .70
S&P-500  847.75 - 73.64   921.39 - 67.64   989.03 -   .79  +   .69
W5000   8083.00 -628.50  8711.50 -601.90  9313.40 - 70.63  -  5.95
RUT      386.20 - 27.08   413.28 - 27.64   440.92 - 21.74  +  1.59
TRAN    2332.18 -147.96  2480.14 -172.50  2652.64 - 77.68  - 25.32
VIX       43.45 +  5.12    38.33 +  8.12    30.21 +  1.08  -  2.15
VXN       61.17 -  4.83    66.00 +  9.72    56.28 -  1.67  -  1.35
TRIN       1.44             0.89             0.28             1.18
Put/Call   1.14             0.64              .77              .66
******************************************************************

 
Last Line of Defense Breaks!  
by Jim Brown

It is starting to become a nasty habit with the Dow losing more 
than -665 points two weeks in a row. The -390 point drop on Friday
was not as critical as the actual levels that were broken. I hate 
to be the bearer of bad tidings but the final bastion of post 9/11
support is now history. The Dow was the last index to fail and it
went down in flames. The Dow broke the 8063 post 9/11 reaction 
low at 3:36 PM and there was not even a blip on the chart when it 
was passed. Traders watched in shock as the down volume swamped
up volume and accelerated into the close.

Chart of the Dow


 
Chart of the Nasdaq 100


 
Volume across all exchanges was 5.394 billion shares. Up volume
was only 741 million shares with down volume of 4.062 billion. 
This nearly 6:1 ratio was bad but analysts are still predicting
that things will get worse. The Russell-2000, normally a leading
indicator for the broader market lost another -27 points to close
at 386 and well off the 465 high from three weeks ago. The standout
for the week was the NDX. The Nasdaq 100 still lost ground, -35
points for the week, but only -3.5% when the other major indexes
were down over -6%. This would indicate that tech stocks could be 
the leaders once the bottom is found. 

The morning started off bad with Dow component JNJ down -$9 after
saying it was under investigation for record-keeping irregularities
relating to a factory that makes Eprex. This is not an accounting
problem but concerns records relating to the manufacture of the
drug. According to all accounts this is a non-event and we are 
adding JNJ as a call play today. Still the negative sentiment
surrounding a Dow component down -$9 set the tone for the markets.

It did not help any that Microsoft finished up their earnings
release yesterday with cautious comments about the coming quarter.
If the biggest and most Teflon covered tech company could be
facing a challenging quarter then what would the rest of the
industry be facing. SUNW had positive things to say on Thursday
but analysts read between the lines on their guidance and decided
that the outlook was worse than they thought. MSFT lost -1.55
for the day and SUNW dropped -26% to $4.24. 

Microsoft would have been down more except for some massive buy 
on close orders for several tech stocks. MSFT saw orders for nearly
two million shares at the close. IBM saw nearly one million shares
trade, INTC over one million and nearly two million in ORCL. 
Somebody saw the support in the NDX and decided they wanted to
be long tech for Monday. OR, they decided enough was enough 
without a major NDX drop and they covered their shorts. 

Another factor in the sell off was the massive trade imbalance
reported on Friday. The trade deficit jumped to $37.6 billion
and the largest number on record. This number was impacted in
some extent to the fall of the dollar. It now takes more dollars
to buy merchandise than it did several months ago. 

The economic numbers may be less than desirable but the main
number we need to worry about is the cash outflow from equity
funds. AMG Data said in the week ended Wednesday $11.4 billion
in cash was taken out of equity funds. When you consider more
than $1.5 trillion in market cap was lost in the markets in the
last two weeks these investors may be considering themselves 
lucky. The number we hit today on the Dow, under 8000, is 
exactly where the Dow was in July 1997. Exactly five years of
profit has gone up in smoke. This was the worst two weeks for
the Dow since the 1987 crash. 

The damage this week was not limited. Every sector regardless
of previous strength, future outlook, market cap or depth of
oversold was spared. The Russell-2000 has died. The SPX/OEX
have both died. On the S&P fully 27% of the stocks set new
52-week lows this week. Only 5% of the S&P are above their
200 DMA and only 1% are above their 50 DMA. The bear market
has been chewing up company after company and the carnage is
far from complete according to many. There are still profits
in risk in companies like the home builders and defense stocks
and until those winners are dumped with the rest the selling
will continue.

I have read and listened to every conceivable version of the 
fate of the markets today. I have head Dow 11,000 to Dow 5,000
by year end. (yes there are still some diehard bulls) I have
heard dire predictions for next week and the possibility for 
another -600 point drop. When everyone was ready to call a 
bottom last week it appears that they are now projecting the
bottom well out into the future. It appears everyone is trying 
to go on record as being more bearish than everyone else. This 
is great news! It means the bottom, if there really is one, 
"should" not be far away. In reality I think it is farther 
than even some serious bears may want to admit. There are so
many problems that just fixing one or two will not cure the
patient. Some of the problems are date specific and cannot be
cured next week.  

The dollar continues to fall and overseas investors are still
repatriating funds and moving out of the U.S. stock market.
Margin selling is gaining speed as the hard core who leveraged
down on every dip are being wiped out right and left. Funds are
selling to raise cash for redemptions as thousands of investors
call it quits. The only people not selling are the hedge funds
which are covering shorts in expectation of a coming rebound.
(remember the buy on close orders on Friday?) The selling is
so widespread that it is being felt in rural America. My wife
stopped at a large yard sale on Friday. Seemingly everything
but the kitchen sink was on sale. The owners husband is a 
full service broker and she said he was afraid to answer the
phone. Every call was somebody liquidating their account. Many
had been clients for many years. They saw the handwriting on
the wall and were raising cash to downsize their lifestyle.

While that is a sign of true capitulation it also raises a
critical point. When the 1987 crash was over millions of 
investors were no longer in the market, either by choice or
by liquidation. When this crash is over there will be far
more investors, due to the Internet investing craze, that will
no longer be in the market due to choice, bad decisions or
forced liquidation. In 1987 almost all investors had brokers
to bounce decisions off of. (I know the obvious conclusion 
here but hear me out.) With the Internet empowering investors
to make their own decisions, many with no guidance or education
at all, the money flowed and flowed and flowed. The well has
now run dry for roughly 60% of the Internet investors if estimates
are to be believed. Those investors will not be back any time
soon. This is a major hit for those investors, to the wealth
effect and to the future market. 

Consumption was rampant during the market bubble. Cars, boats,
big screen TVs, dvd players, personal computers, etc. Money
was easy and the IRAs and 401Ks were an ever growing bank account
providing security for the spendthrift lifestyle. Fast forward
to the present. Unemployment is very high. Layoffs are continuing
to be announced daily. Major corporations are closing factories
and reporting massive write offs. Profit projections for 15%-50%
growth are being revised downward to +1% to +4%. The world is
suddenly not a safe place and fear of flying takes on an entirely 
new meaning.   

Suddenly the term "earnings surprise" has mutated into "surprised
if they have earnings". The investing public will likely see the
largest bankruptcy in corporate America by Monday. WCOM has gone
from offering half the Internet capacity in the U.S. to a $100 
billion black hole for investors. WCOM will surpass the prior
largest bankruptcy of Enron just a couple months ago. While this
is very bad the worst may be yet to come. Even Greenspan warned
that there are many more accounting problems in our future. The
markets today are reacting to the coming accounting lottery. The
top 900+ companies in America have been given till August 14th
to begin certifying their financial statements under criminal
penalties. Various estimates vary from 10 to 100 companies will
disclose accounting skeletons and if you are holding one of these
companies when they announce you will win the prize. That prize
will be a stock price that could be cut in half or worse overnight.
If it can happen to WCOM it can happen to anybody.

This is breeding a lot of uncertainty in the investor world. With
capital retention the number one priority the only thing you can 
do is move out of stocks that you feel are not 100% squeaky clean.
Who is that? Even GE has come under fire for possible accounting
problems and that means anybody is suspect. It does not have to
be a little guy stretching the truth to entice investors to his
$5 stock. It can be anyone as we have see recently from the 
negative news events. The investing public is so scared right 
now that JNJ dropped -$9 on news that an employee who works in
the boiler room filed a grievance suit and the Feds decided to 
investigate. The stock lost $23 BILLION in market cap in one
day. The employee claimed he was pressed to cover up a lapse in
a manufacturing process in 1999 and then fired a couple days
before a future inspection by the FDA. Suddenly the blackmail
possibilities are endless. Is this worth $23 billion? Of course
not but it illustrates the fear in the markets. 

Where to from here? To use a phrase from Art Cashin, "investors
have gone from disappointment to disillusionment and are on the
verge of despair." The keyword here is "verge". Despite the 
massive Dow drops over the last two weeks (-14.4%) most agree
we have not seen the bottom. With the failure of the last major
psychological level for the Dow, that being 8063, we are free
to trade down to 7400 without any serious resistance. Yes, I
said 7400. Will we see that on Monday? I doubt it but with the
current depth of negative sentiment I think we will get there.
With so many analysts calling for massive capitulation on Monday
morning I doubt we will see that either. The market never gives
us what we expect in the short term but is normally predictable
longer term. I will leave the discussion about individual support 
and resistance levels to Leigh in his Index Wrap this weekend
and stick to the general outlook.

I think the severely oversold conditions will produce a rebound
soon, probably Monday afternoon or Tuesday. It is a simple technical
fact that you can't push stocks down much farther without a 
relief rally to equalize pressure. The spring will only compress
so far! This will only be a trading bounce. With August 14th 
looming in our future it will be very hard to mount any kind of
sustained rally until all the bad news is over. Several readers
have asked about the VIX this weekend. The VIX hit a high of 
43.79 on Friday and closed at 43.36. This level has not been
seen since Sept-24th. Before that you have to go all the way
back to the October-1998 crash when it traded as high as 60 to
find another surge of this magnitude. Historians know that 
extremely high VIX readings predict market bottoms almost 
exactly. The only criteria here is how high is high? 

While the VIX was over 43 on Sept-24th it was also over 57 
several days before. While it was 43 on Oct 11th 1998 it was 
over 60 on October 4th. In normal markets a high reading in the 
mid 30s is enough to bring buyers flocking in from the sidelines. 
In abnormal markets there is an outside force controlling the 
markets and the VIX which is an indicator of fear is simply an
indicator that fear is rising. Many felt the VIX should have 
been higher on Friday. I agree. Option expiration held it down. 
The VIX is calculated on by taking a weighted average of the 
implied volatilities of eight OEX calls and puts. The options 
chosen have an average time to maturity of "30" days. This 
means on expiration Friday the options used are a month in 
our future and they are not quite as volatile as the current 
month options. The bottom line, we may see a higher VIX this
week but the number itself should only be taken as one of
several indicators for the time to buy. The put/call ratio
at 1.14 today is another strong indicator of an impending 
relief rally but it can also move higher. The bottom line is
fasten your seat belts and stow your tray tables the ride
ahead could still be bumpy!

Enter Very Passively, Exit Very Aggressively!

Jim Brown
Editor


Was this commentary helpful to you?
Jim@OptionInvestor.com


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

TWENTY PERCENT 
by Leigh Stevens

TRADING ACTIVITY AND OUTLOOK - 
That's how much the Dow has fallen in just 9 weeks!  This makes 
just the fifth time that the DJIA has fallen that much in that 
short of a time span.  It can take that long to make up your mind 
about what fund to invest in your retirement account.  Speaking 
of which, Americans are finding that their retirement nest eggs 
in equities are shrinking rapidly and they are unhappy about it!  
The unhappiness with the Market is being felt in fund land - not 
FUNland, but funds, as in mutual funds - total fund net OUTflow 
in the week ending last Wed, was $11.4 billion.  All of June was 
only $11 billion out. At this rate it will be a trillion for the 
year! Wonder how the redemptions will fare over the weekend as 
folks reflect on the market hemorrhaging and the kind of stats 
just mentioned.

By the way, one encouraging historical note is provided by the NY 
Times this weekend - the last 4 times of a Dow plunge of 20% or 
more in 9 weeks, led to these rebounds a year later: Week ending 
6/27/62 - 1 year later +33.7%; 9/13/74, - l year later up 29.1%; 
10/23/87 - following year, +11.9; 9/21/01 (close: 8236) - 9/21/02 
Dow close is unknown; Week ending last week, 7/19/02 - what 
7/19/03 brings regarding the Dow close is really unknown.    

Here are some more - stats, I mean - the S&P 500 is at its lowest 
level since 1997 is down 44% from its March high.  The Nasdaq 
Composite is back to its May '97 lows and is off 74% from its 
March 2000 price peak.  Well, I always say, deep retracements can 
be as much as 75%.  And, the Nasdaq at least appears to be 
digging in.  All that money coming out of "old economy" stocks is 
going somewhere - besides walking out the door, that is.  And, 
the global decline in the equities markets has got many thinking 
that the U.S. economic rebound may not be the engine of a world 
wise recovery so soon.  Or, worse, that the U.S. may falter in 
its recovery. 

It would seem that President Bush could go on the tube and say 
some more proactive things to reassure people, but "CEO 
presidents" may not be better than business CEO's in rallying the 
troops!  

Bad news came from several companies - I mentioned Sun Micro 
(SUNW) on Thursday as being in line with Street expectations on 
current earnings - of course, it was sales being under 
expectations and SUNW "guidance" on what's ahead, that dropped 
the stock. SUNW fell a whooping 26% on Friday (from 5.80 to 4.25) 
- and, hey, this a good company!  You know what the market has 
done to BAD ones. 

Microsoft (MSFT) came in with better than expected earnings, but 
said that sales of its Xbox gaming systems were disappointing.  
Guess the gamers won't put up with the same stuff we do in MSFT 
Windows.  

Johnson & Johnson (JNJ), another good company, was a total drag 
on the Dow at the end of last week, as its shares plunged nearly 
16% on Friday, on reports that the government was conducting a 
criminal investigation into its Puerto Rico (PR) manufacturing 
facility - its anemia drug made there has been linked to some 
serious health problems in Europe and Canada.  

JNJ then said over the weekend that accusations made by a former 
PR employee, has nothing to do with the illnesses in patients 
using the drug produced at their island plant. However, it's 
unclear whether this all has anything to do with the criminal 
probe - the feds aren’t saying.  So it goes in the Street of 
Dreams or lately, the Street of Nightmares. 

Program style trading (buys or sells of a "basket" of at least 15 
stocks with each stock having a share value of at least $50,000) 
was active as many funds, especially S&P 500 (SPX) Index funds, 
did significant portfolio "rebalancing".  Gone from SPX on Friday 
were RD, UN, NT, AL, ABX, PDG and N; newly added were EBAY, ERTS, 
UPS, GS, PRU, PFG and SDS. My last week's Trader's Corner column 
article was on Program Trading, including that variation known as 
Index Arbitrage involving S&P 500 futures and its "Fair Value".   

Now you may be tired of the "old" news, like the "old" economy 
(you may not be happy with the "new" economy either, but at least 
its new) and wonder what I think is coming NEXT. Me too, wonder 
that is.  Well, as usual, I have a few things to say about the 
indices. 

S&P 100 (OEX) Index - Daily/Hourly charts:


 S&P 500 (SPX) Index - Hourly chart:
 
432 was a "minimum" downside objective based on the Head & 
Shoulder's top pattern on the hourly and half hour charts and you 
can see why such targets can imply a minimum objective only.  OEX 
has now reached the low end of the re-drawn steeper down 
trendline of the price channel - the one reflecting the 
accelerated downside momentum this month. 

If the indices hold true to past patterns as regards the channel 
and given the near-term oversold conditions implied by the longer 
hourly stochastic model, there "should" be a rebound.  However, 
we have to also note the possibility that prices just continue to 
"walk" down that trendline. I think the odds favor a bounce, 
perhaps back up to the 447 area, which was the recent "breakdown" 
point, as the slide beginning Thursday broke under a "line" of 
support implied by the low end of the prior 2-day trading range. 
436, at the prior (down) swing low may provide immediate overhead 
resistance.  

I will be looking for a buying opportunity in the near-term such 
as Monday and suggest that it may be time to cover put positions. 
It's been consistently profitable to sell rallies, especially 
ones that get the index back up to technical resistance areas.  
The only wrinkle now is that with the sharply increased 
volatility of the last month (VIX close on Friday: 43.45, highest 
since 9/17!) and the resulting sharply increased premiums, it 
pays to trade selectively, such as buying puts on strength and 
waiting for the periodic "extremes". 

S&P 5100 (SPXOEX) Index - Hourly chart:


 

My "minimum" SPX downside target from last week was to 866 and of 
course it overshot this.  If you look at the lower envelope 
lines, such as on the OEX and DJX daily charts, these bands were 
tracking the lows until - they well "off" them like off a cliff. 

Where from here?  The SPX is also now at the low end of the new 
lower downtrend channel, is oversold and "ripe" for a technical 
rebound - one perhaps greater than a "dead cat" bounce. You can't 
bounce a cat very far. My cat won't stand for it either!

876 at the previous swing low may be the first resistance point. 
895 is the equivalent "line" of resistance that SPX might get 
back up to if a rally got some traction.  I'm not discounting the 
fact that the indices went out at their lows and bearish 
sentiment is running very high - where are the buyers going to 
come from.  There are always some willing buyers if they think 
they can make a buck and the sellers see advantages to waiting 
for a next rally to sell into.  Time will tell - stay tuned!

Dow Index (1/100: $DJX.X) - Daily/Hourly charts:


  

If DJX can rebound to above 82.5, possible upside is back up to 
first trendline resistance around 85.5-86. If the Dow continues 
to sink, 8,000 is potential support. Given the oversold 
condition, sellers are likely to stop pressing the short side at 
DJX 80 or Dow 8000, unless Monday brings some huge new negative 
story of corporate chicanery.  The Dow has followed the other 
indices to exceed its intraday, post 9/11 low.    

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


 

QQQ may be turning the corner, given the minor emerging up trend 
patter of slightly higher recent Hourly lows and the apparent 
sideways trend to the past week's lows on the Daily chart.  

I also think that a close eye needs to be kept on Cisco (CSCO), 
in case it starts rapidly sinking again to its prior lows around 
12.3 - stock went out at 13.6.  Microsoft (MSFT) is another 
potential loose cannon that could lead to a new down leg in the 
Q's if the stock can't find support again in the 48.3-49 area - 
MSFT closed the week at 49.56.  

On the Friday Market Monitor, I recommended going long QQQ at 
23.30 if the opening looks lower - this in order to try to stay 
out of the way of opening volatility on the downside, only to see 
the stock rebound later.  I think that QQQ can get back up to 26 
area again, especially if MSFT and CSCO stabilize. I rely a lot 
on the bellwether big cap Nasdaq stocks as a guide to trading the 
Nasdaq 100 (NDX) and its tracking stock (QQQ).  

If there is another downside break, 23.00 is a minimum next 
target, but with potential to the 22 area thereafter. 

Leigh Stevens
Chief Market Strategist 
lstevens@OptionInvestor.com 


************************Advertisement*************************
If you trade options online, then you need an online broker that:
offers true direct access to each option exchange offers stop and 
stop loss online option orders offers contingent option 
orders based on the price of the option or stock offers 
online spread order entry for net debit or credit 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
**************************************************************



**************
Editor's Plays
**************

Only One

Only one play this week. Considering the chances for a major
drop on Monday/Tuesday and a strong rebound I have picked one
target shooting play as a candidate for next week. There are
any number of good stocks you can pick for put plays at the 
open on Monday but with August options highly priced it would
require a major move to profit before premium decayed. 

I think it is better to try and target shoot the indexes and 
buy calls on the way down with a staggered position approach.
Since we have no idea how far or how fast these indexes will 
move the concept will involve entering a portion of your total
position as certain price points are passed. Only with a 
disaster drop will the complete position be entered. 

This play assumes a market drop on Monday/Tuesday and a relief
rebound before the end of the week. This is only a trading
play and it is expected that the market will end down for the
week. 


QQQ - Nasdaq tracking stock.


chart of the QQQ


 
Chart of the NDX


 


Using the QQQs we know that the low from the prior week was
$23.53. If the NDX is holding above the 1997 lows of 930, the
low last week was 945, then we could assume a fairly narrow
trading range on the QQQ. It has been moving between 23.75 and
26.25 for three weeks. The odds are good that we will see a
dip on Monday/Tuesday and a rebound for at least one day.

It is currently $23.99. Since it is likely to open down on
Monday we will set our first buy stop at 23.50, just below 
last weeks low. We are going to use the Aug-$24 call, which is
ask today at $1.50. As it falls farther out of the money the 
premium will drop drastically. For instance the $25 call is 
only $1.05. This would mean the $24 call would be $1.05 with
the QQQ at $23.00. (all prices are estimates)

For discussion purposes I am going to use a total position size
of 50 contracts. You use whatever quantity fits your account 
size and risk profile. 

The QQQ has a 40:1 ratio to the NDX. This means for every 40 points
the NDX moves the QQQ will move $1. If we are assuming the NDX 
will not drop below 925-930 or worst case 900 then we need to 
plan our entry points accordingly. The NDX closed at 965. Every
10 point move should equate to .25 on the QQQ. If we start our
acquisition program at 950 then a rough guesstimate would be $23.60
on the QQQ. We are going to skip the odd cents and make the first
buy at $23.50. We will scale into the position by adding 10 contracts
(or your multiple) at every quarter increment the QQQ moves lower. 

10 @ $23.50 (NDX 940) est $1.35 total invested $1335 avg $1.34
10 @ $23.25 (NDX 930) est $1.20 total invested $2535 avg $1.27
10 @ $23.00 (NDX 920) est $1.05 total invested $3585 avg $1.19
10 @ $22.75 (NDX 910) est $0.85 total invested $4435 avg $1.11
10 @ $22.50 (NDX 900) est $0.70 total invested $5135 avg $1.02

Assuming the NDX dipped all the way to 900 your total investment
would be $5,135 plus commissions or an average of slightly more
than $1.00 per contract. (all prices are just estimates)

If the NDX returns to the current levels 965 ($24.00) on any 
rebound then the position would be worth $1.50 per contract or 
approximately $7,500 for a 50% return. (rounded)

The risk here is that it will not return. To protect yourself
against this possibility you can buy 20 contracts of the Aug-$25
put at the open on Monday. Since the open is probably going to 
be lower than Friday's close (NDX 965, QQQ 23.99) the contracts
will cost you a little more than the $2.05 closing bid on Friday.
(This is an insurance policy and not a profit play)

Assume the NDX does fall to 900 or below and stops. At 900 the
QQQ would be around $22.50. The put contract would be worth
about $3.00 to $3.25. Closing the contract would not cover
your costs on the calls and would only defray the expense by
a $2000 or so. However it is an insurance policy against a
catastrophic loss. If the NDX continued down then the puts would
increase $1 for $1 for every point the QQQ moved lower. While 
the put contract is increasing in value the calls are not going
to cost you any more money. That $5K is already spent. 

Should the NDX drop to 840 the QQQ would be $21.00 and the put
contract worth $4.25 ($8500) You paid something around $4200 (20)
so that is a $4300 profit on the puts to offset the loss on the
calls. You are down about -$800. You would have the option of
selling the puts and owning 50 contracts of the calls for $800
and a rebound to even NDX 900 would produce a handsome profit. 
At 900 the calls should be worth $5,135 and your basis is now $800.
A rebound to 950 and the calls would be worth $7,500. You get the
idea. (all prices are estimates)

Obviously this is all pure speculation. In a perfect world the
NDX would drop to 900, trigger all 50 contracts and rebound 
back to the top of its current trading range of 1060. You do
the math. 

The put contracts are insurance and are not intended to be a
profit play. It would be totally acceptable to buy the puts
and have all the calls triggered and when the NDX rebounds 
to a profitable position on the calls (over 900) you 
sell the puts and put a stop loss on the calls. Any money
received on the puts would be gravy. You could also hold them
as insurance until the NDX recovered completely to the price 
you paid for the puts and just close them out for an even trade.
The calls would be very profitable and you would not need the
insurance anymore.

I am sure many are thinking why not just wait for NDX 900 
and buy the 50 contracts. What if it did not drop that far
before rebounding? Nobody knows where the drop will stop
and a rebound start. You could end up with 10 calls or 20 or
30 or all of them. If you wait for the bottom you may not have
any. 

What I have described is a very simple play. I hope I have not
confused you with the details. You can take any part of it
or all of it and adjust it to your situation. Maybe you are
willing to risk buying the calls naked without any insurance.
Maybe you want to start lower, around $23.00 instead of $23.50.
It is up to you. This is a guideline of a moderately safe way
to speculate on a possible drop and rebound next week.

