Option Investor
Newsletter

Daily Newsletter, Wednesday, 02/19/2003

HAVING TROUBLE PRINTING?
Printer friendly version
The Option Investor Newsletter                Wednesday 02-19-2003
Copyright 2003, All rights reserved.                        1 of 2
Redistribution in any form strictly prohibited.


In Section One:

Wrap: Anyone's Guess
Futures Wrap: Contained in a Range
Index Trader Wrap: (See Note)
Weekly Fund Family Profile: Mosaic Funds
Options 101: Perspective

Updated on the site tonight:
Swing Trader Game Plan: Empty Tank

Posted online for subscribers at http://www.OptionInvestor.com
*******************************************************************
MARKET WRAP  (view in courier font for table alignment)
*******************************************************************
02-19-2003                   High    Low     Volume Advance/Decl
DJIA     8000.60 -  40.55  8043.11 7935.27   1268 mln  382/864
NASDAQ   1334.32 -  12.22  1344.59 1322.12   1164 mln  359/790
S&P 100   428.80 -  2.68    431.48  425.13   totals    741/1654
S&P 500   845.13 -  6.04    851.17  838.79
RUS 2000  360.28 -  4.25    364.53  358.92
DJ TRANS 2105.39 -  35.26  2142.23 2097.15
VIX        35.22 -   0.34    36.40   35.07
VIXN       47.63 -   0.77    49.24   47.56
Put/Call Ratio 0.81
*******************************************************************

Anyone's Guess
by Steven Price

Time for some consolidation.  After three days of impressive
gains, the bulls finally took some profits off the table.  This
pullback came in spite of some generally positive news, but at
this point, just how much financial news is affecting the markets,
versus geo-political concerns, is anyone's guess.

The big economic item on this morning's agenda was the housing
data.  Housing starts rose a mild 0.2%, but this was an upside
surprise after the consensus favored a drop after December's
strongest reading in 15 years. On the flip side, housing permits
fell 5.6%, which was a larger than expected drop.  It is clear,
though, that low interest rates continue to spur a strong housing
market.  While it seems that prices have begun to level off in
many areas of the country, there is a backlog that has been built
up over the past year that may continue to support the housing
starts number for several months. Housing stocks such as Hovanian
have cited that backlog as evidence of strength.  Of course, if
permits continue to fall, then the backlog will eventually dry up
and the starts number won't look as good.

Speaking of interest rates, many Fed watchers will note the FOMC's
reluctance to lower rates any further than they sit at this time.
Specifically, Alan Greenspan's recent testimony before Congress
indicated that we really won't know just how the current policy
will affect the economy until the Iraq conflict is behind us.
While it seems the Fed is a little uncomfortable with rates this
low and would like to raise them, there are a number of concerns
that are now actually beginning to favor another possible rate
cut. First and foremost is the economy.  Whether we'll have to
wait until the war is behind us or not, things do not seem to be
improving, with almost weekly layoff announcements. Even Greenspan
has admitted that spending is pretty much on hold until the
situation is resolved and if the Iraq situation continues to drag
on, lowering once again may be the logical short-term step.  The
Fed Funds Futures have ticked to 98.78 (100-98.78 = 1.22 vs.
current rate of 1.25), indicating a very little chance of the Fed
lowering rates at its next meeting. The June Fed Funds Futures
show a slightly higher chance, currently trading 98.85 (100-98.85
= 1.15).   While neither of these are showing much conviction, the
point is that they are still trading in favor of a cut, as opposed
to a rise. The problem with lowering rates further is the fact
that we continue to dig deeper into debt with each lowering,
making it difficult to then raise rates when the economy does
begin to get better.  Total household debt is at record levels,
both when compared to disposable income and in absolute terms.
Right now those debt levels are not preventing consumers from
spending - the one factor that seems to be propping up the
economy, because the debt is serviceable at lower interest rates.
Corporations are also carrying record levels of debt and its
current interest payments are at all-time highs.  If rates were to
go up, an already weak business spending environment may get even
worse. As of now, even the spending that is occurring is coming
under continuously greater scrutiny due to credit concerns.

Financials also took a hit today.  It seems the deteriorating
credit issue just won't go away.  J.P. Morgan started the concerns
over bad telecom debt last year and those concerns have bled to
almost every business sector. Today we got another downgrade based
on credit concerns. MBNA said its net credit losses at Jan. 31
were 5.49% of loan receivables. Wachovia, J.P. Morgan, Goldman
Sachs and Salomon cut estimates for MBNA, citing a significant
deterioration in credit quality during January. It said the
deterioration was concentrated in the consumer lending portfolio,
so apparently businesses are not the only ones unable to pay their
debts.

We got some news on the international front, but it didn't seem to
have much of an impact.  Turkey is still negotiating with the U.S.
to allow troops to be based in the country for a possible move
into Iraq.  The U.S. has offered about $6 billion in grants and
$20 billion in loan guarantees. Turkey has countered that it would
suffer greater losses from tourism, higher oil costs and soaring
interest rates on foreign debt.  Turkey is asking for more money,
saying, "If our support has value for the United States, then the
United States needs to keep in mind our sensitivities."  The U.S.
would like to station 40,000 troops there for an invasion from the