Another option is to start slower, say 5 contracts and raise 
the number of contracts each time. This limits your initial 
investment and maximizes the dollar cost averaging impact.

5 @ $23.50 (NDX 940) est $1.35 total invested $ 675 avg $1.34
5 @ $23.25 (NDX 930) est $1.20 total invested $1275 avg $1.27
10 @ $23.00 (NDX 920) est $1.05 total invested $2325 avg $1.16
10 @ $22.75 (NDX 910) est $0.85 total invested $3175 avg $1.06
20 @ $22.50 (NDX 900) est $0.70 total invested $4575 avg $0.92


Two points: 

First, this is a trading play only and should not be held long
term. The overall market trend is still down and there is no
bottom in sight. We would like to think NDX 930 or even 900 
will hold but there are no guarantees. If you plan on holding
longer be sure to buy the puts and don't sell them until the 
play is profitable. 

Second, do not try to do this with limit buys based on option
prices. The prices quoted were the closing prices on Friday. As
the August options become current month next week the prices will
change. There is no way to predict the actual price on Monday
or Tuesday. Trying to make a limit buy in a fast moving market
more often than not leaves you standing on the sidelines unfilled.

Use a limit based on the QQQ price, NDX price or enter the orders
manually, but enter the option order at market. For 50 contracts
or less they will be filled automatically at bid/ask and nobody
will have the chance to jack you around.

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

Remember, these are high risk plays and should only be made
with risk capital.

Good Luck

Jim Brown    


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

Quicksand
By Steven Price

This is beginning to sound like a broken record, but things don't 
look so good.  The S&P broke down once again, this time below the 
877 support line from earlier in the week.  The last time the S&P 
500 reached this level was October 1997, when it traded 855.27.  
Our low today was 842.07.  Prior to that, the S&P had found some 
resistance to the upside around 800 and support in the 730 range.  
Either of these numbers could provide support levels, however it 
has been almost 5 years, so it remains to be seen how effective 
they will be.

The Dow has traded far below the lows following Sept. 11.  It 
traded as low as 7966, its lowest point since October of 1998, 
before closing at 8019.26. The 8000 support level being broken is 
significant; between August and October of that year the Dow 
bounced between 7400 and 8000, after reaching over the 9000 mark 
in July.  Of course that was on its way up.  The reason there is 
so much volatility to the downside, as reflected in the Volatility 
Index ($VIX.X) hovering over 40% recently and closing today at its 
recent high of 43.45, is that stocks (and markets) generally fall 
much faster than they climb.  Although this rule was broken during 
the Internet run-up, we all saw that the downside to that was 
pretty fast as well.

How did we get here?  Well, today's answer probably has something 
to do with Johnson and Johnson (JNJ), a Dow Jones Industrials 
component.  JNJ revealed a federal probe into production at a 
plant in Puerto Rico, which produced Eprex, a drug that has come 
under attack lately for its link to a blood disorder requiring 
lifetime transfusions.  A former employee claims he was pressed to 
cover up manufacturing lapses at the plant.  JNJ finished down 
$7.88 to $41.85.  Another major reason for the decline is the poor 
outlooks being offered by Sun Microsystems (SUNW), who predicted a 
loss in the first quarter of 2003 and shares ended down 27%.  
Plus, Ericsson (ERICY), who cut its forecast for the mobile phone 
systems market.  Ericsson CEO Kurt Hellstroem predicted a loss in 
that division for 2002 and said that there was a "lack of a 
visible turnaround point" for the telecommunications equipment 
market.  These comments echoed those of EMC, which stated it 
didn't see a return to IT customer spending any time this year.  
In addition, the Wall Street Journal reported that WorldCom might 
be filing for bankruptcy very soon, quoting an employee as 
claiming they only have enough cash left for a few more days.

Any good news?  Well actually there might be.  The NDX has held 
its support at 950 since the end of June.  The bullish percent has 
maintained its bull confirmed reading above 30%.  This means that 
roughly a third of the stocks in the Nasdaq 100 are on buy 
signals.  In the past the NDX has led the market, so I'm still 
clinging to this number as a barometer of possible turnaround.  It 
will probably be significant if turns downward. 

The S&P 500 made several changes as of the close of business 
today, prompting several end of day run-ups as fund managers 
looked to add the new companies to their portfolios.  These 
changes were announced July 9th, and include the following adds: 
United Parcel Service (UPS), Goldman Sachs (GS),Prudential 
Financial (PRU), eBay Inc. (EBAY), Principal Financial Group 
(PFG), Electronic Arts (ERTS) and SunGard Data Systems (SDS).  The 
dropped stocks are: Royal Dutch Petroleum (RD), Unilever NV 
(UN),Nortel Networks (NT), Alcan Inc. (AL), Barrick Gold Corp 
(ABX), Placer Dome Inc. (PDG), and Inco Ltd.(N).


-----------------------------------------------------------------

Market Averages

DJIA ($INDU)

52-week High: 10679
52-week Low :  7966
Current     :  8019

Moving Averages:
(Simple)

 10-dma: 8675
 50-dma: 9499
200-dma: 9814



S&P 500 ($SPX)

52-week High: 1226
52-week Low :  842
Current     :  847

Moving Averages:
(Simple)

 10-dma:  915
 50-dma: 1012
200-dma: 1093



Nasdaq-100 ($NDX)

52-week High: 1782
52-week Low :  946
Current     :  965

Moving Averages:
(Simple)

 10-dma:  998
 50-dma: 1125
200-dma: 1386



-----------------------------------------------------------------

Gold and Silver ($XAU.X)

The XAU continued its upward contrarian creep, as the equity 
markets and dollar slid.  It remains to be seen whether it can 
rebound from its highs in late May.

52-week High: dna
52-week Low : dna
Current     : 71.29

Moving Averages:
(Simple)

 10-dma: 73 
 50-dma: 78 
200-dma: 65



-----------------------------------------------------------------

Market Volatility

The Volatility Index has reached a new relative high, closing at 
43.45.  After a wild expiration week in which the Dow broke 8000, 
and the SPX reached levels not seen since 1997, the VIX 
foreshadows fear of what may lie ahead next week.  If we continue 
to fall, we may see it continue to rise above 45.  Last September 
we saw a high of 57, which shows there is plenty of room to the 
upside in a falling market.

CBOE Market Volatility Index (VIX) = 43.36 +3.41
Nasdaq-100 Volatility Index  (VXN) = 61.76 –1.85
it may seem.
-----------------------------------------------------------------

          Put/Call Ratio  Call Volume   Put Volume
Total          1.14        923,085     1,048,059
Equity Only    1.08        651,962       708,162
OEX            1.04         84,724        87,754
QQQ            0.60         83,736        50,461

-----------------------------------------------------------------

Bullish Percent Data

           Current   Change   Status
NYSE          33      - 3     Bull Correction
NASDAQ-100    31      - 4     Bull Confirmed
DOW           10      + 3     Bear Confirmed
S&P 500       17      - 4     Bear Confirmed
S&P 100       12      - 3     Bear Confirmed

Bullish percent measures the number of stocks in an index 
currently trading on a buy signal on their point and figure 
chart.  Readings above 70 are considered overbought, and readings 
below 30 are considered oversold.

Bull Confirmed  - Aggressively long
Bull Alert      - Cautiously long
Bull Correction - Pause or pullback in upward trend
Bear Alert      - Take defensive action if long
Bear Confirmed  - High risk if long, good conditions for shorting
Bear Correction - Pause or rebound in downtrend

-----------------------------------------------------------------

 5-Day Arms Index  1.41
10-Day Arms Index  1.42
21-Day Arms Index  1.48
55-Day Arms Index  1.38

Extreme readings above 1.5 are bullish, and readings below .85 
are bearish.  These signals don't occur often and tend be early, 
but when the do, they can signal significant market turning 
points.

-----------------------------------------------------------------

Market Internals

        Advancers     Decliners
NYSE        732          2418
NASDAQ      930          2469

        New Highs      New Lows
NYSE        28            297
NASDAQ      62            191

        Volume (in millions)
NYSE     2,996
NASDAQ   3,097

-----------------------------------------------------------------

Commitments Of Traders Report: 07/16/02

Weekly COT report discloses positions held by small specs
and commercial traders of index futures contracts at the 
Chicago Mercantile Exchange and Chicago Board of Trade. COT data 
can be found at www.cftc.gov.

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 tend 
to be wrong.  

S&P 500

Commercials increased their short positions by 25% as the markets 
fell in the last period, while the small traders added almost 
17,000 contracts to their long position.


Commercials   Long      Short      Net     % Of OI 
06/18/02      437,530   487,956   (50,426)   (5.4%)
06/25/02      378,214   438,775   (60,561)   (7.4%)
07/09/02      396,321   456,164   (59,843)   (7.0%)
07/16/02      388,943   464,162   (75,219)   (8.8%)

Most bearish reading of the year: (111,956) -   3/6/02
Most bullish reading of the year: ( 36,481) - 10/16/01

Small Traders Long      Short      Net     % of OI
06/18/02      181,178    88,517    92,661     34.3%
06/25/02      134,380    62,792    71,588     36.3%
07/09/02      145,017    71,402    73,615     34.0%
07/16/02      157,370    67,247    90,123     40.1%

Most bearish reading of the year:  36,513 - 5/01/01
Most bullish reading of the year: 114,510 - 3/26/02
 
NASDAQ-100

Commercials reduced their short positions by over 20% as the NDX 
held its own against the other market indices.  Small traders 
reduced their overall long position by adding 2,000 short 
contracts.


Commercials   Long      Short      Net     % of OI 
06/18/02       54,816     49,169     5,647    5.4%
06/25/02       27,238     35,926    (8,688) (13.8%)
07/09/02       31,227     39,592    (8,725) (12.3%)
07/16/02       33,152     39,866    (6,714) ( 9.2%)

Most bearish reading of the year: (15,521) -  3/13/02
Most bullish reading of the year:   9,068  - 06/11/02

Small Traders  Long     Short      Net     % of OI
06/18/02       20,883    29,153    (8,270)   (16.5%)
06/25/02       14,749     7,570     7,179     32.2%
07/09/02       12,520     8,348     4,175     20.0%
07/16/02       12,816    10,774     2,042      8.7%

Most bearish reading of the year: (10,769) - 06/11/02
Most bullish reading of the year:   8,460  -  3/13/02

DOW JONES INDUSTRIAL

Commercials remained virtually unchanged, while the small traders 
shifted from a small long position to a decidedly short position. 


Commercials   Long      Short      Net     % of OI
06/18/02       25,995    19,115    6,880     15.1%
06/25/02       18,016    13,255    4,761     15.2%
07/09/02       20,761    14,122    6,639     19.0%
07/16/02       20,357    14,074    6,283     18.2%

Most bearish reading of the year: (8,322) -  1/16/01
Most bullish reading of the year: 15,135  - 10/16/01

Small Traders  Long      Short     Net     % of OI
06/18/02        5,379    11,813    (6,434)   (37.2%)
06/25/02        6,414     6,597       183     1.40% 
07/09/02        6,831     6,623       208     1.50%
07/16/02        8,524    10,133    (1,609)   (8.62%)

Most bearish reading of the year:  (8,777) - 10/12/01
Most bullish reading of the year:   1,909  -  1/16/01

-----------------------------------------------------------------


************************Advertisement*************************
”If you haven’t traded options online – you haven’t really traded 
options,” claims author Larry Spears in his new compact guide book:

“7 Steps to Success – Trading Options Online”.

Order today and save 25% (only $15) by clicking on PreferredTrade 
and clicking on the link to the book on its home page.

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


***************
ASK THE ANALYST
***************

How To Be A Good Trader
By Eric Utley

Over the years I’ve accumulated what I consider to be a fair amount
of knowledge about the market.  I’ve learned how it works.  I’ve
learned of its nuances, its quirks, and of its seemingly illogical
and unexplainable ways.

It wasn’t an easy education, I’ll be the first to admit.  In fact
the market was the most difficult subject of study that I have
ever taken on.  My engineering courses in college, when I was
studying chemical engineering, were a walk in the park compared
to what I’ve been through with the market.

But for all of its challenges, like a few blown-up accounts, the
market has been the most rewarding, the most fulfilling aspect of
my life to date.  I think there are a couple of reasons for that.
First, the market has taught me more about myself than any person
or intangible experience.  And its requirement of constant
learning is reward enough in itself.  But I’ll be honest, it’s the
money that’s most important to me, and all that the money
represents.

Instead of a few charts this weekend, I’d like to share with you
what I think it takes to win the game.

Please send your questions and suggestions to:

Contact Support 

----------------------------

Risk Management

Day trader, scalper, swing trader, investor – these are all fancy
terms for what is a risk manager. 

The single most important aspect of any and every operation in the
market is risk management.  Period!  Those fund managers who boast
on Stock TV that they don’t use stop losses, who arrogantly
believe that they’re right and the market is wrong, who under
perform the market in most years, are idiots.  They don’t win
because they don’t know how to lose.

I’ve read in dozens of trading texts that a trader should play to
win, that he should not play to lose.  Wrong!  That axiom, if you
want to call it that, is the single most flawed piece of “advice”
that I’ve ever read.  A trader should, first and foremost, play
not to lose.  Take care of not losing first, then prepare to win.
Capital is the trader’s inventory, capital is most precious.

Warren Buffett is one of few billionaires who created his wealth in
the market.  Warren Buffett once said play not to lose.

----------------------------

Method

Most ends have myriad means by which they are reached.  It’s not
so important by what means an end is reached.  It is most
important to have some sort of defined means to reach an end.

I haven’t read Mark Phillips’ business plan that he uses for his
own trading.  But I know he has one because he’s a good trader.
Mark Phillips takes money out of the market by means which are
unique to him.

Jeff Bailey has a way that he approaches the market that is so
unique I can’t put it into words.  I don’t know if he can.  But
he has a method all right, that’s why he takes money out of the
market year after year.

Approaching the market from a haphazard, random direction,
without a defined way to operate is walking into an end that
I don’t think most want to reach in the market.  It’s an end
where Jeff and Mark are taking the opposite side of your trade
and, believe me, that’s not a good place to be.

It took me years to find a methodology with which to approach
the market.  But I found it, and my method works.  In some ways
it’s very similar to what Jeff and Mark use, it other ways it’s
a world apart.

----------------------------

Discipline

The man without discipline is the man without purpose and
direction.  If your purpose in the market is to make money,
then your direction had better along the side of discipline.

Discipline, in the market, means adhering to your unique
method.  One of the biggest mistakes that I’ve made over the
years is not following what works for me.  That comes with
arrogance, which the market quickly removes once it surfaces
in your psyche.  Find what works.  Do it.

----------------------------

The End

It is that simple, successful trading can be reduced to just
these three principles that I consider the ingredients of
mastery: risk management, methodology, discipline.

There’s much more than the ambiguity that I’ve offered, more
science, more logic, more reason, more rational.  But those are
the things for you to figure out, because only you can take it that
next step.  No one else can do it for you, neither Jeff nor Mark
nor myself.

Best of luck!

----------------------------


DISCLAIMER:
This column is an information service only.  The information
provided herein is not to be construed as an offer to buy or
sell securities of any kind.  The Ask the Analyst picks are not
to be considered a recommendation of any stock or option but an
information resource to aid the investor in making an informed
decision regarding trading in options.  It is possible at this
or some subsequent date, the editor and staff of The Option
Investor Newsletter may own, buy or sell securities presented.
All investors should consult a qualified professional before
trading in any security.  The information provided has been
obtained from sources deemed reliable, but is not guaranteed


*************
COMING EVENTS
*************

==================================================
Market Watch for the week of July 22nd
==================================================

------------------------
Major Earnings This Week
------------------------

Symbol  Company               Date           Comment      EPS Est

------------------------- MONDAY -------------------------------

MMM    3M Company             Mon, Jul 22  Before the Bell   1.34
ALTR   Altera Corporation     Mon, Jul 22  -----N/A-----     0.05
AXP    American Express       Mon, Jul 22  -----N/A-----     0.50
ANAT   American National Ins  Mon, Jul 22  -----N/A-----     1.40
AME    AMETEK                 Mon, Jul 22  After the Bell    0.63
AHG    Apria Healthcare Group Mon, Jul 22  Before the Bell   0.42
ASH    Ashland                Mon, Jul 22  Before the Bell   1.04
AWE    AT&T Wireless Services Mon, Jul 22  -----N/A-----     0.00
AV     Avaya                  Mon, Jul 22  After the Bell   -0.04
BOH    Bank of Hawaii Corp    Mon, Jul 22  Before the Bell   0.41
BKNG   Banknorth Group        Mon, Jul 22  Before the Bell   0.50
BLS    BellSouth              Mon, Jul 22  Before the Bell   0.57
BWA    BorgWarner, Inc.       Mon, Jul 22  -----N/A-----     1.67
BG     Bunge Limited          Mon, Jul 22  Before the Bell   0.38
CNI    Canadian Nat Railway   Mon, Jul 22  After the Bell    0.86
CECO   Career Education       Mon, Jul 22  After the Bell    0.18
CHKP   Check Point Sftwr Tech Mon, Jul 22  -----N/A-----     0.25
DNB    D&B Corp.              Mon, Jul 22  After the Bell    0.40
DHI    D.R. Horton            Mon, Jul 22  Before the Bell   0.65
XRAY   DENTSPLY International Mon, Jul 22  After the Bell    0.44
EEP    Enbridge Enrgy Prtnrs  Mon, Jul 22  After the Bell    0.40
RE     Everest Reinsurance    Mon, Jul 22  After the Bell    1.31
ESA    Extended Stay America  Mon, Jul 22  After the Bell    0.19
FHR    Fairmont Htls & Resrt  Mon, Jul 22  -----N/A-----     0.29
FISV   Fiserv                 Mon, Jul 22  After the Bell    0.34
HAS    Hasbro                 Mon, Jul 22  Before the Bell  -0.06
HE     Hawaiian Electric      Mon, Jul 22  After the Bell    0.79
ICBC   Independence Comm Bank Mon, Jul 22  After the Bell    0.54
INET   Instinet Group Llc     Mon, Jul 22  -----N/A-----      N/A
KEM    Kemet                  Mon, Jul 22  After the Bell    0.02
LEA    Lear                   Mon, Jul 22  Before the Bell   1.18
LEE    Lee Enterprises        Mon, Jul 22  -----N/A-----     0.42
LXK    Lexmark Intl, Inc      Mon, Jul 22  Before the Bell   0.61
LPNT   LifePoint Hospitals    Mon, Jul 22  After the Bell    0.28
MWV    MeadWestvaco           Mon, Jul 22  Before the Bell   0.06
MCO    Moody`s                Mon, Jul 22  After the Bell    0.40
NFX    Newfield Exploration   Mon, Jul 22  -----N/A-----     0.41
NHY    Norsk Hydro            Mon, Jul 22  Before the Bell    N/A
NBP    Northern Border Prtnrs Mon, Jul 22  After the Bell    0.64
NVS    Novartis AG            Mon, Jul 22  -----N/A-----     0.43
NVLS   Novellus Systems       Mon, Jul 22  After the Bell    0.08
OXY    Occidental Petroleum   Mon, Jul 22  -----N/A-----     0.62
PRK    Park National          Mon, Jul 22  -----N/A-----      N/A
PAS    PepsiAmericas          Mon, Jul 22  After the Bell    0.34
PSC    Philadelphia Suburban  Mon, Jul 22  Before the Bell   0.20
DGX    Quest Diagnostics      Mon, Jul 22  After the Bell    0.83
RYN    Rayonier               Mon, Jul 22  After the Bell    0.45
RNR    RenaissanceRe Holdings Mon, Jul 22  After the Bell    0.98
SAFC   SAFECO                 Mon, Jul 22  Before the Bell   0.30
SLAB   Silicon Laboratories   Mon, Jul 22  After the Bell    0.06
FHR    Fairmont Htls & Rsrts  Mon, Jul 22  -----N/A-----     0.29
FISV   Fiserv                 Mon, Jul 22  After the Bell    0.34
HAS    Hasbro                 Mon, Jul 22  Before the Bell  -0.06
HE     Hawaiian Electric      Mon, Jul 22  After the Bell    0.79
ICBC   Independence Comm Bank Mon, Jul 22  After the Bell    0.54
INET   Instinet Group Llc     Mon, Jul 22  -----N/A-----      N/A
KEM    Kemet                  Mon, Jul 22  After the Bell    0.02
LEA    Lear                   Mon, Jul 22  Before the Bell   1.18
LEE    Lee Enterprises        Mon, Jul 22  -----N/A-----     0.42
LXK    Lexmark Intl, Inc      Mon, Jul 22  Before the Bell   0.61
LPNT   LifePoint Hospitals    Mon, Jul 22  After the Bell    0.28
MWV    MeadWestvaco           Mon, Jul 22  Before the Bell   0.06
MCO    Moody`s                Mon, Jul 22  After the Bell    0.40
NFX    Newfield Exploration   Mon, Jul 22  -----N/A-----     0.41
NHY    Norsk Hydro            Mon, Jul 22  Before the Bell    N/A
NBP    Northern Border Prtnrs Mon, Jul 22  After the Bell    0.64
NVS    Novartis AG            Mon, Jul 22  -----N/A-----     0.43
NVLS   Novellus Systems       Mon, Jul 22  After the Bell    0.08
OXY    Occidental Petroleum   Mon, Jul 22  -----N/A-----     0.62
PRK    Park National          Mon, Jul 22  -----N/A-----      N/A
PAS    PepsiAmericas          Mon, Jul 22  After the Bell    0.34
PSC    Philadelphia Suburban  Mon, Jul 22  Before the Bell   0.20
DGX    Quest Diagnostics      Mon, Jul 22  After the Bell    0.83
RYN    Rayonier               Mon, Jul 22  After the Bell    0.45
RNR    RenaissanceRe Holdings Mon, Jul 22  After the Bell    0.98
SAFC   SAFECO                 Mon, Jul 22  Before the Bell   0.30
SLAB   Silicon Laboratories   Mon, Jul 22  After the Bell    0.06
TXN    Texas Instruments      Mon, Jul 22  After the Bell    0.06
TRP    TransCanada Pipelines  Mon, Jul 22  After the Bell    0.23
UDR    United Dominion Realty Mon, Jul 22  After the Bell    0.42
X      Un. States Steel Corp. Mon, Jul 22  After the Bell   -0.07

------------------------- TUESDAY ------------------------------

NDN    99 CENTS Only          Tue, Jul 23  Before the Bell   0.19
ATVI   Activision             Tue, Jul 23  After the Bell    0.18
ACXM   Acxiom                 Tue, Jul 23  After the Bell    0.12
AFCI   Advanced Fibre Comm    Tue, Jul 23  After the Bell    0.02
AFL    AFLAC                  Tue, Jul 23  After the Bell    0.37
APD    Air Products & Chem    Tue, Jul 23  Before the Bell   0.60
AC     Alliance Capital Mana  Tue, Jul 23  -----N/A-----     0.59
ALD    Allied Capital         Tue, Jul 23  Before the Bell   0.57
AMZN   Amazon.com             Tue, Jul 23  After the Bell   -0.06
DOX    Amdocs Limited         Tue, Jul 23  After the Bell    0.20
AMX    America Movil,         Tue, Jul 23  After the Bell    0.10
AMCC   App. Micro Crcuts Corp Tue, Jul 23  After the Bell   -0.05
ARMHY  ARM Holdings Plc.      Tue, Jul 23  Before the Bell   0.05
T      AT&T                   Tue, Jul 23  Before the Bell   0.03
AVB    Avalonbay Communities  Tue, Jul 23  After the Bell    0.95
AVY    Avery Dennison         Tue, Jul 23  During the Market 0.72
BMS    Bemis                  Tue, Jul 23  Before the Bell   0.76
BJS    BJ Services            Tue, Jul 23  Before the Bell   0.18
BDK    Black & Decker         Tue, Jul 23  Before the Bell   0.63
BXP    Boston Properties      Tue, Jul 23  After the Bell    0.99
BSX    Boston Scientific      Tue, Jul 23  After the Bell    0.22
BMY    Bristol-Myers Squibb   Tue, Jul 23  -----N/A-----     0.26
BNI    Burlington No Santa Fe Tue, Jul 23  Before the Bell   0.49
CHRW   C.H. Robinson Wrldwde  Tue, Jul 23  After the Bell    0.28
CDN    Cadence Design Systems Tue, Jul 23  After the Bell    0.24
CP     Canadian Pac Railway   Tue, Jul 23  After the Bell    0.38
CEY    Certegy                Tue, Jul 23  Before the Bell   0.32
GIB    CGI Group              Tue, Jul 23  Before the Bell    N/A
CIT    CIT Group              Tue, Jul 23  Before the Bell   0.84
CL     Colgate-Palmolive      Tue, Jul 23  -----N/A-----     0.54
COC    Conoco                 Tue, Jul 23  -----N/A-----     0.34
CBE    Cooper Industries      Tue, Jul 23  Before the Bell   0.68
GLW    Corning                Tue, Jul 23  After the Bell   -0.09
CK     Crompton Corporation   Tue, Jul 23  After the Bell    0.15
DASTY  Dassault Systemes SA   Tue, Jul 23  -----N/A-----     0.23
DUK    Duke Energy            Tue, Jul 23  Before the Bell   0.51
ECL    Ecolab                 Tue, Jul 23  Before the Bell   0.42
EW    Edwards Lifesciences    Tue, Jul 23  After the Bell    0.34
ELE    Endesa, S.A.           Tue, Jul 23  Before the Bell    N/A
EC     Engelhard              Tue, Jul 23  Before the Bell   0.44
EQT    Equitable Resources    Tue, Jul 23  Before the Bell   0.46
EXPE   Expedia                Tue, Jul 23  After the Bell    0.41
FCS    Fairchild Semicon Intl Tue, Jul 23  After the Bell    0.04
FII    Federated Investors B  Tue, Jul 23  After the Bell    0.45
FCNCA  First Cit BancShares   Tue, Jul 23  -----N/A-----      N/A
FLEX   Flextronics            Tue, Jul 23  -----N/A-----     0.06
FLS    Flowserve              Tue, Jul 23  Before the Bell   0.47
FRE    Freddie Mac            Tue, Jul 23  Before the Bell   1.22
GMT    GATX                   Tue, Jul 23  -----N/A-----     0.42
G      Gillette               Tue, Jul 23  Before the Bell   0.25
GR    Goodrich Corporation    Tue, Jul 23  After the Bell    0.56
GT    Goodyear Tire & Rubber  Tue, Jul 23  -----N/A-----     0.12
GLK    Great Lakes Chemical   Tue, Jul 23  After the Bell    0.31
HHS    Harte-Hanks            Tue, Jul 23  After the Bell    0.24
HCP    Health Care Property   Tue, Jul 23  Before the Bell   0.88
HMA    Hlth Mngmnt Ass, Inc.  Tue, Jul 23  Before the Bell   0.26
HSY    Hershey Foods          Tue, Jul 23  -----N/A-----     0.44
HRH    Hilb, Rogal&Hamilton   Tue, Jul 23  Before the Bell   0.37
ROOM   Hotels.com             Tue, Jul 23  Before the Bell   0.36
IMO    Imperial Oil Limited   Tue, Jul 23  -----N/A-----      N/A
N      Inco                   Tue, Jul 23  -----N/A-----     0.25
IGT    Intl Gaming Technology Tue, Jul 23  -----N/A-----     0.89
IPCR   IPC Holdings           Tue, Jul 23  After the Bell    0.88
JKHY   Jack Henry & Ass       Tue, Jul 23  Before the Bell   0.17
KMB    Kimberly Clark         Tue, Jul 23  Before the Bell   0.85
LAF    Lafarge North America  Tue, Jul 23  After the Bell    1.35
LRCX   Lam Research           Tue, Jul 23  After the Bell   -0.07
LRY    Liberty Property Trust Tue, Jul 23  -----N/A-----     0.85
LLTC   Linear Technology      Tue, Jul 23  After the Bell    0.17
LOGI   Logitech International Tue, Jul 23  -----N/A-----     0.15
LOGI   Logitech International Tue, Jul 23  During the Market 0.15
LZ     Lubrizol               Tue, Jul 23  Before the Bell   0.64
LU     Lucent Technologies    Tue, Jul 23  Before the Bell  -0.14
MXO    Maxtor                 Tue, Jul 23  After the Bell   -0.36
MCK    McKesson Corporation   Tue, Jul 23  -----N/A-----      0.4
MGM    Metro-Goldwyn-Mayer    Tue, Jul 23  Before the Bell  -0.47
OOM    MMO2                   Tue, Jul 23  Before the Bell    N/A
MOLX   Molex                  Tue, Jul 23  After the Bell    0.13
MON    Monsanto Co.           Tue, Jul 23  Before the Bell   1.07
NBL    Noble Energy, Inc.     Tue, Jul 23  After the Bell    0.07
NU     Northeast Utilities    Tue, Jul 23  Before the Bell   0.25
ORLY   O`Reilly Automotive    Tue, Jul 23  After the Bell    0.42
OI     Owens Illinois         Tue, Jul 23  After the Bell    0.61
PTV    Pactiv                 Tue, Jul 23  After the Bell    0.36
PYPL   PayPal, Inc.           Tue, Jul 23  Before the Bell   0.08
PNR    Pentair                Tue, Jul 23  Before the Bell   0.85
PHA    Pharmacia Corporation  Tue, Jul 23  Before the Bell   0.64
P      Phillips Petroleum     Tue, Jul 23  Before the Bell   1.03
PNW    Pinnacle West          Tue, Jul 23  Before the Bell   0.91
PPL    PPL Corporation        Tue, Jul 23  Before the Bell   0.60
PHM    Pulte Homes Inc.       Tue, Jul 23  Before the Bell   1.40
RSH    Radio Shack Corp       Tue, Jul 23  Before the Bell   0.29
RTRSY  Reuters Group          Tue, Jul 23  Before the Bell    N/A
ROK    Rockwell Automation    Tue, Jul 23  Before the Bell   0.26
SBC    SBC Communications     Tue, Jul 23  Before the Bell   0.59
SRE    Sempra Energy          Tue, Jul 23  Before the Bell   0.63
SIAL   Sigma-Aldrich          Tue, Jul 23  After the Bell    0.57
SSCC   Smurfit-Stone Cont     Tue, Jul 23  Before the Bell   0.04
SPW    SPX                    Tue, Jul 23  Before the Bell   2.13
JOE    St. Joe Company        Tue, Jul 23  Before the Bell   0.16
SPC    St. Paul Companies     Tue, Jul 23  Before the Bell  -0.95
STE    Steris                 Tue, Jul 23  Before the Bell   0.14
STM    STMicroelectrnics N.V. Tue, Jul 23  After the Bell    0.12
STK    Storage Technology     Tue, Jul 23  After the Bell    0.17
TMO    Thermo Electron        Tue, Jul 23  After the Bell    0.22
TMCS   Ticketmaster           Tue, Jul 23  After the Bell    0.17
TDW    Tidewater              Tue, Jul 23  Before the Bell   0.46
TYC    Tyco International     Tue, Jul 23  Before the Bell   0.45
UPS    United Parcel Service  Tue, Jul 23  Before the Bell   N/A
UST    UST Inc                Tue, Jul 23  Before the Bell   0.80
VSEA   Varian Semiconductor   Tue, Jul 23  After the Bell    0.08
VOLVY  Volvo AB               Tue, Jul 23  -----N/A-----      N/A
WAT    Waters Corporation     Tue, Jul 23  Before the Bell   0.29
WSTC   West Corporation       Tue, Jul 23  After the Bell    0.30
WY     Weyerhaeuser           Tue, Jul 23  Before the Bell   0.27
WWY    Wm. Wrigley Jr.        Tue, Jul 23  -----N/A-----     0.49
WPS    WPS Resources          Tue, Jul 23  After the Bell    0.43
WYE    Wyeth                  Tue, Jul 23  Before the Bell   0.45
XTO    XTO Energy             Tue, Jul 23  Before the Bell   0.36
YRK    York International     Tue, Jul 23  After the Bell    1.19
YUM    Yum! Brands, Inc.      Tue, Jul 23  After the Bell    0.43

-----------------------  WEDNESDAY -----------------------------

ABB    ABB Ltd.               Wed, Jul 24  Before the Bell    N/A
ABY    Abitibi-Consolidated   Wed, Jul 24  -----N/A-----      N/A
ADO    Adecco SA              Wed, Jul 24  -----N/A-----      N/A
ADVP   AdvancePCS             Wed, Jul 24  After the Bell    0.35
AKZOY  Akzo Nobel N.V.        Wed, Jul 24  Before the Bell    N/A
AGN    Allergan               Wed, Jul 24  Before the Bell   0.44
AHC    Amerada Hess           Wed, Jul 24  -----N/A-----     1.93
AXL    Am Axle & Manu Hldngs  Wed, Jul 24  -----N/A-----     0.89
AMGN   Amgen                  Wed, Jul 24  After the Bell    0.34
BUD    Anheuser-Busch         Wed, Jul 24  -----N/A-----     0.66
AOL    AOL Time Warner        Wed, Jul 24  After the Bell    0.22
ADM    Archer Dnls Midland Co Wed, Jul 24  Before the Bell   0.18
BPC    Banco Com Portugues    Wed, Jul 24  After the Bell     N/A
BCE    BCE                    Wed, Jul 24  Before the Bell   0.28
BDX    Becton Dickinson       Wed, Jul 24  After the Bell    0.48
BLC    Belo                   Wed, Jul 24  Before the Bell   0.30
BBI    Blockbuster            Wed, Jul 24  Before the Bell   0.22
BOBJ   Business Objects S.A   Wed, Jul 24  Before the Bell   0.17
CBT    Cabot                  Wed, Jul 24  After the Bell    0.38
CFFN   Capitol Federal Fncl   Wed, Jul 24  Before the Bell   0.30
CMX    Caremark Rx            Wed, Jul 24  -----N/A-----     0.25
CDX    Catellus Development   Wed, Jul 24  After the Bell     N/A
CHIR   Chiron                 Wed, Jul 24  After the Bell    0.26
CYH    Community Health Sys   Wed, Jul 24  After the Bell    0.21
BVN    Compania Minas Buena   Wed, Jul 24  After the Bell    0.40
CNX    CONSOL Energy          Wed, Jul 24  -----N/A-----     0.23
CVG    Convergys Corporation  Wed, Jul 24  -----N/A-----     0.35
CAM    Cooper Cameron         Wed, Jul 24  Before the Bell   0.38
CCR    Countrywide Credit Ind Wed, Jul 24  -----N/A-----     1.35
CFR    Cullen/Frost Bankers   Wed, Jul 24  Before the Bell   0.54
DBD    Diebold                Wed, Jul 24  Before the Bell   0.54
DST    DST Systems            Wed, Jul 24  After the Bell    0.45
DD     DuPont                 Wed, Jul 24  Before the Bell   0.66
EDS    Electronic Data Sys    Wed, Jul 24  After the Bell    0.76
ENB    Enbridge               Wed, Jul 24  -----N/A-----      N/A
ENT    Equant NV              Wed, Jul 24  After the Bell   -0.30
ESRX   Express Scripts A      Wed, Jul 24  After the Bell    0.59
FNF    Fidelity National Fncl Wed, Jul 24  Before the Bell   0.94
FR     First Indl Rlty Trust  Wed, Jul 24  After the Bell    0.86
FE     FirstEnergy            Wed, Jul 24  -----N/A-----     0.70
FTI    Fmc Technologies, Inc. Wed, Jul 24  After the Bell    0.23
FBN    Furniture Brands Intl  Wed, Jul 24  After the Bell    0.56
GILD   Gilead Sciences        Wed, Jul 24  After the Bell    0.04
GSK    GlaxoSmithKline        Wed, Jul 24  -----N/A-----     0.66
GSF    GlobalSantaFe Corp.    Wed, Jul 24  Before the Bell   0.34
GG     Goldcorp               Wed, Jul 24  After the Bell    0.09
GXP    Great Plains Enrgy Inc Wed, Jul 24  After the Bell     N/A
DA     Groupe Danone          Wed, Jul 24  Before the Bell    N/A
TV     Grupo Televisa, S.A.   Wed, Jul 24  After the Bell    0.19
HAL    Halliburton            Wed, Jul 24  Before the Bell   0.16
HRS    Harris                 Wed, Jul 24  During the Market 0.40
HCA    HCA Inc.               Wed, Jul 24  -----N/A-----     0.62
HP     Helmerich & Payne      Wed, Jul 24  -----N/A-----     0.26
IKN    Ikon Office Solutions  Wed, Jul 24  Before the Bell   0.23
NDE    IndyMac Bancorp Inc.   Wed, Jul 24  Before the Bell   0.59
IFF    Intl Flavors & Frag    Wed, Jul 24  -----N/A-----     0.53
ISIL   Intersil               Wed, Jul 24  After the Bell    0.15
IVGN   Invitrogen             Wed, Jul 24  After the Bell    0.45
ITT    ITT Industries         Wed, Jul 24  Before the Bell   0.93
KMT    Kennametal             Wed, Jul 24  Before the Bell   0.69
KMG    Kerr-McGee             Wed, Jul 24  -----N/A-----     0.70
LH     Laboratory Corp.       Wed, Jul 24  After the Bell    0.54
LSI    LSI Logic              Wed, Jul 24  After the Bell   -0.09
KMT    Kennametal             Wed, Jul 24  Before the Bell   0.69
KMG    Kerr-McGee             Wed, Jul 24  -----N/A-----     0.70
LH     Laboratory Corp.       Wed, Jul 24  After the Bell    0.54
LSI    LSI Logic              Wed, Jul 24  After the Bell   -0.09
MCD    McDonald`s             Wed, Jul 24  Before the Bell   0.38
MDU    MDU Resources          Wed, Jul 24  -----N/A-----     0.40
MGG    MGM MIRAGE             Wed, Jul 24  -----N/A-----     0.49
MCRL   Micrel Semiconductor   Wed, Jul 24  After the Bell    0.00
MCL    Moore Corporation      Wed, Jul 24  After the Bell    0.10
MUR    Murphy Oil             Wed, Jul 24  After the Bell    0.06
NOI    National-Oilwell       Wed, Jul 24  Before the Bell   0.23
NEU    Neuberger Berman       Wed, Jul 24  Before the Bell   0.48
NSC    Norfolk Southern       Wed, Jul 24  Before the Bell   0.31
NCX    Nova Chemical          Wed, Jul 24  Before the Bell  -0.29
POC    P & O Princess Cruises Wed, Jul 24  Before the Bell   0.47
BTU    Peabody Energy Corp.   Wed, Jul 24  Before the Bell   0.30
PD     Phelps Dodge           Wed, Jul 24  -----N/A-----    -0.43
PXD    Pioneer Natural Rsurcs Wed, Jul 24  Before the Bell   0.13
PDG    Placer Dome            Wed, Jul 24  -----N/A-----     0.10
PMI    PMI Group              Wed, Jul 24  Before the Bell   0.96
PX     Praxair Incorporated   Wed, Jul 24  Before the Bell   0.81
PGN    Progress Energy        Wed, Jul 24  Before the Bell   0.86
PL     Protective Life        Wed, Jul 24  Before the Bell   0.62
PUK    Prudential PLC         Wed, Jul 24  -----N/A-----      N/A
RDN    Radian Group           Wed, Jul 24  After the Bell    1.11
RBK    Reebok International   Wed, Jul 24  Before the Bell   0.30
REY    Reynolds&Reynolds      Wed, Jul 24  -----N/A-----     0.41
RHA    Rhodia S.A.            Wed, Jul 24  -----N/A-----      N/A
DNY    RR Donnelley           Wed, Jul 24  -----N/A-----     0.24
R      Ryder System           Wed, Jul 24  Before the Bell   0.43
RYL    Ryland Group           Wed, Jul 24  -----N/A-----     1.22
SNY    Sanofi Synthelabo      Wed, Jul 24  -----N/A-----      N/A
SEE    Sealed Air             Wed, Jul 24  -----N/A-----     0.60
SRA    Serono S.A.            Wed, Jul 24  Before the Bell   0.13
SI     Siemens AG             Wed, Jul 24  -----N/A-----      N/A
SEO    STORA ENSO CORP        Wed, Jul 24  Before the Bell    N/A
SUN    Sunoco                 Wed, Jul 24  Before the Bell   0.00
SWMAY  Swedish Match          Wed, Jul 24  Before the Bell    N/A
TRLY   Terra Lycos, S.A.      Wed, Jul 24  -----N/A-----    -0.06
TMS    Thomson Multimedia     Wed, Jul 24  -----N/A-----      N/A
URI    United Rentals         Wed, Jul 24  Before the Bell   0.52
UCL    Unocal                 Wed, Jul 24  Before the Bell   0.51
USAI   USA Interactive        Wed, Jul 24  Before the Bell   0.09
VVC    Vectren                Wed, Jul 24  After the Bell    0.21
VMC    Vulcan Materials       Wed, Jul 24  After the Bell    0.63
BER    W.R. Berkley           Wed, Jul 24  After the Bell    0.63
WBST   Webster Financial      Wed, Jul 24  Before the Bell   0.81
WLP    WellPoint Health Ntwks Wed, Jul 24  After the Bell    1.08
WOS    WOLSELEY               Wed, Jul 24  -----N/A-----      N/A
YCC    Yankee Candle          Wed, Jul 24  -----N/A-----     0.10
ZMH    Zimmer Inc.            Wed, Jul 24  After the Bell    0.30

------------------------- THURSDAY -----------------------------

TW     21st Century Insurance Thu, Jul 25  Before the Bell   0.12
RKY    Adolph Coors           Thu, Jul 25  Before the Bell   1.58
AES    AES Corporation        Thu, Jul 25  Before the Bell   0.21
AG     AGCO                   Thu, Jul 25  Before the Bell   0.27
ATG    AGL Resources          Thu, Jul 25  Before the Bell   0.20
ALB    Albemarle              Thu, Jul 25  -----N/A-----     0.38
ACV    Alberto-Culver         Thu, Jul 25  During the Market 0.60
AT     Alltel Corporation     Thu, Jul 25  -----N/A-----     0.80
AEP    American Electric Pwer Thu, Jul 25  -----N/A-----     0.70
AIG    American Intl Group    Thu, Jul 25  -----N/A-----     0.85
APC    Anadarko Petroleum     Thu, Jul 25  Before the Bell   0.80
APA    Apache                 Thu, Jul 25  Before the Bell   0.99
ABI    Applied Biosystems     Thu, Jul 25  Before the Bell   0.20
AZN    AstraZeneca PLC        Thu, Jul 25  -----N/A-----     0.49
AN     AutoNation             Thu, Jul 25  Before the Bell   0.30
BHI    Baker Hughes           Thu, Jul 25  Before the Bell   0.21
BLL    Ball                   Thu, Jul 25  Before the Bell   0.79
ABX    Barrick Gold           Thu, Jul 25  -----N/A-----     0.11
BOL    Bausch & Lomb          Thu, Jul 25  Before the Bell   0.35
BRG    BG Group               Thu, Jul 25  -----N/A-----      N/A
BVF    Biovail Corporation    Thu, Jul 25  Before the Bell   0.38
BMC    BMC Software           Thu, Jul 25  After the Bell    0.08
BC     Brunswick              Thu, Jul 25  Before the Bell   0.43
BTY    BT Group Plc           Thu, Jul 25  -----N/A-----      N/A
CELG   Celgene                Thu, Jul 25  Before the Bell  -0.01
CTL    CenturyTel, Inc.       Thu, Jul 25  Before the Bell   0.52
CHK    Chesapeake Energy      Thu, Jul 25  After the Bell    0.13
CPS    ChoicePoint            Thu, Jul 25  Before the Bell   0.32
CINF   Cincinnati Financial   Thu, Jul 25  -----N/A-----     0.29
CIN    Cinergy                Thu, Jul 25  -----N/A-----     0.49
COLM   Columbia Sportswear    Thu, Jul 25  After the Bell    0.13
CFB    Commercial Federal     Thu, Jul 25  Before the Bell   0.60
CIV    Conectiv Incorporated  Thu, Jul 25  Before the Bell    N/A
CSX    CSX                    Thu, Jul 25  Before the Bell   0.58
DLTR   Dollar Tree Stores     Thu, Jul 25  After the Bell    0.21
DOW    Dow Chemical           Thu, Jul 25  Before the Bell   0.29
EMN    Eastman Chemical       Thu, Jul 25  After the Bell    0.47
EK     Eastman Kodak          Thu, Jul 25  Before the Bell   0.83
ERTS   Electronic Arts        Thu, Jul 25  After the Bell   -0.08
ECA    EnCana Corporation     Thu, Jul 25  -----N/A-----     0.37
ENR    Energizer Holdings     Thu, Jul 25  Before the Bell   0.17
FOE    Ferro                  Thu, Jul 25  Before the Bell   0.34
FTE    France Telecom         Thu, Jul 25  -----N/A-----      N/A
BEN    Franklin Resources     Thu, Jul 25  Before the Bell   0.48
HNT    Health Net, Inc.       Thu, Jul 25  Before the Bell   0.51
HR     Healthcare Realty Trst Thu, Jul 25  After the Bell    0.67
IGL    IMC Global             Thu, Jul 25  Before the Bell   0.05
IDCO   Interactive Data Corp  Thu, Jul 25  Before the Bell   0.14
IRF    Intl Rectifier         Thu, Jul 25  After the Bell    0.25
SFI    iStar Financial Inc.   Thu, Jul 25  Before the Bell    N/A
JDSU   JDS Uniphase           Thu, Jul 25  After the Bell   -0.03
JBLU   Jetblue Airways Corp   Thu, Jul 25  After the Bell    0.25
KSE    KeySpan Corporation    Thu, Jul 25  Before the Bell   0.21
G      Lafarge                Thu, Jul 25  -----N/A-----      N/A
LYO    Lyondell Chemical      Thu, Jul 25  Before the Bell  -0.03
MRO    Marathon Oil Corp.     Thu, Jul 25  Before the Bell   0.65
MHP    McGraw-Hill            Thu, Jul 25  Before the Bell   0.67
MEDI   MedImmune              Thu, Jul 25  Before the Bell  -0.12
MYL    Mylan Laboratories     Thu, Jul 25  Before the Bell   0.46
NFG    National Fuel Gas      Thu, Jul 25  After the Bell    0.32
NCR    NCR                    Thu, Jul 25  Before the Bell   0.33
NIPNY  NEC Corporation        Thu, Jul 25  Before the Bell    N/A
NE     Noble Corporation      Thu, Jul 25  -----N/A-----     0.42
NRD    NORANDA INC            Thu, Jul 25  -----N/A-----      N/A
NST    NSTAR                  Thu, Jul 25  -----N/A-----     0.58
OEI    Ocean Energy           Thu, Jul 25  Before the Bell   0.25
ONB    Old National Bancorp   Thu, Jul 25  Before the Bell   0.44
ORI    Old Republic Intl      Thu, Jul 25  Before the Bell   0.76
OVER   Overture Services, Inc Thu, Jul 25  After the Bell    0.25
PCAR   Paccar                 Thu, Jul 25  -----N/A-----     0.56
PY     Pechiney               Thu, Jul 25  -----N/A-----     0.25
PKI    PerkinElmer            Thu, Jul 25  Before the Bell   0.07
POT    Potash Corp of Sas     Thu, Jul 25  -----N/A-----     0.21
POM    Potomac Electric       Thu, Jul 25  -----N/A-----     0.44
PDE    Pride International    Thu, Jul 25  -----N/A-----     0.02
PLD    ProLogis Trust         Thu, Jul 25  After the Bell    0.59
QCOM   Qualcomm               Thu, Jul 25  After the Bell    0.22
O      Realty Income Corp     Thu, Jul 25  -----N/A-----     0.69
RGA    Reinsurance Grp of Am  Thu, Jul 25  After the Bell    0.67
REI    Reliant Energy         Thu, Jul 25  -----N/A-----     0.51
RRI    Reliant Resources      Thu, Jul 25  Before the Bell   0.41
RTP    Rio Tinto PLC          Thu, Jul 25  Before the Bell   2.38
RCL    Royal Caribbean        Thu, Jul 25  -----N/A-----     0.28
RPM    RPM                    Thu, Jul 25  After the Bell    0.31
SGP    Schering-Plough        Thu, Jul 25  Before the Bell   0.43
SCIO   Scios                  Thu, Jul 25  Before the Bell  -0.59
SPI    Scottish Power         Thu, Jul 25  -----N/A-----      N/A
SMG    Scotts                 Thu, Jul 25  Before the Bell   2.87
SCRI   SICOR                  Thu, Jul 25  Before the Bell   0.20
SNA    Snap-On                Thu, Jul 25  Before the Bell   0.51
SNRA   Sonera Group plc       Thu, Jul 25  Before the Bell    N/A
SNE    Sony Corporation       Thu, Jul 25  -----N/A-----      N/A
SFG    StanCorp Financial Grp Thu, Jul 25  Before the Bell   0.98
SBUX   Starbucks              Thu, Jul 25  After the Bell    0.13
HOT    Starwood Htels&Rsorts  Thu, Jul 25  Before the Bell   0.40
SV     Stilwell Financial     Thu, Jul 25  Before the Bell   0.35
SU     Suncor Energy          Thu, Jul 25  Before the Bell   0.22
TSM    Taiwan Semi Manu Com   Thu, Jul 25  Before the Bell   0.08
FAF    The First Am Corp      Thu, Jul 25  Before the Bell   0.44
PZB    The Pittston Company   Thu, Jul 25  -----N/A-----     0.22
TRH    Transatlantic Holdings Thu, Jul 25  -----N/A-----     1.09
TZA    TV Azteca S.A. de C.V. Thu, Jul 25  -----N/A-----     0.05
TXU    TXU Corp.              Thu, Jul 25  Before the Bell   0.71
UDI    Untd Defense Ind, Inc. Thu, Jul 25  Before the Bell   0.41
VCI    Valassis               Thu, Jul 25  Before the Bell   0.60
VAR    Varian Medical         Thu, Jul 25  After the Bell    0.30
VRSN   VeriSign               Thu, Jul 25  After the Bell    0.15
VVI    Viad                   Thu, Jul 25  Before the Bell   0.36
WDR    Waddell&Reed Financial Thu, Jul 25  Before the Bell   0.31
WEN    Wendy`s International  Thu, Jul 25  -----N/A-----     0.53
XEL    Xcel Energy            Thu, Jul 25  After the Bell    0.42
XRX    Xerox                  Thu, Jul 25  Before the Bell   0.00

------------------------- FRIDAY -------------------------------

LNT    Alliant Energy         Fri, Jul 26  Before the Bell   0.36
ADRX   Andrx                  Fri, Jul 26  Before the Bell   0.08
BEC    Beckman Coulter        Fri, Jul 26  Before the Bell   0.66
LNT    Alliant Energy         Fri, Jul 26  Before the Bell   0.36
ADRX   Andrx                  Fri, Jul 26  Before the Bell   0.08
BEC    Beckman Coulter        Fri, Jul 26  Before the Bell   0.66
EAS    Energy East            Fri, Jul 26  After the Bell    0.11
HCR    HCR Manor Care         Fri, Jul 26  Before the Bell   0.34
PGL    Peoples Energy         Fri, Jul 26  Before the Bell   0.27
SCG    SCANA                  Fri, Jul 26  Before the Bell   0.35
VRC    Varco                  Fri, Jul 26  Before the Bell   0.20
WEC    Wisconsin Energy       Fri, Jul 26  Before the Bell   0.31

----------------------------------------------
Upcoming Stock Splits In The Next Two Weeks...
----------------------------------------------

Symbol  Company Name              Ratio    Payable     Executable

DSWL    Deswell Industries        3:2      07/22       07/23
CHS     Chicos FAS                2:1      07/26       07/29
ACMR    A C Moore Arts & Crafts   2:1      07/31       08/01

SSD     Simpson Manufacturing     2:1      
		- awaiting shareholder approval at 7/29/02 meeting.


--------------------------
Economic Reports This Week
--------------------------

Earnings, earnings and more earnings is the name of the game
on Wall Street this week.  Current expectations are for a 
follow through from Friday into Monday's open before we bounce.
The economic front is clear through Thursday where economists
will be watching the ECI report and the New Home Sales.

==============================================================
                       -For-           

Monday, 07/22/02
----------------
None

Tuesday, 07/23/02
-----------------
None

Wednesday, 07/24/02
-------------------
None

Thursday, 07/25/02
------------------
Initial Claims (BB)   07/20  Forecast:    N/A  Previous:      N/A
Durable Orders (BB)     Jun  Forecast:   0.5%  Previous:     0.9%
Employment Cost Index(BB)Q2  Forecast:   0.9%  Previous:     0.8%
Help Wanted Index (DM)  Jun  Forecast:    N/A  Previous:       45
New Home Sales (DM)     Jun  Forecast:   960K  Previous:    1028K
Existing Home Sales (DM)Jun  Forecast:  5.73M  Previous:    5.75M

Friday, 07/26/02
----------------
Mich Sentiment-Rev. (DM)Jul  Forecast:    N/A  Previous:     86.5


Definitions:
DM=  During the Market
BB=  Before the Bell
AB=  After the Bell
NA=  Not Available


************************Advertisement*************************
Tired of waiting on trades to execute?
Does your broker offer Stop Losses on Options?

Trade instantly with Stop Losses at PreferredTrade Inc.
Stop Losses based on the option price or the stock price.
Move your trading into the next millennium with PreferredTrade.

Anything else is too slow!

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


FREE TRIAL READERS
******************

If you like the results you have been receiving we
would welcome you as a permanent subscriber.

The monthly subscription price is 39.95. The quarterly
price is 99.95 which is $20 off the monthly rate.


We would like to have you as a subscriber. You may
subscribe at any time but your subscription will not
start until your free trial is over.

To subscribe you may go to our website at

www.OptionInvestor.com

and click on "subscribe" to use our secure credit
card server or you may simply send an email to

Contact Support

with your credit card information,(number, exp date, name)
or you may call us at 303-797-0200 and give us the
information over the phone.

You may also fax the information to: 303-797-1333


**********
DISCLAIMER
**********

Please read our disclaimer at:
http://www.OptionInvestor.com/page/oin/aboutus/disclaimer.html


**************************************************************
ADVERTISING INFORMATION

For more information on advertising in OptionInvestor Newsletter,
or any Premier Investor Network newsletter please contact:

Contact Support
The Option Investor Newsletter                   Sunday 07-21-2002
Sunday                                                      2 of 5


************************Advertisement*************************
If you trade options online, then you need an online broker that:
offers true direct access to each option exchange offers stop and 
stop loss online option orders offers contingent option 
orders based on the price of the option or stock offers 
online spread order entry for net debit or credit 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
**************************************************************


**********************
INDEX TRADER GAMEPLANS
**********************

THE SECTOR BEAT - 7/21
by Leigh Stevens

There are few to any trading opportunities in terms of sectors 
as, like the market, it's too late to short them and rallies have 
not followed though buy side opportunities are not either not 
working out or are not presenting themselves. 

Previously highlighted sectors that were having rallies against 
the market trend did present trading opportunities on the short 
side and which I've highlighted this month and included Gold 
stocks, Defense, Health Care, Health Providers, Home Builders, 
Oils, and Oil Services. 

Bearish plays in these sectors and their stocks have worked well 
and these sectors (except Gold) accelerated to the downside last 
week - however, these groups are now so far off their highs that 
they are not presenting a good risk to reward for new short 
positions in the stocks or by buying puts in the sector stocks or 
in the sector options where this is an option. 

The exception may be the Gold & Silver index sector (XAU), which 
has had periodic sharp rallies - such rallies have faded and 
lacked upside follow through. I would continue to sell or "fade" 
(trade against) XAU rallies, unless the Index was to close over 
76, suggesting a bullish breakout above its down trendline; XAU 
Friday open was 72.9 and its close was 71.3.  

The small cap sectors, as represented by the S&P 600 small cap 
and Russell 2000 iShares have turned out to be disappointing as 
no bottom has developed.  

This is a stage of this bear market that could be considered to 
be a "blow off" in reverse - to the downside, and unlike the 
first half, there are NO sectors that are bucking the market 
trend by countertrend rallies or decisive upside reversals.  

Possibly Biotech is ready to buck the strong bear market trend, 
given recent rallies, as are some of the tech sectors - at least, 
"basing" sideways action is being seen in the Internet, 
Networking, Telecom, Semiconductors and Wireless sectors. When 
the overall market turns up, I will be looking at these sectors 
and evaluating their upside potential then.  

DOWN on Friday - 


 


You'll notice above from sectors down on Friday, that some of the 
sectors that I was talking as former countertrend "leaders" were 
off the most; e.g., Natural Gas, Oils, Oil Services, Forest 
products and Utilities.  

UP on Friday -

Only the Gold & Silver sector Index ($XAU.X) was up slightly on 
the day, down from its intraday high, but up from Thursday by 8 
tenths of a percent.  
 
 
SECTOR TRADE RECOMMENDATIONS & REVIEW -

NEW/OPEN TRADE RECOMMENDATIONS -

NONE


OPEN POSITIONS - 

Long SMH at 28.30   
(Semiconductor HOLDR's) 
LOWER STOP to 28.00 from 28.70 

 
TRADE LIQUIDATIONS -

Sold HHH (long at 21.50)   
(Internet HOLDR's)
On 21.20 stop, on 20.85 Friday open


SECTOR HIGHLIGHT -

NONE

Leigh Stevens
Chief Market Strategist
lstevens@OptionInvestor.com


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

For Best Alignment view in Courier Ten Font
*******************************************

CALLS              Mon    Tue    Wed    Thu   Week    

STM      24.01    1.09    0.04  -0.25  -0.61  0.25  Holding
PMCS     10.46    1.11   -0.18  -0.26  -0.22  1.11  Holding up
JNPR      8.90    0.36    0.24   0.91  -0.28  1.20  New holding trend
JNJ      41.85   -1.50   1.10   1.14   -1.51 -8.65  New, oversold


PUTS               

VZ       32.50   -0.15  -0.15   0.36   -1.31  -2.80  below channel
LOW      36.03    0.82  -2.40   0.59   -0.34  -4.15  heading LOWer
BLL      35.60    0.09  -0.07  -1.30   -0.30  -4.10  Off the Ball
INVN     25.21    1.80  -0.53  -1.21   -2.07  -0.14  Still Bearish
SBC      26.68    0.51   0.62  -1.11   -1.16  -2.32  Falling lower
BBBY     29.25   -0.17  -0.52  -0.74   -0.40  -3.13  New, Trending
CTX      45.75   -0.77  -2.17  -1.10   -0.31  -6.01  New, Trending
GDW      60.47    0.32   0.40  -1.22   -1.87   2.33  Triple Bottom
LEH      54.47   -1.11  -0.05  -1.06   -1.22  -4.48  New, failed rally
UPS      67.00   -0.25   0.00   0.50    1.10   6.25  New, losing luster
CI       82.16   -0.95  -1.97  -1.00   -2.53  -9.62  dropped, profits
BJ       33.75   -0.53  -2.17   0.03    0.49  -2.75  dropped, support
JNJ      41.85   -1.50   1.10   1.14   -1.51  -8.65  dropped, missed it
EBAY     59.45   -0.21  -0.06   0.88   -1.25  -$1.56 New, Pull your bid


************************Advertisement*************************
”If you haven’t traded options online – you haven’t really traded 
options,” claims author Larry Spears in his new compact guide book:

“7 Steps to Success – Trading Options Online”.

Order today and save 25% (only $15) by clicking on PreferredTrade 
and clicking on the link to the book on its home page.

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


********************
THE PLAYS OF THE DAY
********************

Call Play of the Day:
*********************

JNJ - Johnson & Johnson $41.85 -7.88 (-8.65 last week)

See details in play list




Put Play of the Day:
********************

UPS – United Parcel Service $67.00 (+5.74 last week)

See details in play list




**************************
PICKS WE DROPPED THIS WEEK
**************************

Remember that historically, when we drop a pick it will go up
10 to 15% the very next week. It is part of Murphy's Law.
Just because we drop a stock as a pick does not mean we are
advocating a "sell" on any position you have. We are simply
dropping our recommendation as a new play. Existing plays
can and do continue on and are usually profitable.


CALLS
^^^^^

None


PUTS
^^^^

CI $82.16 (-7.09) Quick and clean, CI provided us with a nice drop
last week, as the Insurance sector got hit by a fresh round of
selling.  With the sharp drop in the broad market on Friday, it
was impressive to see CI hold above the $80 support level.  Given
the stock's resilience in the face of the market-wide weakness,
this looks like a good time to harvest gains and move on to other
plays.  There may be some more weakness early next week, and we'll
want to use that weakness to hit an even better exit point.

---

BJ $33.75 -0.57 (-2.75) BJ has dropped since we put this play on, 
but appears to have found support - or at least slowing in its 
descent. We feel there are other stocks in the sector that have 
less support and we will concentrate our efforts elsewhere.  BJ 
has held up relatively well the last few days while the rest of 
the sector has dropped.  This is the type of signal we see as an 
opportunity to take profits and close the position, rather than 
risking a rebound.

---

JNJ $41.85 -7.88 (-8.65 for the week) This play was added 
Thursday, a day before its big drop.  While this did not provide 
our readers a chance to get in, since the stock opened down, we 
did recommend a put spread on JNJ on Thursday morning's Market 
Monitor.  We now consider this stock oversold and have added it to 
our call play list.  The news in JNJ about the criminal 
investigation into its manufacturing practices at its Eprex plant 
created a severe reaction that we feel may not be entirely 
warranted.


***********
DEFINITIONS
***********

SL  = Suggested stop loss. Sell if bid breaks this price.
OI  = Open Interest - the number of open contracts outstanding.
ITM = In the money
ATM = At the money
OTM = Out of the money
ADV = Average Daily Volume

The options with a "*" by the strike price are our choices from the
group. If the stock moves as expected we feel they have the best
chance to substantially increase or double in price with the best
risk/reward ratio compared to the other options for the same stock.
You must determine if they fit your risk profile for time and price.

Analysts ratings: 1-2-3-4-5
Analysts who follow each stock rate it and these rating are
accumulated and displayed as follows;

Position 1 = number of analysts recommending "strong buy"
Position 2 = number of analysts recommending "moderate buy"
Position 3 = number of analysts recommending "hold" or "neutral"
Position 4 = number of analysts recommending "moderate sell"
Position 5 = number of analysts recommending "strong sell"

Example rating 5-3-1-0-0 would be 5 "strong buys", 3 "moderate buys",
1 "hold" recommendation.

RISKS of SELLING PUTS:
The risk of selling naked puts is always the possibility
of a catastrophic event that drops the stock below the
strike price and could result in the stock being PUT to you.
Always protect yourself with a "buy to cover" limit order
to take you out before this can happen.


************************Advertisement*************************
Tired of waiting on trades to execute?
Does your broker offer Stop Losses on Options?

Trade instantly with Stop Losses at PreferredTrade Inc.
Stop Losses based on the option price or the stock price.
Move your trading into the next millennium with PreferredTrade.

Anything else is too slow!

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


**********
DISCLAIMER
**********

Please read our disclaimer at:
http://www.OptionInvestor.com/page/oin/aboutus/disclaimer.html


**************************************************************
ADVERTISING INFORMATION

For more information on advertising in OptionInvestor Newsletter,
or any Premier Investor Network newsletter please contact:

Contact Support
The Option Investor Newsletter                   Sunday 07-21-2002
Sunday                                                      3 of 5


************************Advertisement*************************
If you trade options online, then you need an online broker that:
offers true direct access to each option exchange offers stop and 
stop loss online option orders offers contingent option 
orders based on the price of the option or stock offers 
online spread order entry for net debit or credit 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
**************************************************************

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

PMCS - PMC-Sierra Inc. $10.46 +0.66 (+1.11 last week) 

Company Summary:
PMC-Sierra is a leading provider of high speed broadband 
communications semiconductors and MIPS-based processors for 
Enterprise, Access, Metro Optical Transport, Storage Area 
Networking and Wireless network equipment that makes up the 
backbone of the Internet. The company offers worldwide technical 
and sales support, including a network of offices throughout North 
America, Europe and Asia. PMC-Sierra is included in the S&P 500 
Index.
 
Play Description:
PMCS has been trending upward since its outside day of July 3rd, 
as it rebounded from a $7.57 low.  The bears turned this stock 
back on Wednesday from an open over $11, but it rebounded today in 
spite of Goldman Sachs downgrade to "market outperform."  They 
released earnings yesterday, showing a narrower loss and 
forecasting rising sales. Their loss was smaller than analysts 
predicted but less than the year ago figure.  The forecast is for 
break even, reflecting decent cost management at PMCS.  Chairman 
Bob Bailey said the company had benefited from newer companies 
using PMC-Sierra chips, which were currently under trial with 
telecommunications equipment makers.  

In an environment where most earnings news has come with profit 
warnings, this stock has actually projected improvement in the 
bottom line.

PMCS has lost over 60% of its value over the last year and remains 
long-term oversold, as compared to the rest of the semiconductor 
sector, which has lost approximately 35%.  This stock has held up 
well during the recent market bloodbath this last week.  The stock 
has shown a 37% rise over the last week and a half, however 
pullback attempts have been halted above $10 the last three days.  
OI sees this current level as a trigger to go long.  Resistance 
points could be $11.00 round number resistance, although the stock 
was able to overcome this level earlier in the week.  The $12.00 
mark, which acted as support in early May and resistance in mid-
June could now be resistance again, especially with the 50-dma 
just above it.  And let's not forget the $12.50 mark, an option 
strike sure to see some attention.  Bulls will see $15 above that 
level, although a 50% increase is an aggressive view.  OI will 
place its stop at $8.90, below the low for last Friday when the 
stock began its most recent run.

BUY CALL AUG-7.5*SQL-HU OI= 345 at $3.50 SL=1.75 ($.50 premium)
BUY CALL AUG-10  SQL-HB OI=2242 at $1.75 SL=0.75 
BUY CALL NOV-7.5 SQL-KU OI= 184 at $4.30 SL=2.00
BUY CALL NOV-10  SQL-KB OI= 384 at $3.00 SL=1.50
BUY CALL NOV-12  SQL-KV OI= 382 at $2.00 SL=0.90

Average Daily Volume = 6.55


---

JNJ - Johnson & Johnson $41.85 -7.88 (-8.65 last week)

Company Summary:
Johnson & Johnson, with approximately 106,100 employees, is the 
world's most comprehensive and broadly based manufacturer of 
health care products, as well as a provider of related services, 
for the consumer, pharmaceutical and medical devices and 
diagnostics markets. Johnson & Johnson has 197 operating 
companies in 54 countries around the world, selling products in 
more than 175 countries.

Play Description:
This was on yesterday's put list, as it looked to be turning 
around just under $50.00.  We were right - it opened down almost 
$8 today on news that the plant where they were producing Eprex 
may have hidden manufacturing irregularities, according to a 
former employee.  Johnson and Johnson confirmed that it is the 
subject of a criminal inquiry, and the stock tanked.

Eprex is a drug with its own problems.  Johnson and Johnson have 
been under attack by Amgen, from who they licensed Eprex.  Amgen 
has developed newer drugs, which operate similarly. However, they 
are trying to distance themselves from Eprex, which has some 
serious side effects.  JNJ came out and admitted these problems 
and warned patients not to use the product, which can lead to a 
blood disorder called PRCA that requires lifelong blood 
transfusions

Sounds pretty bad.  However, this is OLD NEWS! While the general 
public may not have known the details of the Eprex problems, 
industry insiders were well aware of them.  The idea of a 
criminal probe, in today's environment, smacks of "Enron-itis," 
however this is not a case of accounting woes.  Also hanging over 
this sector are Merck's Medco accounting problems.  While this 
stock was a sell at $50, we are looking for a bounce back up from 
this oversold level.  OI would view a price under $44.00, the 
day's intraday high, as an entry point.  We would not play this 
long if it opens above that level.  We are playing this for the 
bounce, not for a chase.  Our target would be for a strong four 
to five point bounce and then get out.  We would place stops at 
$40.00 to avoid continued downside panic selling.  This stock, 
however, opened down but maintained itself throughout the day 
above its low.

BUY CALL AUG-40 JNJ-HH OI= 116 at $4.40 SL=2.00
BUY CALL AUG-45*JNJ-HI OI=3122 at $2.00 SL=0.90 
BUY CALL OCT-40 JNJ-JH OI= 338 at $5.60 SL=3.00
BUY CALL OCT-45 OMC-JI OI= 628 at $3.20 SL=1.50

Average Daily Volume = 8.54 million



************************Advertisement*************************
”If you haven’t traded options online – you haven’t really traded 
options,” claims author Larry Spears in his new compact guide book:

“7 Steps to Success – Trading Options Online”.

Order today and save 25% (only $15) by clicking on PreferredTrade 
and clicking on the link to the book on its home page.

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


******************
CURRENT CALL PLAYS
******************

STM – STMicroelectronics N.V. $24.01 (+1.12 last week)

Company Summary:
STMicroelectonics is a global independent semiconductor company
that designs, develops, manufacturers and markets semiconductor
integrated circuits and discrete devices used in a wide variety
of microelectronic applications.  These devices include
automotive products, computer peripherals, telecommunications
systems, consumer products, industrial automation and control
systems.  The company's products include standard commodity
components, full custom devices, semi-custom devices and
application-specific standard products for analog, digital and
mixed-signal applications.

Play Description:
Up until the final hour on Friday, it really looked like the
Semiconductor Index was going to resist the negative pull of the
rest of the market.  Although it dipped into negative territory
several times, it continued to bounce back into the green.  But
the powered nose dive of the broader market finally exerted its
pull of gravity and at the end the SOX fell for a 1.25% loss on
the day.  Our STM play didn't fare quite so well, as it gapped
lower at the open and continued to deteriorate throughout the
day, ending with nearly a 5% loss.  Despite this
less-than-stellar performance, we're sticking with the play on
the basis of our expectation of a solid rally coming out of the
SOX in the near future due to the recent spate of solid earnings
news.  In addition, STM came to rest right on solid support at
the $24 level and could very well be setting us up for a fresh
entry point.  Use a rebound from this level or even stronger
support near $23 to initiate new positions.  We're keeping our
stop set at $22.50.  Don't forget to exit any open positions by
Tuesday afternoon, as the company is slated to release its
earnings report after the closing bell.

BUY CALL AUG-22 STM-HX OI=  36 at $2.70 SL=1.25
BUY CALL AUG-25*STM-HE OI=  50 at $1.40 SL=0.75
BUY CALL OCT-25 STM-JE OI= 525 at $2.55 SL=1.25
BUY CALL OCT-30 STM-JF OI=2758 at $1.05 SL=0.50

Average Daily Volume = 1.58 mln


---

Juniper Networks - JNPR $8.90 -0.03 (+1.20 last week)

Company Summary:
Headquartered in Sunnyvale, California Juniper Networks engages in 
the business of delivery of core, edge, mobile and cable Internet 
services at scale for the New Public Network. 

Play Description:
Juniper, which was added to the OI play list on Thursday, held up 
well on what was a very ugly day for the market.  With the Dow 
down almost 400 points, Juniper lost a whopping 3 cents.  It 
opened down at $8.67 but rebounded quickly, dipping only once 
before coming back again.  OI sees this as a sign of strength on a 
day when so many issues were brought to their knees.  After 
reporting strong revenues, this stock looks to continue its upward 
trend, propped up by its 50-dma of $8.09, just above its previous 
resistance of $8.00.  They reported earnings that were nil per 
share, however this was better than the expected loss, and kept 
the bulls happy.  

This stock could benefit from a bounce in the Nasdaq or a snapback 
rally in the broader markets.  We continue to see possible 
resistance points at the 100-dma of $9.70, and again at the $10.00 
round number mark.  Beyond that, $12.50 looks like a possibility.  
OI sees the current level as an entry point to go long, however, 
should the markets free fall again on Monday a dip to (but 
preferably wait for the bounce at) $8.00 or $8.50 might be an 
entry point.  Place stops below $8.00, the point of previous 
resistance.

BUY CALL AUG-7.5*JUX-HU OI=3251 at $1.90 SL=0.85
BUY CALL AUG-10  JUX-HB OI=5093 at $0.50
BUY CALL OCT-7.5 JUX-JU OI=1798 at $2.55 SL=1.20
BUY CALL OCT-10  JUX-JB OI=3232 at $1.35 SL=0.65

Average Daily Volume = 13.7 mln



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

EBAY - eBay Inc. $59.45 -1.00 (-1.70 last week)

Company Summary:
eBay is the world's online marketplace(TM). Founded in 1995, eBay 
created a powerful platform for the sale of goods and services by 
a passionate community of individuals and businesses. On any given 
day, there are millions of items across thousands of categories 
for sale on eBay through auction or fixed price formats. eBay 
enables trade on a local, national and international basis with 
customized sites in markets around the world.

Play Description:
Ebay has been the beneficiary of being added to the S&P 500, 
enjoying a last minute stock run-up to salvage its closing price.  
It was added as of the close of business Friday as part of a group 
that was announced on July 9.  The stock received a small boost 
from the announcement, and has been in a holding pattern since.  
OI sees this as a bearish sign, as we feel this propping up of the 
stock, by fund managers who have been forced to add it to their 
S&P portfolios, is only temporary.  

EBay released earnings Thursday, which were positive, however it 
also gave very conservative future guidance.  The earnings news 
had already been announced in early July, when it announced it was 
buying PayPal. Analysts have been concerned over the company's 
ability for future growth. The stock closed down on Thursday and 
only made it back up to Thursday's closing level with the need to 
add shares at today's close.

EBay's P/E ratio of 117.15 is very high, and the market has not 
been kind to high P/Es.  The stock has tried to get over the $62 
mark, but has been pushed back each time. A high of $64 would have 
been needed to turn bullish on the PnF chart, which was 
unattainable. Ebay's PnF chart remains in a bearish double bottom 
breakdown, currently working on a bearish vertical count of $51.  
There has been some PnF support at $56, but this stock has plenty 
of room on the downside.  Now that the S&P purchasing is out of 
the way, look for a fall.  OI sees Ebay under $60 as an entry 
point to go short.  Place stops at $62.50, above its recent 
attempts to break to the upside.  Our target would be the $49.50 
to $50.50 range but if it stalls near $52.50 we might take the 
money and run.

BUY PUT AUG-60 QXB-TL OI=5626 at $4.20 SL=2.00
BUY PUT AUG-55*QXB-TK OI=8740 at $2.70 SL=1.25 
BUY PUT OCT-50 QXB-VJ OI=2330 at $3.50 SL=1.50 

SELL CALL OCT-60 QXB-JL OI=3519 at $6.50 SL= 8.50
SELL CALL OCT-55 QXB-JK OI=1195 at $9.40 SL=11.40

Average Daily Volume = 6.71 mln


---

BBBY – Bed Bath & Beyond $29.25 (-3.18 last week)

Company Summary:
Bed Bath & Beyond is an operator of stores selling predominantly
better quality domestics merchandise and home furnishings
typically found in better department stores.  As of May, 2002,
the company had stores in 44 states.  Domestics merchandise
includes bed linens and related items, bath items and kitchen
textiles.  Home Furnishings include kitchen and tabletop items,
fine tabletop and giftware, basic housewares and general home
furnishings.

Play Description:
With Consumer Confidence sliding down the razor blade of life,
and Retail Sales withering as well, it should come as no surprise
that the Retail index (RLX.X) has fallen off a cliff in the past
2 weeks.  In fact, the index is rapidly approaching its September
low at $251.  Even Walmart, the king of the discount retailers
got smacked between the eyes last week for a 13% loss.  Now that
we've set the stage for the weakness in the sector, let's take a
look at our new play, BBBY.  The company caters to the higher end
of the retail segment, which is likely to be one of the first to
be hit by falling sales in a weak Retail environment.  Couple that
with expectations for weakness in the Housing arena, and shares
of BBBY could be set for a fall.  Judging by the price action last
week, we aren't the only ones following this line of thinking.
The stock broke down below longstanding support near $31 and on
Friday closed under the $30 level for the first time since early
November.  The PnF chart presents an equally ominous picture,
having recently posted a double bottom sell signal, and the
tentative price target is now $22.  That's a long ways to fall,
and we want a piece of the action.  Look to initiate new
positions on a failed rally near $30.35 (Friday's intraday
highs), $31 or $32 (intraday resistance throughout last week).
We are initially placing our stop at $32.50.

BUY PUT AUG-30*BHQ-TF OI=1426 at $2.65 SL=1.25
BUY PUT AUG-27 BHQ-TY OI= 538 at $1.45 SL=0.75

Average Daily Volume = 3.46 mln


---

CTX – Centex Corporation $45.75 (-6.21 last week)

Company Summary:
The top home builder in the U.S., CTX operates in 20 states and
Washington DC, as well as in Latin America and the UK.  The
company builds almost 19,000 homes a hear with an average price
tag of $190,000 for both first-time and move-up buyers.  The
company has subsidiaries that offer home security systems and
pest-control services, as well as construction contracting for
hospital, school, office building and hotel projects.  Rounding
out the picture, CTX has interests in land development, mortgage
banking, commercial real estate, and construction supply
manufacturing.

Play Description:
The debate rages on about whether the Housing market is in a
bubble, while at the same time, the prices of the Home
Construction stocks continue to fall.  The issue of a bubble
likely isn't at work here so much as are broad market forces.
Consumer Sentiment is falling, making people less willing to
commit to a new home purchase.  Interest rates aren't rising,
but neither are they falling anymore, removing one more catalyst
to buy now.  In short, it appears fears of a second recessionary
dip are starting to be felt even in the until-recently strong
Housing sector.  This weakness is clearly seen on the chart of
the Dow Jones US Home Construction index ($DJUSHB), which broke
several measures of support last week (including the 200-dma)
and is now resting precariously on the $300 support level.  If
that fails to hold, then the index is likely headed back towards
major support near $250.  While it has held up better than the
overall sector lately, CTX finally succumbed to the bearish
pressure last week and broke decisively below the $49 level that
has defined support since early December.  With such a significant
violation of support and on heavy volume, CTX looks like it will
need to head down near the $40 level before finding any
significant buying interest.  Now that the $49 level has failed,
we can use failed intraday rallies back to this area as ideal
entry points.  Look for an attempted rebound to occur from the
$45 area, where CTX has support, and then fade that rebound when
it runs out of steam, ideally in the $48-49 area.  Initial stops
are set rather wide at $51, where the stock continually found
resistance last week.

BUY PUT AUG-45*CTX-TI OI=400 at $3.30 SL=1.75
BUY PUT OCT-45 CTX-VI OI=846 at $4.90 SL=3.00

Average Daily Volume = 1.24 mln


---

LEH – Lehman Brothers Holdings $54.47 (-5.06 last week)

Company Summary:
Through its subsidiaries, LEH constitutes one of the leading
global investment banks, serving institutional, corporate,
government and high-net-worth individuals clients.  The company
is engaged primarily in providing financial services, including
securities writing and direct placements, corporate finance and
strategic advisory services, private equity investments and
securities sales and trading.  Completing its array of banking,
research and trading capabilities, LEH also engages in the
trading of foreign exchange, derivative products and certain
commodities.

Play Description:
To say that the Brokerage sector (XBD.X) looks sickly would be
an understatement.  One failed rally attempt after another has
dragged this group lower each week and with Friday's drop, the
index is sitting at its lowest level since late September.  Poor
market action, concerns about investor litigation and falling
revenues due to less trading is all having its effect, and the
net result is that investors want out of these stocks.  This is
clearly the case with shares of LEH, which broke down under the
$56 support level last week and is precariously close to violating
its $54 support, also the site of the 2% retracement of the fall
rally.  A quick look at the Relative Strength chart shows that
until recently, LEH was holding up better than the XBD, but now
it is playing catch up to the downside.  That gives us a great
setup for a new put play.  While another oversold rebound would
make for the best entries (ideally on a failed rally near the
$57-58 resistance level), given the predominant market weakness,
a breakdown under $54 may offer the next viable entry point.  The
PnF chart tells a similar story of weakness, with last week's
fresh sell signal giving us a tentative price objective of $47.
We are initially setting a fairly wide stop at $59, just in case
we get the bounce before support fails.  

BUY PUT AUG-55*LEH-TK OI=1442 at $3.60 SL=1.75
BUY PUT AUG-50 LEH-TJ OI= 754 at $1.70 SL=0.75

Average Daily Volume = 2.59 mln


---

UPS – United Parcel Service $67.00 (+5.74 last week)

Company Summary:
United Parcel Service is an express carrier package delivery
company and a global provider of specialized transportation and
logistics services.  The company delivers packages each business
day for 1.8 million customers to six million consignees.  In
2001, UPS delivered an average of more than 13.5 million pieces
per day worldwide.  The company's primary business is the
time-definite delivery of packages and documents throughout the
United States and in over 200 other countries and territories.
UPS has established a vast global transportation infrastructure
and developed a comprehensive portfolio of guaranteed delivery
services and supports them with advanced technology.

Play Description:
The Americanization of the S&P500 finally reached completion on
Friday, just one more factor adding to the volatility of a wild
expiration Friday.  All of the companies being added to the index
saw heavy buying at the close, as funds were loathe to take on
those positions any earlier due to the wild carnage in the broad
markets.  Shares of UPS had actually traded well for much of the
week already, having moved up from the $0 level to just over $62
on Thursday.  But the volatility became rather insane on Friday,
with the stock trading in a widening pattern between $61.50-64.00.
And that was before the huge surge in volume (more than 20
million shares) after the closing bell that traded at $67.  With
the broad market clearly in trouble and likely headed
substantially lower next week, it seems a pretty safe conclusion
that UPS will lose a lot of the luster it had going into Friday's
close.  We want to take advantage of the artificial surge to
initiate new positions that will benefit as the stock falls back
to earth.  Given the large move after the close, technical levels
are rather hard to gauge right here.  Although it is worth noting
that $67 is the site of resistance from April 2000, so it could
very possibly be where the reversal occurs.  Above there, we have
heavy resistance at $70, so we'll set our stop slightly higher at
$70.25.  Of course, if the after hours action is irrelevant (like
it often is), we could see the stock roll over at the $64
resistance level, and that would also provide for a solid entry
into the play.  After we see where the stock settles out on
Monday, we'll be able better define the action plan and set a
better level for our stop.

BUY PUT AUG-65*UPS-TM OI= 686 at $2.75 SL=1.25
BUY PUT AUG-60 UPS-TL OI=3499 at $0.90 SL=0.50

Average Daily Volume = 3.31 mln



************************Advertisement*************************
Tired of waiting on trades to execute?
Does your broker offer Stop Losses on Options?

Trade instantly with Stop Losses at PreferredTrade Inc.
Stop Losses based on the option price or the stock price.
Move your trading into the next millennium with PreferredTrade.

Anything else is too slow!

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


**********
DISCLAIMER
**********

Please read our disclaimer at:
http://www.OptionInvestor.com/page/oin/aboutus/disclaimer.html


**************************************************************
ADVERTISING INFORMATION

For more information on advertising in OptionInvestor Newsletter,
or any Premier Investor Network newsletter please contact:

Contact Support
The Option Investor Newsletter                   Sunday 07-21-2002
Sunday                                                      4 of 5


************************Advertisement*************************
If you trade options online, then you need an online broker that:
offers true direct access to each option exchange offers stop and 
stop loss online option orders offers contingent option 
orders based on the price of the option or stock offers 
online spread order entry for net debit or credit 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
**************************************************************


*****************
CURRENT PUT PLAYS
*****************

GDW – Golden West $60.47 (-2.15 last week)

Company Summary:
Golden West Financial Corporation (Golden West) is a savings and
loan holding company, the principal business of which is the
operation of a savings bank business through its wholly owned
savings bank subsidiary, World Savings Bank, FSB (WSB). Golden
West also has two other operating subsidiaries, Atlas Advisers,
Inc. and Atlas Securities, Inc. These two companies were formed
to provide services to Atlas Assets, Inc., a registered open-end
management investment company sponsored by the Company. Atlas
Advisers is a registered investment adviser and the investment
manager of Atlas Assets' 14 portfolios (the Atlas Funds). Atlas
Securities is a registered broker-dealer and the sole distributor
of Atlas Fund shares. The principal business of the Company,
through WSB, is attracting funds from the investing public and
the capital markets and investing those funds principally in
loans secured by deeds of trust or mortgages on residential real
estate, and mortgage-backed securities.

Play Description:
Finding an island of strength in the current market is rapidly
becoming a fruitless search, and Friday's market action is a
perfect example with virtually every sector closing in the red.
In that sea of red, the Banking stocks stood out again as leaders
to the downside, as the Banking index shed 2.67% to close at its
lowest level since September 21st.  In light of that weakness, it
was rather interesting to note that shares of GDW didn't continue
to absolutely fall apart like they have for the past 2 weeks.
Support at the $59.50 level held and the stock rebounded from its
lows to close just over the $60 level.  But there was some
constructive (or destructive, in this case) done on the PnF chart.
GDW printed a fresh triple-bottom breakdown with its trade below
$60, and this will have the bears growling due to the new bearish
price target of $49, which just happens to be very close to the
September lows.  Resistance is building in the $61 area, with
even stronger resistance up at $62, and the 200-dma is sandwiched
in between at $61.43.  Look to initiate new positions on a failed
rally in this resistance area.  We are keeping our stop in place
at $62.50 this weekend.

BUY PUT AUG-60*GDW-TL OI=287 at $2.90 SL=1.50
BUY PUT AUG-55 GDW-TK OI=335 at $1.25 SL=0.50

Average Daily Volume = 565 K


---

VZ - Verizon Communications $32.50 -$1.55 (-2.80 for the week)

Company Summary:
Verizon Wireless is the nation's leading provider of wireless 
communications. The company has the largest nationwide wireless 
voice and data network and 30 million customers. Headquartered in 
Bedminster, NJ, Verizon Wireless is a joint venture of Verizon 
Communications and Vodafone (NYSE: VOD). (Source: company press 
release)

Play Description:
Verizon has continued its downtrend, begun at the end of May.  It 
had been in a narrowly defined descending channel, which it fell 
out of with its close below $34.  It has seen resistance from its 
10-dma and 21-dma the entire way down.  VZ traded down to $31.50, 
before rebounding to finish down $1.55 on the day.  

VZ has not seen this price level since May of 1997.  It has 
swooned along with the rest of the telecom sector, however it 
failed to follow the sector's small rebound today.  J.P. Morgan 
dialed down its expected earnings per share growth estimates for 
2003 for the Baby Bells (VZ, SBC, BLS), to 1 percent, versus 
current expectations of 4 percent. Morgan also predicted the Bells 
would need to reduce their workforce by an additional 4 percent 
beyond already announced reductions in order to protect the bottom 
line.  Verizon was the hardest hit of the three and shows little 
promise of a rebound. There has been heavier than normal volume 
during VZ's recent slide, not a good indication for the stock.  

The current vertical count on VZ's PnF chart is pointing to a 
target of $29.00, with no real support until then.  We're going to 
aim for the $30 area (probably $30.50) as our profit target. We 
are adjusting our stop loss down to $36.00.

BUY PUT AUG-35 VZ-TG OI= 2336 at $4.00 SL=2.00 
BUY PUT OCT-35 VZ-VG OI=15917 at $5.20 SL=3.00

Average Daily Volume = 6.6 million


---

LOW – Lowe's Companies, Inc. $36.03 -$1.82 (-4.15 last week)

Company Summary:
With 2001 sales of $22.1 billion, Lowe's Companies, Inc. is the 
world's second largest home improvement retailer. Headquartered in 
Wilkesboro, N.C., Lowe's is a Fortune 100 company and the 14th 
largest retailer in the United States. Lowe's has 110,000 and more 
than 800 stores in 43 states. (Source: company release)

Play Description:
Lowe's continues its downward swoon, along with the rest of the 
retail sector.  We have seen heavy volume during this slide, as 
consumer confidence and low retail sales have hurt this sector.  
The Retail Index slid past levels of support at 300 and 290, and 
has dropped another 10% this week to 266.  There was an attempt by 
the sector to right itself earlier in the week, but it turned out 
to be just a token effort that was unsustainable.  The recent 
decline in the U.S. Home Construction Index ($DJUSHB) and talk of 
a housing bubble also does not bode well for Lowe's, which thrives 
on home improvement.

Lowe's has exceeded its bearish vertical count on the point and 
figure chart and also broken through bullish support.  Lowe's 
appears to have potential support around $35.00, $32.50, and then 
again at $30.  We remain bearish on this stock, as other 
heavyweights in its sector Wal Mart and Home Depot also continue 
to slide south.  Yet new entries would probably work better on a 
break of support at $35.00 or a failed rally between $38 and $39.

BUY PUT AUG-40*LOW-TH OI=1628 at $5.00 SL=2.50
BUY PUT AUG-35 LOW-TG OI=1798 at $2.15 SL=1.00
BUY PUT OCT-40 LOW-VH OI=2895 at $6.10 SL=3.75

Average Daily Volume = 4.72 million


---

BLL - Ball Corporation $35.60 (-5.53 last week)

Company Summary:
Ball Corp. is a manufacturer of metal and plastic packaging,
primarily for beverages and foods, and a supplier of aerospace
and other technologies and services to commercial and
governmental customers.  Ball's principal business is the
manufacture and sale of rigid packaging products, primarily
for beverages and foods.  Polyethylene terephthalate packaging
is the company's newest product line.  The aerospace and
technologies segment includes civil space systems, defense
operations and commercial space operations.  The defense
operations business unit includes defense systems, systems
engineering services and advanced antenna and video systems, as
well as electro-optics and cryogenic systems and components.

Play Description:
Now that's the way to get a new put play started.  When we
initiated coverage on BLL on Thursday, we were hoping for one
more brief pop to give us an entry into the play.  But with the
broad market going into free-fall at the open and continuing to
deteriorate throughout the day, we had to settle for an entry
on the breakdown under support.  And what a breakdown it was.
Continuing to give back its gains from the rally off the
September lows, BLL gapped down and took out Monday's low soon
thereafter, triggering our lower entry point.  Even the mild
support near $3 failed to produce so much as a speed-bump on
the way down.  Referring to our commentary in the writeup on
Thursday, the PnF chart has a bearish target of $29, and the
stock is making rapid progress towards that goal.  We want to
see an oversold rebound early next week, possibly from the $35
area, to provide new entries on a failed rally under the $38
level.  As long as the Defense Industry index (DFI.X) continues
its downward slide, BLL should continue to please the bears.
Remember, the company is set to release earnings on Thursday
before the opening bell, so all positions should be closed by
the end of trading on Wednesday.  Lower stops to $38.50.

BUY PUT AUG-37 BLL-TU OI=489 at $3.60 SL=1.75
BUY PUT AUG-35*BLL-TG OI=770 at $2.20 SL=1.00
BUY PUT AUG-32 BLL-TZ OI=332 at $1.45 SL=0.75

Average Daily Volume = 533 K


---

INVN – InVision Technologies $25.21 (+0.83 last week)

Company Summary:
InVision Technologies is a provider of FAA-certified explosives
detection systems (EDSs) used at airports for screening checked
passenger baggage.  The company's EDS products are based on
advanced computed tomography (CT), which is the only technology
for explosives detection that has met the FAA certification
standards.  INVN was the first manufacturer and is one of only
two whose EDS products have been certified by the FAA for
screening baggage.  Through the end of 2001, the company had
shipped 18 EDS units for installation at United States airports
and 103 units for installation in airports outside of the United
States.

Play Description:
The fade the news crowd is definitely still alive and well,
judging by last week's price action in INVN.  The stock ran up
early in the week and then began selling off on Wednesday after
news broke that the company had received more than $100 million
in additional orders from the Department of Transportation.
Perhaps investors are starting to get worried about whether the
funding for all these orders and projects will come in on time
or get delayed like so much else tied to the Defense sector.
Whatever the cause, INVN gave us a great entry as it rolled over
near the $28.50 level and then proceeded to fall right to the
$25 support level at the close on Thursday.  Friday's action
was a bit curious, as the stock firmed and held above $25 all
day, actually posting a fractional gain while the rest of the
market went into free fall.  It is starting to look like the
bears will have to get another running start to break below this
support level, so we want to be on the lookout for another failed
rally to allow us into new positions.  A rollover below $27.50
can be used to enter new positions, but remember that time is
short on this play.  The company is set to release earnings
after the closing bell on Tuesday, so we'll be dropping the
play by then.  Use a drop below support as an opportunity to
harvest gains, targeting major support in the $22-23 area.

BUY PUT AUG-25*FQQ-TE OI=529 at $2.75 SL=1.25
BUY PUT AUG-22 FQQ-TX OI=220 at $1.60 SL=0.75

Average Daily Volume = 1.67 mln


---

SBC – SBC Communications $26.68 (-2.96 last week)

Company Summary:
With 61 million phone lines in 13 states, SBC is the #2 local
phone outfit in the United States.  It's not just a local
operation either, as the company has stakes in Telecom
operations in 23 other countries around the world.  The
services and products that SBC offers vary by market, and
include local exchange services, wireless communications, long
distance services, Internet services, cable and wireless
television services, security monitoring, telecommunications
equipment, messaging, paging, and directory advertising and
publishing.

Play Description:
Bankruptcy is looming large in the windscreen for Worldcom, and
as we mentioned when we initiated coverage on SBC, the company may
be in position to 'win' the bidding if Worldcom goes on the
auction block.  That win might turn out to be a booby prize given
the huge debt-related problems that would go with the acquisition.
Although it took its sweet time getting moving, shares of SBC
finally succumbed to the selling pressure in the broad market over
the past 2 days.  Whether due to acquisition-related fears or
downright disgust with the deteriorating prospects for the
Telecom industry, it is clear that the bears are in control here.
This point was underscored by Morgan Stanley's estimate cuts for
the RBOCs on Wednesday, where they cited their expectation for
more pressure on top-line revenues and profit margins.  Looking
at the intraday action on Friday though, things weren't as grim
for SBC as for the rest of the market.  After gapping down to
$26.25, it clawed its way back to just above the $27 resistance
level before selling off again in the final 30 minutes of the
day.  The bulls are trying to get a decent bounce going, and if
successful, we could get another attractive entry point on a
failed rally near the $28 level.  Given the stock's resilience
on Friday, we wouldn't advocate shorting into the hole here, but
instead would look at a drop near the $25 level as an opportunity
to harvest gains.  We are lowering our stop to $28 this weekend
and will be dropping the play on Monday, ahead of the company's
earnings report Tuesday morning.

BUY PUT AUG-30*SBC-TF OI=2364 at $3.90 SL=2.50
BUY PUT AUG-25 SBC-TE OI=2436 at $1.05 SL=0.50

Average Daily Volume = 7.92 mln



************************Advertisement*************************
”If you haven’t traded options online – you haven’t really traded 
options,” claims author Larry Spears in his new compact guide book:

“7 Steps to Success – Trading Options Online”.

Order today and save 25% (only $15) by clicking on PreferredTrade 
and clicking on the link to the book on its home page.

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


*****
LEAPS
*****

Where's The Bottom?
By Mark Phillips
mphillips@OptionInvestor.com

Now that the DOW has joined the S&P 500 and NASDAQ in having
broken its September lows, that seems to be the question on
everyone's mind.  While the bulk of the carnage seen on Friday
was focused on the DOW and S&P, no area of the market was spared
from the selling frenzy.  Even though it managed to hold
above last week's lows, even the NASDAQ-100 suffered nearly a 3%
loss and ended only 20 points above its July 11th intraday low.
The strongest Technology sector throughout the day was the
Semiconductors (SOX.X), which spent most of the day with a small
gain.  But the pressure of the market-wide selloff was more than
even the Chip bulls could stand and the (not-so) mighty SOX fell
underwater in the final hour.

While I wouldn't go so far as to call a bottom here, this kind
of wholesale abandonment of stocks, both the good and the bad, is
part of the necessary cleansing process needed to put in the
next tradable bottom.  The next major support for the DOW looks
to be in the 7500-7600 area, with the S&P 500 having to look down
near the 800 level to find any meaningful historical support.
Failing to hold that level brings in the possibility that we'll
need to revisit the site of the 1997 lows near 740 before the
bulls will be willing to come out and play again.

I even found the action of the VIX to be rather disconcerting, as
it only rose to 43.36.  While this is the highest close for the
VIX since September 21st, what bothered me is that its closing
level was lower than the intraday high on Monday.  It is worth
noting that the S&P 500 finished at 847, nearly 30 points below
Monday's intraday low.  Given this pattern and the location of
the next levels of support, I think the BEST scenario for next
week is a continuation of the broad market decline down to the
support levels I have listed above along with the VIX pushing up
near the 50 level.  Judging by the lack of any significant
short-covering at the end of the day on Friday, that follow
through could occur as early as Monday morning, after individual
investors make some hard decisions this weekend.

While very near-term this is a bearish, the picture I'm trying
to paint is that I think we are very near serious capitulation
(I know the word is terribly over-used), with just the first
hints of true panic starting to appear.  That should set the
stage for the next bear market rally to allow us to profit from
the long side.  Remember that?  I know it has been awhile, but
help me try to visualize it.

The problem I have this weekend, is not knowing from what levels
we are likely to see a steady rebound.  I've listed some index
levels above, but what about individual equities?  By far the
strongest section of the market right now appears to be the
Semiconductors.  But we have one in the Portfolio (BRCM) and one
in the Watch List (INTC).  I don't want to weight too much of
our attention in that area.  By and large, I'm having a hard
time picking long candidates here, as I don't know where they
will start falling.  But I'm hesitant to pick new shorts, as we
are (in my opinion) so close to the bottom.  My advice for the
week ahead would be to stay on the sidelines and let this
volatility shake out.  If you must do some bottom fishing, then
I think the plays we have in our list should serve that purpose
well.

So let's do a brief review of the listed plays and see what we
expect from here:

Portfolio:

MSFT - While last week's action wasn't pretty, neither was it
horrible.  MSFT managed to not spook investors with their earnings
report, but there wasn't anything that could be called a bullish
catalyst either.  That lack of buying incentive had the stock
falling again at the close on Friday, inching below the $50 level.
It looks like we are going to get another entry opportunity for
those that missed it before.  The key is going to be whether the
bulls step up to support the stock before it violates the $48
support level.  Remember this is the site of our stop, and if it
is violated on a closing basis, we'll be gone.

QQQ - Despite the ugly numbers on the surface, the NASDAQ-100
actually held up very well last week.  Sure it closed a mere 20
points above its recent low, but it did manage to hold above that
low.  Helping to prop this index up is the internal strengthening
that is evident on the Point and Figure Bullish Percent chart,
which shows the index to still be in bull confirmed.  The QQQ
still looks attractive for new entries in the $23.50-24.00 area as
this bottoming process continues.  But keep those stops in place,
just in case!

BRCM - Stocks like BRCM are precisely the sort of internal
strengthening I'm talking about in the NASDAQ, as the stock has
continued to perform better than the NASDAQ or the SOX.  BRCM did
end the week with a fractional loss, but is still well above where
we took our entry just over a week ago.  A dip near $18.50-19.00
looks good for new entries, so long as the SOX doesn't take out
its September lows.

Watch List:

BA - The action in BA last week was wild and wooly, just like in
the rest of the market.  Trying to pick an entry here would be
foolhardy in my opinion, and that is just one reason why our
entry target is down near the September lows.  Market pressures
are fierce to the downside, while the company continues to turn
out solid earnings reports.  Unless we see some more constructive
price action that can create a fresh Buy signal, I'll continue to
defer to the PnF chart for my entry target into this play.

WMT - I have been cautious on this one for several weeks now, and
now we know the reason why.  While there hasn't been any
company-specific bad news, the Consumer Confidence numbers along
with some scattered bearish same store sales reports slammed the
entire Retail sector, including WMT, the king of the discount
retailers.  While I'm not quite willing to pull the plug on this
play, neither am I able to discern an intelligent level to take
action.  So WMT remains on hold until we can see the stock start
to form a new base.

GE - New 3-year lows are not what we look for in solid LEAPS
candidates, but I continue to believe that we are very near a
solid bottom for the stock.  Aggressive traders could look to
catch a bounce from the vicinity of the $24-25 level (the site of
the 1998 lows), but only if accompanied by a broad-based market
rebound.  For our official entry strategy, we're going to wait
for GE to push through the $28.50 resistance before taking a new
position.

INTC - Without a doubt, the action in INTC last week was truly
impressive, especially in light of an earnings report that failed
to thrill anyone.  Nevertheless, the stock managed to continue
posting higher lows over the past 2 weeks.  My expectation is that
it will come down to confirm support in the vicinity of $17-18
before being ready to show any real strength.

Like many of you, I am frustrated that the list of plays is so
short right now, but I expect to see that change substantially
in the very near future.  By its very nature, the LEAPS column
attempts to capture longer-term moves in individual stocks, and
we appear to be very near another inflection point.  I am trying
very hard to make sure that we don't pick the wrong direction on
the wrong play just before that inflection point occurs.  My
expectation is that the bulls will soon come out to frolic, but I
want to wait for some evidence before once again sticking my foot
in my mouth.  As we get closer and closer to an expected washout
event, it becomes even more prudent to wait on the sidelines in
cash or play with very small position sizes.  That will leave us
ready to wade in and pick up the pieces after the dust begins to
settle.

Whatever you do, be very careful out there!


Mark


LEAPS Portfolio

Current Open Plays

SYMBOL OPENED     LEAPS    SYMBOL  ENTRY   CURRENT  CHANGE  STOP

Calls:
MSFT   05/13/02  '03 $ 55  MSQ-AK  $ 5.90  $ 6.00  + 1.69%  $48
                 '04 $ 55  LMF-AK  $10.20  $11.20  + 9.80%  $48
QQQ    06/26/02  '03 $ 28  OZC-AB  $ 2.45  $ 2.05  -16.33%  $22.50
                 '04 $ 28  LRI-AJ  $ 4.50  $ 4.10  - 8.89%  $22.50
BRCM   07/10/02  '03 $ 20  RCQ-AD  $ 3.10  $ 5.30  +70.97%  $16
                 '04 $ 20  LGJ-AD  $ 6.00  $ 8.50  +29.41%  $16


Puts:
None
GD     07/17/02  '03 $ 95  GD -MS  $11.70  $19.20  +64.10%  $89.50
                 '04 $ 90  KJD-MR  $13.50  $19.60  +45.19%  $89.50


LEAPS Watchlist

Current Possibles

SYMBOL  SINCE    TARGET PRICE  TARGETED LEAP  SYMBOL

CALLS:
WMT    03/31/02    HOLD        JAN-2003 $ 55  VWT-AK
                            CC JAN-2003 $ 50  VWT-AJ
                               JAN-2004 $ 55  LWT-AK
                            CC JAN-2004 $ 50  LWT-AJ
INTC   06/16/02  $17-18        JAN-2003 $ 20  NQ -AD
                            CC JAN-2003 $ 15  NQ -AC
                               JAN-2004 $ 20  LNL-AD
                            CC JAN-2004 $ 15  LNL-AC
BA     06/30/02  $32-33        JAN-2003 $ 35  BA -AG
                            CC JAN-2003 $ 30  BA -AF
                               JAN-2004 $ 35  LBO-AG
                            CC JAN-2004 $ 30  LBO-AF
                               JAN-2005 $ 40  ZBO-AH
                            CC JAN-2005 $ 30  ZBO-AF
GE     07/14/02  $28           JAN-2003 $ 30  VGE-AF
                            CC JAN-2003 $ 27  VGE-AY
                               JAN-2004 $ 30  LGR-AF
                            CC JAN-2004 $ 25  LGR-AE


PUTS:
None


New Portfolio Plays

GD - General Dynamics $90.16  **Put Play**

In what may turn out to be the shortest-lived LEAPS play in the
history of this column, we were triggered for entry into the play
on Wednesday.  The stock popped up at the open in initial response
to the company's earnings report, but the bloom came off the rose
extremely quickly.  After kissing our $100 entry target at the
open, selling volume drove the stock down by more than $10 at the
closing bell.  And it got worse from there, with the stock
continuing lower right up to the closing bell on Friday, shedding
another $10 in the process.  So what triggered such a negative
investor response?  Well, it wasn't what you would expect.
Analysts expressed growth concerns in the wake of GD's earnings
report, particularly focused on the Gulfstream executive jet
division.  Hmmmm, let's see.  Corporate perks are under more and
more scrutiny and that leads to less sales of one of the most
expensive perks, the executive jet.  It sure makes sense to me.
And with so many companies going the way of the Dodo, I'm guessing
that there could be an ample supply of corporate jets available
in the used market.  Normally, I wouldn't be wild about entering
a new play on the day of such a large move, but since it didn't
occur as a gap, it was eminently playable by those that were
paying attention.  At worst, when the stock broke back under the
$96.50 level, that would have made for a solid entry.  Alas, due
to the way we track things here, we have to take our entry as of
Wednesday's close, near the $90 level.  Now that the stock has
fallen $20 in 3 days, I wouldn't advocate new positions unless we
get a failed rally at resistance up in the $86-87 area.  As far
as position management is concerned, it really depends where you
got into the play.  For those that got in early, I would advocate
a stop set near $85 to preserve the bulk of those gains.  But for
the position we track in the Portfolio, I want to give it a bit
more time to work.  So, we'll set our official stop at $89.50,
just below the point of entry.  Take note of the fact that the
current bearish price target from the PnF chart is $72.  If that
level is hit next week, then we'll be closing the position for a
tidy gain.  One other point is that due to the rapidity of the
drop in price, we are only going to track the '03 and '04 LEAPS.

BUY LEAP JAN-2003 $ 95 GD -MS $11.70
BUY LEAP JAN-2004 $ 90 KJD-MR $13.50


New Watchlist Plays

None

Drops

BBH $71.29 Sometimes you can get everything right, except for
the execution.  We were right on our expectations that the
Biotechnology sector would continue to lead on the way down, and
did it ever.  Unfortunately, I must have misread my charts,
because each time I modified the entry strategy, we missed the
entry again as the downhill cascade continued.  While I'm not
ready to look bullish on the sector, I do find it interesting
that the weekly Stochastics is now flashing bullish divergence.
And then we have the internal strengthening in the NASDAQ-100,
along with the fact that the BBH held well above its recent lows
last week, doing even better than the overall NASDAQ or the SOX.
To me, that is a warning to remove the play from bearish
consideration, before we get caught entering an ill-fated play.


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

When You Can’t Say “No”
By Mike Parnos, Investing With Attitude

Some people are obsessed, which is hardly breaking news.  
Controlling one’s obsessions is easier said than done.  But they 
say that, if you can admit the problem, it’s half the battle.

People say “no” to drugs.  They may say “no” to alcohol, but they 
can’t bring themselves to say “no” to owning stock in a bear 
market – a potentially fatal character flaw that may result in the 
untimely death of your portfolio.  It’s a disease that not even a 
12-step program will help because you’ll be broke before you get 
to step #6.  

It’s the Couch Potato Trading Institute to the rescue -- where the 
path of least resistance and the path to profits are one in the 
same. We’re dedicating the Strategy Du Jour to all those lost 
souls who have no control and simply MUST own stocks in this 
market environment.  

In one sense, I applaud a utopian “glass is one-third full” 
optimistic approach to managing money.  Optimism is a good 
quality.  But it has absolutely nothing to do with reality.  Dear 
optimist traders:  Be sure to let me know what it's like to stand 
in line for government cheese.

In this bear market, it's more likely that you’ll be the first 
woman member of the Augusta National Golf Club than your stocks 
will return to the levels of 1999 and 2000.

Maybe I can help, but to do so I'll have to put you on a short 
leash.  At the end of that leash is a "collar."  In essence, what 
we're going to do is to put a collar on your stocks that won't let 
them stray too far.

For example:  You own 1,000 shares of widely held Micron 
Technology (MU).  Maybe you bought it two weeks ago or two years 
ago.  It doesn’t really matter.  Early this week MU was trading at 
$23.00 per share.  The chart indicates that it may have bottomed 
and is slowly working its way back up.  Can we be sure?  Of course 
not -- unless you’re hearing little voices or had a recent 
consultation with Miss Cleo.  

The fact is, we haven't had our capitulation yet.  Regardless what 
images come to mind when you hear the word "capitulation," the one 
thing you don't want to do is to experience it without the proper 
protection.  That's what the "collar" is for.

If you sold the MU August $25 call, you would take in $1.50 
($1,500 for 10 contracts).  Now, where is this $1,500 going to do 
you the most good?  It's a matter of priorities.  You could: 

1)  Fly to Vegas, catch a few shows, wine and dine at the $5.95 
buffet and gamble away what's left.
2)	Take your Toyota to Earl Sheib for some TLC, a little 
	bumping and grinding and a new paint job.  Your car will love 
	you for it.
3)	Treat your wife to a full day of pampering at the local Day 
Spa.  Your wife will love you for it, but it will be forgotten 
in two weeks, or
4)  Buy some insurance on your $23,000 investment.

The astute Couch Potato Institute graduate will resist the 
temptations and forgo choices 1-3. He will use a portion of the 
$1,500 to buy 10 of the August $20 puts for $1.05 ($1,050).  This 
will, in effect, protect you if Micron reverses direction and go 
back down.  Keep in mind that Micron is only an earnings warning 
away from $15.   The $20 put will protect you on any transgression 
below $20 through August option expiration.  Plus, if you haven't 
noticed, you will still have $450 ($1,500 less $1,050 = $450) for 
pizza, chips, beer and . . . maybe a little bumping and grinding 
for yourself -- or even a new bathrobe.

The “collar” limits what could be a catastrophic loss to a 
tolerable two points and allows for Micron to appreciate by $2.00 
before you're at risk of losing the stock through assignment.  You 
can repeat the process month after month until your stock gets 
called away – which is a good thing! It means you made money, 
which, if I’m not mistaken, is the object of this exercise.
Some people do, however, become attached to their stocks.  They 
think that if they lost money on a particular stock, they have to 
make it up in the same stock.  When you buy a stock, where does it 
say “till death do you part?”  Remember, it’s only a stock.  Don’t 
become emotionally involved.  If it goes, it goes. Add up your 
profits, smile and get on with your life.  

There are no monogamy laws or divorce penalties in the stock 
market.  You can play the field.  There are thousands of other 
stocks out there.  Just make sure you use “protection.”   Sound 
vaguely familiar?

By the same token, if you’re bearish, you can construct the same 
scenario by shorting a stock, selling an out-of-the-money put and 
buying an out-of-the-money call to protect your short stock 
position.

In most cases, you’re allowed to sell covered calls in your IRA.  
A few brokerage firms will even allow you to establish “collar” 
positions by purchasing the protective put in your IRA.     

In summation, you can have your cake and eat it too.  The “collar” 
enables you to own a stock, have room for profit, possibly pocket 
a few dollars, and be protected on the downside.

You’ll find that having your cake and eating it beats the hell out 
of the prospects of digesting a grilled government cheese sandwich.

We’re not going to cure the disease with the “collar,” but we can 
bandage the wound and stop the bleeding – at least temporarily.  
However, don’t be surprised if, before long, the obsessive-
compulsive stock-buyer is back out there still trying to catch 
those falling knives with bare hands.

Go figure.


************************Advertisement*************************
Tired of waiting on trades to execute?
Does your broker offer Stop Losses on Options?

Trade instantly with Stop Losses at PreferredTrade Inc.
Stop Losses based on the option price or the stock price.
Move your trading into the next millennium with PreferredTrade.

Anything else is too slow!

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


**********
DISCLAIMER
**********

Please read our disclaimer at:
http://www.OptionInvestor.com/page/oin/aboutus/disclaimer.html


**************************************************************
ADVERTISING INFORMATION

For more information on advertising in OptionInvestor Newsletter,
or any Premier Investor Network newsletter please contact:

Contact Support
The Option Investor Newsletter                   Sunday 07-21-2002
Sunday                                                      5 of 5


************************Advertisement*************************
If you trade options online, then you need an online broker that:
offers true direct access to each option exchange offers stop and 
stop loss online option orders offers contingent option 
orders based on the price of the option or stock offers 
online spread order entry for net debit or credit 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
**************************************************************


*************
COVERED CALLS
*************

Covered-Call Basics: Trading Terms & Definitions
By Mark Wnetrzak

Last week's mention of the phrase "Total Return Concept" prompted
a new reader to ask about its meaning.  This conservative approach
to the covered-write strategy was originally created by option
guru Larry McMillan.

The ideal investment offers limited risk and a good probability
of making a profit.  Our goal in this section of the newsletter is
to provide plays that achieve acceptable returns while affording
an above-average amount of downside protection.  The technique we
use to achieve this outlook is the "in-the-money" covered call.

All covered-calls involve selling a call against stock that is
owned.  The buyer of the call option has right to "call" the stock
at a specific price because he pays the writer of the option a
premium for agreeing to provide the underlying shares, when and
if the option is exercised.  Because the call writer delivers the
shares from his or her portfolio holdings, he or she is "covered."
This means there is no risk to the call writer of being forced to
buy (and subsequently sell) shares of a stock at a premium, after
it has experienced a substantial increase in value.

While the covered-call writer has no risk of losing money if the
stock increases in value, there is a risk of missing out on large
gains.  The reason is obvious: if a stock moves above the strike
price of the sold options and remains there until the expiration
date, the calls will be exercised and the covered-call writer will
be forced to deliver the underlying shares.  The difference between
the value of the stock at expiration and the sold option's strike
price is the amount of upside potential lost in the strategy.  At
the same time, when stock declines, the covered writer will offset
part of his loss by the amount of the premium received in the sale
of the options.

The most common approaches to the strategy are the "in-the-money"
(ITM) covered-call and the "out-of-the-money" (OTM) covered-call.
Many investors prefer to strive for higher potential returns with
an aggressive outlook, writing out-of-the-money calls on stocks in
their portfolios.  These positions offer greater rewards but also
have less downside protection.  The maximum potential profit of an
OTM position, while generally greater than that of an ITM position,
will always require an increase in price by the underlying stock.
Thus, by using an OTM option, the success of the overall position
depends more on the movement of the stock price and less on the
benefits of writing the call.  In addition, the premium generated
from the sale of the call is also much smaller, so the combined
position will be more susceptible to loss if the stock declines.

Covered-writes using ITM options are more defensive, offering less
risk with a smaller reward potential.  This conservative approach
appeals to those investors who are attempting to earn a relatively
consistent return while striving for preservation of capital.  In
spite of having a smaller profit potential, the ITM approach can
be very attractive on a percentage return basis, especially when
the stock is held in a margin account.  The cost of the underlying
issue is substantially reduced and even if the stock declines, the
position can still return a profit.  Traders who use the strategy
in this manner consider both downside protection and potential
profit.  The combined position (both stock and options) is viewed
as a single entity and the investor is not overly concerned with
long-term ownership of the underlying issue.  This "total return
concept" represents the true focus of most successful covered call
writers.

Regardless of the approach you favor, a comparison should always
be made with regard to the various option strikes and premiums.
Investors who plan to sell OTM calls should concentrate on the
"return not called."  This is the return on investment that one
would achieve even if the stock price were unchanged when the sold
option expires.  One can compare potential plays more fairly using
this method, since no assumption is made about price appreciation
in the underlying issue.  In our conservative portfolio, we search
for positions that offer a minimum return on investment of 3-5%
per month with downside protection of at least 10% of the current
stock price.  Any position constructed using these guidelines will
have comparatively low risk, regardless of the volatility of the
underlying stock, since the levels of protection are substantial
and there is still the expectation of a reasonable return.

Since the primary objective of covered-call writing is increased
income though stock ownership, the amount of downside protection
and the return on investment are both important considerations in
determining which approach to use.  Considering the recent market
volatility, any strategy that offers moderate profit potential and
relatively low risk is appealing.  While a minimally acceptable
return is a matter of personal preference, the advantages of the
"Total Return Concept" can be very attractive to many investors.

Trade Wisely!



SUMMARY OF PREVIOUS CANDIDATES
*****
Note:  Margin not used in calculations.

Stock  Price  Last   Call  Strike Price   Gain   Potential
Symbol Picked Price  Month Sold   Picked  /Loss  Mon. Yield

EXTR   10.01  10.29   JUL  10.00  0.85  *$  0.84  19.9%
EXTR   10.09  10.29   JUL  10.00  1.00  *$  0.91  14.5%
EMC     7.59   8.10   JUL   7.50  0.50  *$  0.41  12.6%
RIMM   13.35  12.90   JUL  10.00  3.80  *$  0.45  10.2%
MCDT    8.90   9.83   JUL   7.50  1.75  *$  0.35   7.1%
IVGN   31.30  30.88   JUL  27.50  4.60  *$  0.80   6.5%
HPLA   13.95  14.10   JUL  12.50  2.40  *$  0.95   6.0%
MCDT    8.99   9.83   JUL   7.50  1.90  *$  0.41   4.2%
REV     4.96   4.65   JUL   5.00  0.45   $  0.14   3.4%
COB     5.35   4.65   JUL   5.00  0.70   $  0.00   0.0%
CANI   11.26   8.76   JUL  10.00  1.85   $ -0.65   0.0%

EXTR   10.67  10.29   AUG  10.00  1.70  *$  1.03  10.0%
AMLN   10.00  10.50   AUG  10.00  0.90  *$  0.90   8.6%
NPSP   17.11  17.66   AUG  12.50  5.60  *$  0.99   7.5%
SNDK   14.40  15.08   AUG  12.50  2.85  *$  0.95   7.1%
BRCD   18.50  18.56   AUG  15.00  4.40  *$  0.90   5.5%
BRCM   20.39  19.86   AUG  17.50  3.90  *$  1.01   5.3%
DRIV    9.19   8.64   AUG   7.50  2.25  *$  0.56   5.0%
PCS     6.02   4.86   AUG   5.00  1.40   $  0.24   4.5%

*$ = Stock price is above the sold striking price.

Comments:

The sky is falling!  The sky is falling!  The bulls are running
off the cliffs and all is bleak!...except for the bears.  Will
it ever end?  Yes!  The key is to survive.  We definitely culled
several more issues that swooned in this horrid environment
though McAfee.com (NASDAQ:MCAF) did manage to finish just above
break-even.  Carreker (NASDAQ:CANI) waited until Thursday to 
violate its 150-dma, though it did offer a less painful exit on
Friday.  As for August positions, Zixit (NASDAQ:ZIXI) did break
below the June low and was closed though Friday's action is 
encouraging for those who were using the February low as an
exit signal.  Sprint PCS (NYSE:PCS), as expected, reported less
than stellar earnings and will be watched closely next week.

Positions Closed: 

PETsMART (NASDAQ:PETM), Mirant (NYSE:MIR), Manhattan Associates 
(NASDAQ:MANH), Impax Laboratories (NASDAQ:IPXL), Quest Software
(NASDAQ:QSFT), McAfee.com (NASDAQ:MCAF), Lone Star Steakhouse 
(NASDAQ:STAR), New Century (NASDAQ:NCEN), Arkansas Best (NASDAQ:
ABFS), J.B. Hunt (NASDAQ:JBHT), J.D. Edwards (NASDAQ:JDEC),  
Friedman, Billings, Ramsey (NYSE:FBR), and Zixit (NASDAQ:ZIXI).



NEW CANDIDATES
*********

Sequenced by Company
*****
Stock  Last  Call Strike  Option  Last Open  Cost   Days  Target 
Symbol Price Mon. Price   Symbol  Bid  Int.  Basis  Exp.  Yield

CREE   13.98  AUG 12.50   CVO HV  2.30 3166  11.68   28    7.6%
IVGN   30.88  AUG 25.00   IUV HE  6.90 0     23.98   28    4.6%
JNPR    8.90  AUG  7.50   JUX HU  1.75 3565   7.15   28    5.3%
LVLT    5.75  AUG  5.00   HGY HA  1.20 2197   4.55   28   10.7%
SBL     8.58  AUG  7.50   SBL HU  1.50 915    7.08   28    6.4%
TRLY    6.31  AUG  5.00   TJR HA  1.60 32     4.71   28    6.7%
WEBX   13.88  AUG 12.50   UWB HV  2.20 60    11.68   28    7.6%

Sequenced by Target Yield (monthly basis)
*****
Stock  Last  Call Strike  Option  Last Open  Cost   Days  Target 
Symbol Price Mon. Price   Symbol  Bid  Int.  Basis  Exp.  Yield

LVLT    5.75  AUG  5.00   HGY HA  1.20 2197   4.55   28   10.7%
CREE   13.98  AUG 12.50   CVO HV  2.30 3166  11.68   28    7.6%
WEBX   13.88  AUG 12.50   UWB HV  2.20 60    11.68   28    7.6%
TRLY    6.31  AUG  5.00   TJR HA  1.60 32     4.71   28    6.7%
SBL     8.58  AUG  7.50   SBL HU  1.50 915    7.08   28    6.4%
JNPR    8.90  AUG  7.50   JUX HU  1.75 3565   7.15   28    5.3%
IVGN   30.88  AUG 25.00   IUV HE  6.90 0     23.98   28    4.6%


Company Descriptions

LB-Last Bid price, OI-Open Interest, CB-Cost Basis or break-even 
point, DE-Days to Expiry, TY-Target Yield (monthly basis).

*****
CREE - Cree  $13.98  *** Bracing For A Rally! ***

Cree (NASDAQ:CREE) develops and manufactures compound semiconductor
materials and electronic devices made from commercialize silicon 
carbide (SiC) and gallium nitride (GaN).  The company operates its
business in two segments: the Cree segment, which consists of its
SiC based products; and the UltraRF segment, which consists of 
radio frequency transistors and amplifiers on a silicon platform. 
The company's customers include Siemens AG, Sumitomo Corporation 
and Spectrian.  In early June, Cree revised its revenue outlook
upward, looking for an 8-11% sequential increase as apposed to a
5% increase.  The company also recently announced a couple of 
contracts with the Office of Naval Research (ONR) worth $14.4 
million and $26.5 million.  The stock has been forging a Stage I
base for six months and has recently moved back above its 50-dma.
Traders can speculate on the near-term performance of the issue
with this conservative position.

AUG 12.50 CVO HV LB=2.30 OI=3166 CB=11.68 DE=28 TY=7.6%


*****
IVGN - Invitrogen  $30.88  *** Positive Guidance! ***

Invitrogen (NASDAQ:IVGN) develops, manufactures and markets more
than 10,000 products for the life sciences markets.  The company's
products are principally research tools in reagent and kit form,
biochemicals, sera, media, and other products and services, which
Invitrogen sells to corporate, academic and government entities. 
The company focuses its business on two principal segments, Cell
Culture Products and Molecular Biology Products.  Invitrogen 
rallied after the company reaffirmed its earnings outlook for the
second quarter in line with analyst expectations.  The company 
said it expects to report second-quarter results at or above the 
upper end of its range, which was $160 million to $163 million in 
revenue and $0.44 to $0.46 per share, before the cost related to
the closing of a plant and other merger-related charges.  Another
chance at a conservative entry point for those investors who have
a bullish, long-term outlook for the company.

AUG 25.00 IUV HE LB=6.90 OI=0 CB=23.98 DE=28 TY=4.6%


*****
JNPR - Juniper Networks  $8.90  *** On The Mend ***

Juniper Networks (NASDAQ:JNPR) is a provider of Internet infra-
structure solutions that enable Internet service providers and
other telecommunications service providers to meet the demands
resulting from the growth of the Internet.  Juniper's Internet 
routers are designed and purpose-built for service provider 
networks and offer customers performance, scalability, interoper-
ability and flexibility, as well as reduced complexity and cost 
compared to legacy alternatives.  Juniper's Internet software, 
called JUNOS, is designed to meet the Internet protocol (IP) 
network routing, operations and control requirements of service
providers and is an integral embedded component of its product
family system architecture.  Juniper continued to rally this 
week after the company beat expectations last Thursday.  The
company posted a 2nd-quarter profit, excluding one-time items,
of $421,000 on revenues of $117 million.  We simply favor the
bullish move through the 50-dma and this position provides a
relatively low risk cost basis in the issue.

AUG 7.50 JUX HU LB=1.75 OI=3565 CB=7.15 DE=28 TY=5.3%


*****
LVLT - Level 3 Communications  $5.75  *** Cheap Speculation ***

Level 3 Communications (NASDAQ:LVLT) and its subsidiaries engage
in the communications, information services and coal mining 
businesses through ownership of operating subsidiaries and 
substantial equity positions in public companies.  The company 
is a facilities-based provider of a broad range of integrated 
communications services.  Level 3 has created, generally by
constructing its own assets, but also through a combination of
purchasing and leasing of facilities, the Level 3 Network, an 
advanced, international, facilities-based communications network.
The company has designed the Level 3 Network to provide communi-
cations services that employ and leverage rapidly improving 
underlying optical and Internet Protocol technologies.  Level 3
rallied strongly two weeks ago when it was reported that Warren
Buffett and two other investors agree to invest a total of $500 
million in the company to help it fund acquisitions.  The rally
continued this week and on Thursday, Level 3 posted a smaller-
than-expected 2nd-quarter loss.  The company did warn that it
saw mixed signals for the future and their CEO has denied that
he received stock in IPOs in exchange for pushing investment 
banking business to brokers.  We simply favor the technical 
support area near our cost basis and the bullish break-out
above the May high.

AUG 5.00 HGY HA LB=1.20 OI=2197 CB=4.55 DE=28 TY=10.7%


*****
SBL - Symbol Technologies  $8.58  *** Bottom-Fishing ***

Symbol Technologies (NYSE:SBL) develops, manufactures, sells and
services scanner-integrated mobile and wireless information 
manage-ment systems that consist of mobile computing devices, 
wireless local area networks (WLAN), bar code reading devices,
network appliance devices, peripheral devices, software and 
programming tools.  The company's systems are designed to provide 
solutions to customer-specific needs in information transactions.  They 
are used in a variety of applications, from collecting information 
at remote locations and transmitting information between these
locations and the user's central data processing facility, to
facilitating e-commerce transactions by accessing and collecting
price and product information at the point of activity for storing
or placing orders via the Internet.  Several Symbol devices also
connect wirelessly to WANs.  Though Symbol's revenue dropped, the
company reported Thursday that 2nd-quarter earnings, before items,
rose slightly.  Symbol Technology also maintained their forecast
for 2002 earnings of $0.20-$0.25 a share, before non-recurring
charges, on $1.3 billion of revenue.  This position offers
speculators a favorable entry point on an issue that recently
rallied strongly on heavy volume back above its 50-dma.

AUG 7.50 SBL HU LB=1.50 OI=915 CB=7.08 DE=28 TY=6.4%


*****
TRLY - Terra Networks  $6.31 *** Stage I Speculation ***

Terra (NASDAQ:TRLY) is a global Internet network operating in 43
countries in 20 languages, reaching 109 million unique monthly
visitors worldwide.  Created by the combination of Terra Networks
and Lycos in October 2000, Terra Lycos has operations in the U.S.,
Canada, Europe, Asia and Latin America.  The Terra Lycos network
of sites includes Lycos.com, Terra.com, AnimationExpress.com,
Angelfire.com, ATuHora.com, Gamesville.com, HotBot.com, html-
GEAR.com, Invertia.com, Lycos Zone, Matchmaker.com, Quote.com, 
RagingBull.com, Rumbo.com, Sonique, Tripod.com, Web monkey.com, 
Whowhere.com and Wired News (Wired.com).  Terra Lycos rallied
on heavy volume at the end of June, when the company agreed to 
sell its stake in Lycos Korea to South Korea's top mobile carrier,
SK Telecom, for $10 million.  The rally has continued into July 
with the stock moving well above its 50-dma and the June high.
The long-term chart (2-year) of Terra depicts technical support
around $4.50 on a stock forging a Stage I base.  Traders should
target-shoot a lower "net debit" in the position initially, to
increase the potential return and allow for some consolidation in
the underlying issue.

AUG 5.00 TJR HA LB=1.60 OI=32 CB=4.71 DE=28 TY=6.7%


*****
WEBX - WebEx Communications  $13.88  *** Earnings Rally? ***

WebEx (NASDAQ:WEBX) develops and markets services that allow 
end-users to conduct meetings and share software applications, 
documents, presentations and other content on the Internet 
using a standard Web browser.  Integrated telephony and Web-
based audio and video services are also available using standard
devices, such as telephones, computer Web-cameras and microphones.
The company has designed and developed its technology architecture
to satisfy the interactive communications requirements of a broad
range of customers.  The company's architecture consists of three
tiers: WebEx Interactive Services, WebEx Interactive Platform and
WebEx Interactive Network.  WebEx reported on Thursday a record
2nd-quarter profit, which was much higher than expected as sales
almost doubled.  Net income was $3.3 million, or 8 cents a share,
compared with a loss of $9.3 million, or 26 cents a share, for the
same period last year.  WebEx said its revenue rose 80% to $33.2
million as it signed up new corporate customers.  Investors were
pleased as the stock rallied almost two dollars on a day when all
the major averages were in a free-fall.  The stock has forged a 
6-month base and we favor the technical support near the cost 
basis in this position.  

AUG 12.50 UWB HV LB=2.20 OI=60 CB=11.68 DE=28 TY=7.6%


*****

*****************
SUPPLEMENTAL COVERED CALL CANDIDATES
*****************

The following group of issues is a list of additional 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
and positions are suitable for your experience level, risk-reward
tolerance and portfolio outlook.  They will not be included in
the weekly portfolio summary. 

Sequenced by Target Yield (monthly basis)
*****
Stock  Last  Call Strike  Option  Last Open  Cost   Days  Target 
Symbol Price Mon. Price   Symbol  Bid  Int.  Basis  Exp.  Yield

PDLI   11.94  AUG 10.00   PQI HB  2.80 755    9.14   28   10.2%
HGSI   14.53  AUG 12.50   HQI HV  2.80 324   11.73   28    7.1%
MXIM   39.88  AUG 35.00   XIQ HG  6.80 1494  33.08   28    6.3%
CRGN    5.74  AUG  5.00   CQX HA  1.00 120    4.74   28    6.0%
PPD    17.85  AUG 12.50   PPD HV  6.00 109   11.85   28    6.0%
VMSI   22.76  AUG 22.50   QMP HX  1.40 67    21.36   28    5.8%
AMZN   15.29  AUG 12.50   ZQN HQ  3.40 644   11.89   28    5.6%
SLAB   27.82  AUG 22.50   QFJ HX  6.40 15    21.42   28    5.5%



*****************
NAKED PUT SECTION
*****************

Option Trading Basics: Choosing The Right Strategy
By Ray Cummins

One of our new readers asked for some help in choosing the best
strategy for a beginning option trader.  The problem is, every
trader is different and no single approach to the market can
work for all of them.
 
The key to determining which strategy may be best for any one
individual is suitability; matching an investors risk/reward
attitude and financial condition with the appropriate trading
technique.  The average investor will normally do well with a
position that has limited risk and large profit potential, as
one successful trade can easily overcome a series of losses.
A relatively new trader would probably not profit consistently
as an outright buyer of options but some "buying" strategies,
such as bullish calendar (time) spreads and debit straddles
would be appropriate.  Techniques that utilize conservative
stock-option combinations such as covered-writes and bullish
collars with moderate profit potential and reduced risk would
also be appealing.  Many traders simply want low maintenance
positions with the chance to earn a reasonable profit without
risking excessive amounts of capital.  Low-risk "in-the-money"
debit and diagonal spreads would probably be appealing to this
group.  A more experienced investor, who is willing to take
larger risks for the opportunity of achieving greater profits,
might buy and sell equity-index options.  The wealthy investor
may be attracted to methods that offer the opportunity to make
money against portfolio collateral.  Writing naked options and
"out-of-the money" credit (or butterfly) spreads may solve his
needs.

Regardless of the way you choose to participate in the market,
there will be some level of financial risk.  In derivatives
trading, option buyers have limited risk and unlimited reward
while sellers of options have limited reward and unlimited risk.
With this single perspective in mind, it's obvious why retail
traders generally "buy" options.  Indeed, most investors would
never consider a trade with unlimited risk but, they fail to
understand that almost any position, even a simple call option,
which isn't hedged entails enormous speculation.  A violent,
adverse move, which does not allow for timely adjustments, can
quickly reduce the position to a fraction of its initial value.
Considering the recent volatility in the market, it's even more
difficult to understand why a trader would open an outright long
position without some type of loss-limiting mechanism.  The only
explanation is they believe the probability of catastrophic loss
is very small and the potential for profit is worth the risk.
That brings up another important fact about strategy selection
and that is, the risk/reward characteristics of a trade are but
one of the many components to evaluate.  Equally important in
identifying a favorable position is the probability of profit or
loss.  When one assesses a prospective position, the likelihood
of every possible outcome must be factored into the appraisal.
The question that must be answered: Is the potential reward, even
a very substantial one, sufficient to offset the risk?

In option trading, risk comes in many forms.  Luckily, there are
also many ways to trade.  The most important thing to remember is
the investment objectives are more crucial than the merits of the
technique itself.  If the strategy is not suitable for the trader,
then it should not be used, no matter how attractive it appears.
The goal of every new trader should be to understand the mechanics
of any strategy he or she is using and try to construct a diverse
portfolio of positions based on the correct balance of risk and
reward, with careful regard to one's experience level and trading
style.

Good Luck! 

                           *** WARNING ***

Occasionally a company will experience catastrophic news causing
a severe drop in the stock price.  This may cause a devastatingly
large loss which may wipe out all of your smaller gains.  There is
one very important rule: Don't sell naked puts on stocks that you
don't want to own!  It is also important that you consider using
trading STOPS on naked option positions to help limit losses when
the stock price drops.  Many professional traders suggest closing
the position when the stock price falls below the sold strike or
using a "buy-to-close" STOP at a price that is no more than twice
the original premium from the sold option.


SUMMARY OF PREVIOUS CANDIDATES 
*****

Stock  Price  Last   Call  Strike Price   Gain   Potential
Symbol Picked Price  Month Sold   Picked  /Loss  Mon. Yield

SLAB   26.80  27.82   JUL  22.50  0.60  *$  0.60  18.6%
CLHB   13.52  10.39   JUL  10.00  0.40  *$  0.40  14.0%
YHOO   15.49  13.37   JUL  12.50  0.30  *$  0.30   9.3%
SIE    19.20  18.35   JUL  17.50  0.65  *$  0.65   8.5%
LNCR   31.86  29.87   JUL  30.00  0.55   $  0.42   8.0%
LNCR   30.71  29.87   JUL  27.50  0.70  *$  0.70   7.8%
FCN    33.30  33.51   JUL  30.00  0.35  *$  0.35   7.3%
IBC    28.88  26.29   JUL  25.00  0.35  *$  0.35   6.3%
SCIO   28.94  30.15   JUL  25.00  0.55  *$  0.55   5.8%
ATTC   31.25  31.75   JUL  30.00  0.80  *$  0.80   5.8%
CACI   36.51  32.06   JUL  32.50  0.80   $  0.36   3.4%
APN    10.85   9.84   JUL  10.00  0.25   $  0.09   2.6%
CHBS   41.19  34.51   JUL  35.00  0.35   $ -0.14   0.0%
SWFT   21.50  19.24   JUL  20.00  0.55   $ -0.21   0.0%
FBR    10.65   9.25   JUL  10.00  0.35   $ -0.40   0.0%
SWFT   22.65  19.24   JUL  20.00  0.35   $ -0.41   0.0%
BCE    18.22  16.67   JUL  17.50  0.25   $ -0.58   0.0%
CUM    31.86  28.96   JUL  30.00  0.45   $ -0.59   0.0%
CANI   11.07   8.76   JUL  10.00  0.50   $ -0.74   0.0%
CANI   11.50   8.76   JUL  10.00  0.35   $ -0.89   0.0%
ASYT   20.35  15.39   JUL  17.50  0.35   $ -1.76   0.0%

AMAT   18.48  16.80   AUG  15.00  0.55  *$  0.55  10.7%
CSCO   14.38  13.65   AUG  12.50  0.50  *$  0.50   9.9%
ATMI   23.54  20.06   AUG  20.00  0.75  *$  0.75   9.8%
RGLD   14.10  12.32   AUG  12.50  0.60   $  0.42   7.9%
MU     23.39  22.28   AUG  17.50  0.45  *$  0.45   7.6%
PDLI   10.95  11.94   AUG   7.50  0.20  *$  0.20   7.3%
RIMM   13.82  12.90   AUG  10.00  0.25  *$  0.25   7.2%
DT     12.00  11.72   AUG  10.00  0.25  *$  0.25   7.1%
QCOM   28.11  29.99   AUG  20.00  0.40  *$  0.40   5.8%



*$ = Stock price is above the sold striking price.

Comments:

The selling pressure has been almost unrelenting in recent
sessions and the downdraft that began early in the week had a
full head of steam at Friday's close.  Many of our positions
did not make it past Monday with precipitous declines forcing
early exits in Corinthian Colleges (NASDAQ:COCO), Movie Gallery
(NASDAQ:MOVI), Dollar General (NYSE:DG), Sierra Health Services
(NYSE:SEI), Sketchers (NYSE:SKX), and Yankee Candle (NYSE:YCC).
Despite sizeable declines, many issues in the portfolio have
further downside potential thus we will continue to be diligent
in our position management.  From a conservative perspective,
this means exiting (or adjusting) any plays that have less than
outstanding technical indications in the underlying stocks.  In
addition, investors should limit new positions until the market
exhibits signs of a basing formation and then focus only on the
most bullish issues.  Stocks on the early exit watch-list for
August are: Royal Gold (NASDAQ:RGLD) and Atmi Inc (NASDAQ:ATMI).

Positions Previously Closed: Yellow Corporation (NASDAQ:YELL),
JDA Software (NASDAQ:JDAS)



NEW CANDIDATES
*********

Sequenced by Company
*****
Stock  Last  Call Strike  Option  Last Open  Cost   Days  Target 
Symbol Price Mon. Price   Symbol  Bid  Int.  Basis  Exp.  Yield

BCGI    8.90  AUG  7.50   QGB TU  0.25 0      7.25   28   11.3%
BRCM   19.86  AUG 15.00   RCQ TC  0.40 4309  14.60   28    9.9%
DCTM   12.90  AUG 10.00   QDC TB  0.30 515    9.70   28   11.3%
MCDTA   9.70  AUG  7.50   MQG TU  0.25 10     7.25   28   12.4%
MOT    14.86  AUG 12.50   MOJ TV  0.25 1836  12.25   28    7.1%
NXTL    6.64  AUG  5.00   FQC TQ  0.25 8747   4.75   28   17.2%
QLGC   40.69  AUG 25.00   QLC TE  0.45 1156  24.55   28    5.7%
SNDK   15.08  AUG 12.50   SWQ TV  0.55 152   11.95   28   14.9%

Sequenced by Target Yield (monthly basis)
******
Stock  Last  Call Strike  Option  Last Open  Cost   Days  Target 
Symbol Price Mon. Price   Symbol  Bid  Int.  Basis  Exp.  Yield

NXTL    6.64  AUG  5.00   FQC TQ  0.25 8747   4.75   28   17.2%
SNDK   15.08  AUG 12.50   SWQ TV  0.55 152   11.95   28   14.9%
MCDTA   9.70  AUG  7.50   MQG TU  0.25 10     7.25   28   12.4%
BCGI    8.90  AUG  7.50   QGB TU  0.25 0      7.25   28   11.3%
DCTM   12.90  AUG 10.00   QDC TB  0.30 515    9.70   28   11.3%
BRCM   19.86  AUG 15.00   RCQ TC  0.40 4309  14.60   28    9.9%
MOT    14.86  AUG 12.50   MOJ TV  0.25 1836  12.25   28    7.1%
QLGC   40.69  AUG 25.00   QLC TE  0.45 1156  24.55   28    5.7%


Company Descriptions

LB-Last Bid price, OI-Open Interest, CB-Cost Basis or break-even 
point, DE-Days to Expiry, TY-Target Yield (monthly basis).

*****
BCGI - Boston Communications  $8.90  ** Wireless Sector Rally! **

Boston Communications Group (NASDAQ:BCGI) provides real-time
subscriber management services to the wireless industry.  The
company's real-time subscriber management products include the
following: proprietary software applications, which includes
software suite to manage subscribers; hosting environment,
which is a real-time, large scale, micro-payment transaction
processing platform; Intelligent Voice Services Network, which
includes edge-of-network voice services and Signaling System 7
call control; and Distribution Technology Partnership Program,
which is a national payment network for cash collection.  BCGI
announced Friday better than expected second-quarter net income
and raised its third quarter and full year projections.  Total
revenues rose to $14.3 million from $12.4 million a year ago,
well above analyst's projections.  Traders who believe BCGI's
results will translate to higher share values can speculate on
that outcome with this position.

AUG 7.50 QGB TU LB=0.25 OI=0 CB=7.25 DE=28 TY=11.3%


*****
BRCM - Broadcom  $19.86  *** Solid Earnings! ***

Broadcom (NASDAQ:BRCM) is a provider of highly integrated silicon
solutions that enable broadband communications and networking of
voice, video and data services.  Broadcom designs, develops and 
supplies complete system-on-a-chip solutions and related hardware 
and software applications for every major broadband communications
market.  Broadcom's diverse product portfolio includes solutions 
for digital cable set-top boxes and cable modems; high-speed local,
metropolitan and wide area and optical networks; home networking;
Voice over Internet Protocol; carrier access; residential broadband
gateways; direct broadcast satellite and terrestrial digital broad-
cast; digital subscriber lines; wireless communications; SystemI/
OTM server solutions, and broadband network processors.  Last week,
chip maker Broadcom reported higher-than-expected revenues and a
smaller-than-expected loss for the second quarter of 2002.  The
maker of integrated circuits for broadband devices said sales were
$258.2 million, an 8.1% increase over the $238.8 million the prior
quarter and 22.4% higher than the $210.9 million in revenue in the
year-ago quarter.  The stock appears to have made a successful test
of the September low and investors can use this position to obtain
a relatively low risk cost basis in the issue.

AUG 15.00 RCQ TC LB=0.40 OI=4309 CB=14.60 DE=28 TY=9.9%


*****
DCTM - Documentum  $12.90  *** Improving Fundamentals! ***

Documentum (NASDAQ:DCTM) is the industry's leading provider of
enterprise content management, automating the production, exchange
and personalization of all types of content, making it easier for
its customers to gain a competitive edge by connecting employees,
business partners and customers, worldwide.  Built on an Internet
scale, XML-enabled and standards-compliant platform, Documentum
products manage Web content, power portals, enable collaborative
commerce, and solve regulatory content challenges.  Partners in all
major industries, including high tech, pharmaceutical, healthcare,
consulting services, government, manufacturing, financial services,
automotive, retail, and consumer goods, build and use specialized
applications using Documentum's content management infrastructure.
Documentum recently reported second quarter total revenue of $54
million, a 17% increase over the same period a year ago and a 7%
increase from the first quarter of fiscal 2002.  License revenue
for the second quarter totaled $27 million, an increase of 26%
over the same period a year ago and 8% over the previous quarter.
The company's bottom line appears to be improving and investors
who agree with a bullish technical outlook for the issue should
consider this position.

AUG 10.00 QDC TB LB=0.30 OI=515 CB=9.70 DE=28 TY=11.3%


*****
MCDTA - McDATA Corporation  $9.70  *** Data Storage Sector ***

McDATA Corporation (NASDAQ:MCDTA) is a provider of open-storage
networking solutions and provides highly available, scalable and
centrally managed storage area networks that provide solutions for
enterprise-wide storage needs.  McDATA's core-to-edge enterprise
solutions consist of hardware products, software products and the
associated professional services.  Its SAN solutions improve the
reliability and availability of data, simplify the management of
SANs and reduce the total cost of ownership.  McDATA recently beat
second-quarter expectations for revenue and profitability largely
on the strength of sales of its new 2-gigabit- per-second product
line.  The CEO said the company is seeing a lot of demand so far
in the third quarter and has a strong pipeline of sales for its
switches and higher-end directors, especially those used in SANS.
Analysts say the data storage sector will be one of the first to
recover in the technology group and traders can speculate on that
outcome with this position.

AUG 7.50 MQG TU LB=0.25 OI=10 CB=7.25 DE=28 TY=12.4%


*****
MOT - Motorola  $14.86  *** Wireless Sector Recovery? ***

Motorola (NYSE:MOT) is a worldwide provider of communications
solutions and embedded electronic solutions.  The company's
Intelligence Everywhere solutions include: software-enhanced
wireless telephone and messaging, two-way radio products and
systems, as well as networking and Internet-access products,
for consumers, network operators and commercial, government and
industrial customers; end-to-end systems for the delivery of
interactive digital video, voice and high-speed data solutions
for broadband operators; embedded semiconductor solutions for
customers in wireless communications, networking and transport
markets; integrated electronic systems for various automotive,
industrial, telecommunications, computing, and portable energy
systems markets.  Stocks in the wireless sector have been down
for so long that traders are looking to the group for "value"
plays.  Analysts have labeled Motorola as one of the best picks
in the segment, saying the company is "well positioned" for a
recovery and will outperform its competitors in the near term.
Investors can establish a conservative cost basis in the issue
with this position.

AUG 12.50 MOJ TV LB=0.25 OI=1836 CB=12.25 DE=28 TY=7.1%


*****
NXTL - Nextel Communications  $6.64  *** Buyout Activity! ***

Nextel Communications (NASDAQ:NXTL) provides digital, mobile
communications across the United States by offering integrated
wireless services under the Nextel brand name, primarily to
business users.  The company's digital network constitutes an
integrated wireless communications system utilizing a single
transmission technology: integrated Digital Enhanced Network
technology, which was developed by Motorola.  Customers are able
to access digital mobile telephone services, such as speakerphone,
conference calling, voice mail, call forwarding and additional
line service; Nextel Direct Connect service, which allows any
subscribers in the same local calling area to contact each other
instantly on a private "one-to-one" call or on a group call;
Internet services, mobile messaging services, e-mail and advanced
Java-enabled business applications, marketed as Nextel Wireless
Web services, and international roaming capabilities, marketed as
Nextel Worldwide.  Nextel shares soared last week amid rumors of
consolidation among the nation's major wireless carriers and the
reports that VoiceStream is holding preliminary merger talks with
AT&T Wireless.  Other company pairs may also be viable and traders
are placing their bets on the potential partners.  The company's
upcoming earnings is also fueling interest in the issue and this
position provides a reasonable price from which to speculate on
all the activity.

AUG 5.00 FQC TQ LB=0.25 OI=8747 CB=4.75 DE=28 TY=17.2%


*****
QLGC - QLogic Corporation  $40.69  *** Rebounding Industry! ***

QLogic Corporation (NASDAQ:QLGC) is a designer and supplier of
Storage Area Networking infrastructure building blocks.  Its SAN
infrastructure building blocks, comprised of semiconductor chips,
host board adapters and switches, are integrated into storage
networking solutions of the world's leading system and storage
manufacturers.  Companies such as Sun Microsystems, IBM, Dell
Computer, Compaq Computer Corporation, Fujitsu Microelectronics,
and Hitachi all use some or all of its components in the storage
and systems solutions they market to the world's information
technology environments.  In addition to its original equipment
manufacturer relationships with these and other companies, the
company provides selected Fibre Channel building blocks through
leading distributors, systems integrators and resellers, further
expanding its reach and visibility to the information technology
community.  QLGC has a favorable fundamental outlook with a solid
balance sheet and analysts have a positive outlook for the sector.
Traders who foresee a bullish future in QLGC's share value can
profit from that outcome with this position.

AUG 25.00 QLC TE LB=0.45 OI=1156 CB=24.55 DE=28 TY=5.7%


*****
SNDK - SanDisk  $15.08  *** Mega Memory Maker! ***

SanDisk (NASDAQ:SNDK) designs, manufactures, and markets flash
memory storage products that are used in a wide variety of 
electronic systems.  The company has designed its flash memory 
storage solutions to address the storage requirements of emerging
applications in the consumer electronics and industrial/communica-
tions markets.  SanDisk's products are used in a number of rapidly
growing consumer electronics applications, such as digital cameras, 
PDA's, portable digital music players, digital video recorders and
smart phones, as well as in other applications, such as routers
and switches and wireless communications base stations.  SanDisk's
products include removable CompactFlash cards, MultiMediaCards,
FlashDisk cards and Secure Digital Cards and embedded FlashDrives
and Flash ChipSets with storage capacities ranging from 8 megabytes
to 1.2 gigabytes.  SanDisk recently reported its first profitable
quarter from operations in six quarters, due to strong growth in
global retail and consumer OEM sales, and lower overhead expenses.
SanDisk also said third-quarter product revenues will be slightly
higher than those in the second-quarter and investors appear to be
pleased with the news.  Traders who wouldn't mind owning the issue
near $12 can speculate conservatively on the future share value of
SNDK with this position.

AUG 12.50 SWQ TV LB=0.55 OI=152 CB=11.95 DE=28 TY=14.9%


*****

*****************
SUPPLEMENTAL NAKED PUT CANDIDATES
*****************

The following group of issues is a list of additional 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
and positions are suitable for your experience level, risk-reward
tolerance and portfolio outlook.  They will not be included in
the weekly portfolio summary. 

Sequenced by Target Yield (monthly basis)
******
Stock  Last  Call Strike  Option  Last Open  Cost   Days  Target 
Symbol Price Mon. Price   Symbol  Bid  Int.  Basis  Exp.  Yield

VIRL    9.31  AUG  7.50   UVB TU  0.30 135    7.20   28   14.7%
IFX    17.10  AUG 12.50   IFX TV  0.45 40    12.05   28   12.6%
WEBX   13.88  AUG 10.00   UWB TB  0.35 58     9.65   28   12.2%
PSFT   16.32  AUG 12.50   PQO TV  0.40 6147  12.10   28   11.9%
PYPL   22.55  AUG 20.00   PQR TD  0.60 51    19.40   28    9.2%
AVCT   15.60  AUG 12.50   QVX TV  0.25 50    12.25   28    8.0%
GILD   31.76  AUG 22.50   GDQ TX  0.50 410   22.00   28    7.9%
CLS    21.35  AUG 15.00   CLS TC  0.30 772   14.70   28    7.1%
INVN   25.21  AUG 17.50   FQQ TW  0.35 130   17.15   28    7.1%



SEE DISCLAIMER IN SECTION ONE
*****************************


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

Capitulation On The Horizon!
By Ray Cummins

******************************************************************
                         - MARKET RECAP -
******************************************************************
July 19, 2002

U.S. stocks plunged to five year lows Friday as concerns over the
outlook for corporate profits, accounting scandals, and the value
of the mighty greenback sent investors fleeing from the equity
markets.

The Dow Jones Industrial Average sank nearly 400 points to 8,019
with drug giant Johnson & Johnson (NYSE:JNJ) leading the decline
after the blue-chip pharmaceutical firm confirmed that federal
regulators are probing allegations of fraudulent record-keeping
at a manufacturing plant that makes an anemia drug, one of the
company's best-selling medicines.  The technology-laced NASDAQ
Composite Index slid 37 points to 1,319 on weakness in bellwether
Sun Microsystems (NASDAQ:SUNW).  The computer maker's share value
dropped 25% after the company reported its first quarterly profit
in a year, but forecast another loss as it fights for business in
the midst of the technology downturn.  The broader S&P 500-stock
Index lost 33 points to end at 847 with selling pressure gripping
almost every major market segment.  Declining stocks slam-dunked
advancers almost 3 to 1 on the New York Stock Exchange and 5 to 2
on the NASDAQ.  A hefty 2.63 billion shares changed hands on the
Big Board while 2.37 billion shares were exchanged on the NASDAQ.
Life was better in the bond market, where the 10-year treasury
advanced 13/32 to yield 4.58% while the 30-year government bond
rose 15/32 to yield 5.34%.  Banc of America Securities noted that
domestic equity funds have seen net redemptions for 7 consecutive
weeks, including an incredible $10.7 billion outflow in the last
week alone.  With any luck, the data may be an early indication
of capitulation!


Last week's new plays (positions/opening prices/strategy):
						
Apple Comp.  (NSDQ:AAPL)  JUL17C/JUL17P  $1.65  debit   straddle
Genzyme      (NSDQ:GENZ)  JUL17C/JUL17P  $2.20  debit   straddle
Intel        (NSDQ:INTC)  JUL17C/JUL17P  $1.85  debit   straddle
Eli Lilly    (NYSE:LLY)   JUL50C/JUL50P  $3.25  debit   straddle
Prot. Design (NSDQ:PDLI)  AUG12C/AUG10P  $0.15  credit  synthetic
Ciena        (NSDQ:CIEN)  J0415P/OCT05P  $8.90  debit   put-combo
Sepracor     (NSDQ:SEPR)  JO415P/OCT07P  $6.75  debit   put-combo
Nextel       (NSDQ:NXTL)  JAN05C/AUG05C  $0.80  debit   calendar
Harley Dav.  (NYSE:HDI)   AUG60C/AUG55C  $0.45  credit  bear-call

The recent volatility in the market has been a boon to straddle
traders and last week's extreme share price activity produced
successful outcomes in all of our neutral-outlook positions.
Volatility plays in Apple Computer and Eli Lilly were the big
winners, yielding gains of 50-75% while positions in Intel and
Genzyme also exceeded their respective profit targets.  Among
the directional plays, the synthetic position in Protein Design
Labs was very productive, offering up to $1.25 profit in less
than one week.  The long-term positions in Ciena and Sepracor
offered favorable entry prices and the latter yielded a gain of
up to $0.75 during Wednesday's brief rally.  The speculative
time-selling play in Nextel was extremely active with the issue
jumping almost 25% after the position was initiated.  Because
the premium disparity in the front-month options was so large,
traders had the choice of rolling to a bullish diagonal spread
(JAN-5C/NOV-7.5C) for a small debit or simply closing the play
for a "break-even" exit.  The bearish spread in Harley Davidson
was available at an acceptable credit.


Portfolio Activity:

There is little doubt that the past 24 months will be remembered
as one of the most devastating periods in the stock market for
years to come.  The amount of wealth lost in the recent sell-off
is absolutely staggering and although the month of July did not
contribute significantly (on a percentage basis) to the decline,
it was definitely an era of awakening for many investors.  Those
who trade options were similarly aroused by the brisk increase
in volatility and the corresponding rise in premiums.  The most
successful option trading techniques in this environment were
debit straddles and bearish synthetic positions and we offered
a number of profitable candidates in both strategies.  Among the
winning delta-neutral selections were Advanta (NASDAQ:ADVNB),
Mini-NDX (CBOE:MNX) and SEI Investments (NASDAQ:SEIC).  In the
synthetic positions group, bearish plays in Qlogic (NASDAQ:QLGC),
KLA-Tencor (NASDAQ:KLAC), and Alliant Tech. (NYSE:ATK) enjoyed
excellent gains.  The sole credit (short) strangle in Cephalon
(NASDAQ:CEPH) ended at maximum profit but the volatile activity
in a more recent position, Centex (NYSE:CTX), demonstrated why
the strategy is not particularly favorable in the current market
conditions.  CTX abruptly departed a 7-month trading range last
week, despite bullish data in the housing industry, forcing an
early exit in the neutral-outlook position.  Among the calendar
spreads, Goldcorp (NYSE:GG) ended the expiration period within a
few pennies of our "pick price" and traders can sell a new call
option ($12.50) for the month of August to lower the cost of the
long-term position.  Caci International (NASDAQ:CACI) was not as
productive and the bullish "time-selling" play was closed for a
small loss ($0.45) early in the week.  As you might expect, all
of the bearish credit spreads were profitable including: General
Motors (NYSE:GM), Honeywell (NYSE:HON), Cephalon (NASDAQ:CEPH),
Philip Morris (NYSE:MO), Omnicom (NYSE:OMC), Bank One (NYSE:ONE),
United Technologies (NYSE:UTX), XL Capital (NYSE:XL), and 3M
Company (NYSE:MMM).

Among the bullish positions, there were a few standouts.  Oracle
(NASDAQ:ORCL) rose almost 25% in less than one month after being
selected for a (short) put combination.  The upside activity
provided an acceptable "early-exit" profit in the long-term play.
In the credit spreads group, eBay (NASDAQ:EBAY), Electronic Arts
(NASDAQ:ERTS), and United Health Group (NYSE:UNH) were able to
overcome the rampant selling and spreads in those issues expired
profitably.  In the category of synthetic positions, Kraft Foods
(NYSE:KFT) and Cognizant Technology Solutions (NASDAQ:CTSH) were
the only stocks that provided favorable trading opportunities.

Questions & comments on spreads/combos to Contact Support
******************************************************************
                        - CREDIT SPREADS -

Option traders will be rolling into new positions next week and
with the current unpredictable nature of the equity markets, I
have decided to offer a large assortment of bullish and bearish
candidates for our most requested strategy.  All of these plays
offer favorable risk/reward potential, based on option premiums
and recent technical indications in the underlying stocks.  Your
task is to select the positions that are most appropriate for
your overall market outlook and personal trading criteria.
  
******************************************************************
AET - Aetna  $42.66  *** Downtrend Underway! ***

Aetna (NYSE:AET) is a health benefits company whose business 
operations are conducted in the Health Care, Group Insurance and
Large Case Pensions segments.  On December 13, 2000, the company
was spun off, with the remaining entity merged into a subsidiary
of ING Group N.V.  The Health Care segment consists of health and
dental benefit products including health maintenance organization,
point-of-service, preferred provider organization and indemnity
products, and group insurance products including life, disability
and long-term care insurance products.  The Group Life Insurance 
segment consists principally of renewable term coverage, the 
amounts of which may be fixed or linked to individual employee 
wage levels.  Large Case Pensions manages a variety of retirement
products, including pension and annuity products, offered to 
qualified defined benefit and contribution plans.

PLAY (conservative - bearish/credit spread):

BUY  CALL  AUG-55  AET-HK  OI=371   A=$0.40
SELL CALL  AUG-50  AET-HJ  OI=1507  B=$0.90
INITIAL NET CREDIT TARGET=$0.55-$0.70  PROFIT(max)=12%


******************************************************************
APA - Apache Oil  $49.43  *** Sell-Off In Progress! ***

Apache Corporation (NYSE:APA) is an energy company that explores
for, develops and produces natural gas, crude oil and natural gas
liquids.  The company has interests in seven countries including
the United States, Canada, Egypt, Australia, China, Poland and
Argentina.  As of January 1, 2002, Apache had estimated reserves
of 599 million barrels of crude oil, condensate and NGLs (natural
gas liquids) and four Tcf (trillion cubic feet) of natural gas.
Combined, these total estimated proved reserves are equivalent to
1.3 billion barrels of oil or 7.6 Tcf of gas.  Worldwide, in 2001,
the company participated in drilling 939 new wells, with 828 (88%)
completed as producers.  Canada was Apache's most active region,
with 447 gross new wells at a success rate of 93%.  Apache also
performed over 1,350 major work-overs and re-completions in North
America during the year.

PLAY (conservative - bearish/credit spread):

BUY  CALL  AUG-60  APA-HL  OI=520  A=$0.20
SELL CALL  AUG-55  APA-HK  OI=591  B=$0.65
INITIAL NET CREDIT TARGET=$0.50-$0.60 PROFIT(max)=11%


******************************************************************
APH - Amphenol  $38.60  *** Bottom Fishing! ***

Amphenol Corporation (NYSE:APH) is a designer, manufacturer and
marketer of electrical, electronic and fiber optic connectors,
interconnect systems and coaxial and flat-ribbon cable.  The main
end markets for the company's products are communication systems
for the quickly converging technologies of voice, video and data
communications; industrial factory automation equipment and mass
transportation and automotive applications; and commercial and
military aerospace applications.  The company is also engaged in
developing interconnect products for factory automation, machine
tools, instrumentation systems, mass transportation applications
and automotive applications, including airbags, pre-tensioning
seatbelts and other on board electronics.  In addition, Amphenol
is a supplier of high performance, mil-specification, circular
environmental connectors that require superior performance and
reliability under conditions of stress and hostile environments.

PLAY (moderately aggressive - bullish/credit spread):

BUY  PUT  AUG-30  APH-TF  OI=70   A=$0.30
SELL PUT  AUG-35  APH-TG  OI=112  B=$1.05
INITIAL NET CREDIT TARGET=$0.80-$0.85  PROFIT(max)=19%


******************************************************************
AVE - Aventis  $61.30  *** Revenge Play! ***

Aventis (NYSE:AVE) is engaged in the discovery and development
of pharmaceutical products.  Aventis offers a range of patented
prescription drugs to treat patients with serious diseases in a
number of therapeutic areas, including respiratory and allergy,
cardiology and thrombosis, oncology and diabetes.  The company
also is engaged in the areas of human vaccines and therapeutic
proteins.  Aventis' businesses include Aventis Pharma, Aventis
Pasteur, Aventis Behring, Aventis CropScience and Aventis Animal
Nutrition.

PLAY (conservative - bearish/credit spread):

BUY  CALL  AUG-75  AVE-HO  OI=193  A=$0.15
SELL CALL  AUG-70  AVE-HN  OI=103  B=$0.60
INITIAL NET CREDIT TARGET=$0.50-$0.60  PROFIT(max)=11%


******************************************************************
EBAY - eBay Inc.  $59.55  *** Internet Auction Giant! ***

eBay (NASDAQ:EBAY) is a Web-based community in which buyers and
sellers are brought together to browse, buy and sell items such
as collectibles, automobiles, high-end or premium art items,
jewelry, consumer electronics and a host of practical and other
miscellaneous items.  The eBay trading platform is an automated,
topically arranged service that supports an auction format in
which sellers list items for sale and buyers bid on items of
interest, and a fixed-price format in which sellers and buyers
trade items at a fixed price established by sellers.  Through
its wholly owned and partially owned subsidiaries and affiliates,
the Company operated online trading platforms directed towards
the United States, Australia, Austria, Belgium, Canada, France,
Germany, Ireland, Italy, Japan, the Netherlands, New Zealand,
Singapore, South Korea, Spain, Sweden, Switzerland and also the
United Kingdom.

PLAY (conservative - bullish/credit spread):

BUY  PUT  AUG-45  QXB-TI  OI=1539  A=$0.70
SELL PUT  AUG-50  QXB-TJ  OI=4975  B=$1.20
INITIAL NET CREDIT TARGET=$0.55-$0.65  PROFIT(max)=12%


******************************************************************
FMX - Fomento Economico  $41.50  *** U.S. Market Hedge? ***

Fomento Economico Mexicano, S.A. de C.V. (NYSE:FMX) is Mexico's
largest producer of beer and soft drinks, as well as a major
producer of beer and soft drinks in Argentina.  FEMSA's primary
activities are grouped under its sub-holding companies: FEMSA
Cerveza, which engages in the production, distribution and sale
of beer; Coca-Cola FEMSA, which engages in the production, sale
and marketing of soft drinks; FEMSA Empaques, which engages in
the production and distribution of packaging materials; FEMSA
Comercio, which engages in the operation of convenience stores;
Desarrollo Comercial FEMSA, which retains 50.01% of the voting
capital stock of Empresas Amoxxo, which operates convenience
stores adjacent to gas stations; Logística CCM, which provides
logistics management services to FEMSA Cerveza; and finally,
FEMSA Logística, which provides logistics management services to
Coca-Cola FEMSA, FEMSA Empaques, and third party clients.

PLAY (conservative - bullish/credit spread):

BUY  PUT  AUG-35  FMX-TG  OI=0   A=$0.25
SELL PUT  AUG-40  FMX-TH  OI=10  B=$0.75
INITIAL NET CREDIT TARGET=$0.55-$0.60  PROFIT(max)=12%


******************************************************************
IDPH - IDEC Pharmaceuticals  $38.78  *** On The Rebound? ***

IDEC Pharmaceuticals (NASDAQ:IDPH) is a biopharmaceutical company
engaged primarily in the research, development, manufacture and
commercialization of targeted therapies for the treatment of many
cancer and autoimmune and inflammatory diseases.  The company's
two primary commercial products, Rituxan and Zevalin (ibritumomab
tiuxetan), are for use in the treatment of B-cell non-Hodgkin's
lymphomas.  The company is also developing new products for the
treatment of cancer and various other autoimmune diseases such
as rheumatoid arthritis, psoriasis, allergic asthma and allergic
rhinitis.  Rituxan, the company's first product, and Zevalin, its
second product approved for marketing in the United States, as
well as its other primary products under development, address
immune system disorders such as lymphomas, autoimmune and many
inflammatory diseases.  In addition, the company has discovered
other product candidates through the application of its unique
technology platform.

PLAY (conservative - bullish/credit spread):

BUY  PUT  AUG-25  IDK-TE  OI=385   A=$0.45
SELL PUT  AUG-30  IDK-TF  OI=2447  B=$0.85
INITIAL NET CREDIT TARGET=$0.50-$0.60  PROFIT(max)=11%


******************************************************************
IBM - International Business Machines  $72.00  *** Big Blue! ***

International Business Machines Corporation (NYSE:IBM) makes and
sells computer services, hardware and software.  The company also
provides financing services in support of its computer business.
The company's major operations comprise a Global Services segment;
three hardware product segments (Enterprise Systems, Personal and
Printing Systems, and Technology); a Software segment; a Global
Financing segment; and an Enterprise Investments segment.  IBM
offers its products through its global sales and distribution
organizations.  The company operates in more than 150 countries
worldwide and derives more than half of its revenues from sales
outside the United States.

PLAY (conservative - bullish/credit spread):

BUY  PUT  AUG-60  IBM-TL  OI=4957   A=$0.65
SELL PUT  AUG-65  IBM-TM  OI=12974  B=$1.30
INITIAL NET CREDIT TARGET=$0.70-$0.80  PROFIT(max)=18%


******************************************************************
MMM - 3M Company  $108.88  *** Earnings Due! ***

3M Company (NYSE:MMM), formerly known as Minnesota Mining and
Manufacturing Company, is an integrated enterprise characterized
by substantial inter-company cooperation in research, development,
manufacturing and marketing of products.  3M's primary business
has developed from its research and technology in coating and
bonding for coated abrasives, the company's original product.
Coating and bonding is the process of applying one material to
another, such as abrasive granules to paper or cloth (coated
abrasives), adhesives to a backing (pressure-sensitive tapes),
ceramic coating to granular mineral (roofing granules), glass
beads to plastic backing (reflective sheeting), and low-tack
adhesives to paper (repositionable notes).  The company conducts
its business through six operating segments: Industrial Markets;
Transportation, Graphics and Safety Markets; Health Care Markets;
Consumer and Office Markets; Electro and Communications Markets;
and Specialty Material Markets.

PLAY (conservative - bearish/credit spread):

BUY  CALL  AUG-130  MMM-HF  OI=1218  A=$0.50
SELL CALL  AUG-125  MMM-HE  OI=1004  B=$1.00
INITIAL NET CREDIT TARGET=$0.60-$0.70  PROFIT(max)=14%


******************************************************************
PHM - Pulte Homes  $42.81  *** Sector Slump! ***

Pulte Homes (NYSE:PHM) is a holding company whose subsidiaries
engage in the homebuilding and financial services businesses. 
The company's direct subsidiaries include Pulte Diversified 
Companies, Inc. (PDCI), Del Webb Corporation and others that 
are engaged in the homebuilding business.  PDCI's operating 
subsidiaries include Pulte Home Corporation (PHC), Pulte 
International Corporation and other subsidiaries that are 
engaged in the homebuilding business.  The company also has a
mortgage banking company, Pulte Mortgage Corporation, which is
a subsidiary of PHC.

PLAY (conservative - bearish/credit spread):

BUY  CALL  AUG-55  PHM-HK  OI=508  A=$0.30
SELL CALL  AUG-50  PHM-HJ  OI=198  B=$0.80
INITIAL NET CREDIT TARGET=$0.55-$0.65  PROFIT(max)=12%


******************************************************************
RD - Royal Dutch Petroleum  $42.00  *** Big Down Day! ***

Royal Dutch Petroleum (NYSE:RD) is a holding company that owns,
directly or indirectly, investments in the companies constituting
the Royal Dutch/Shell Group of Companies (the Group).  The Group 
includes a range of other businesses such as Shell Hydrogen, Shell
Internet Works and Shell Capital.  The company has a 60% interest
in the Group.  The operating companies of the Group are engaged
in various activities related to oil and natural gas, chemicals,
power generation, renewable resources and other businesses in over
135 countries.  The companies of the Royal Dutch/Shell Group are 
engaged in the business of exploration and production, gas and 
power, oil products and chemicals and renewables, as well as other
related activities.  The Royal Dutch/Shell Group of Companies has
grown out of an alliance made in 1907 between Royal Dutch and 
Shell Transport, by which the two companies agreed to merge their 
interests on a 60:40 basis, while remaining separate and distinct
entities.

PLAY (conservative - bearish/credit spread):

BUY  CALL  AUG-55  RD-HK  OI=473   A=$0.15
SELL CALL  AUG-50  RD-HJ  OI=3460  B=$0.50
INITIAL NET CREDIT TARGET=$0.45-$0.60  PROFIT(max)=9%


******************************************************************
UPS - United Parcel Service  $67.00  *** Rally Mode! ***

United Parcel Service (NYSE:UPS) is an express carrier package
delivery company and a provider of specialized transportation and
logistics services.  The company delivers packages each business
day for 1.8 million shipping customers to six million consignees.
In 2001, UPS delivered an average of more than 13 million pieces
per day worldwide.  UPS' primary business is the time-definite
delivery of packages and documents throughout the United States
and in over 200 other countries and territories.  The company has
also established a vast global transportation infrastructure and
developed a large portfolio of guaranteed delivery services, and
it supports these services with advanced technology.  The company
provides logistics services, including integrated supply chain
management, for major companies worldwide.  UPS is also engaged
in the delivery of goods purchased over the Internet.

PLAY (conservative - bullish/credit spread):

BUY  PUT  AUG-55  UPS-TK  OI=2120  A=$0.25
SELL PUT  AUG-60  UPS-TL  OI=3499  B=$0.80
INITIAL NET CREDIT TARGET=$0.60-$0.90  PROFIT(max)=14%


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


************************Advertisement*************************
”If you haven’t traded options online – you haven’t really traded 
options,” claims author Larry Spears in his new compact guide book:

“7 Steps to Success – Trading Options Online”.

Order today and save 25% (only $15) by clicking on PreferredTrade 
and clicking on the link to the book on its home page.

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


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

We have once again lowered support in several areas throughout the 
section


To Read The Rest of The OptionInvestor.com Market Posture Click Here
http://www.OptionInvestor.com/marketposture/072102.asp


**********
DISCLAIMER
**********

Please read our disclaimer at:
http://www.OptionInvestor.com/page/oin/aboutus/disclaimer.html


**************************************************************
ADVERTISING INFORMATION

For more information on advertising in OptionInvestor Newsletter,
or any Premier Investor Network newsletter please contact:

Contact Support

DISCLAIMER

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.

To ensure you continue to receive email from Option Investor please add "support@optioninvestor.com"

Option Investor Inc
PO Box 630350
Littleton, CO 80163

E-Mail Format Newsletter Archives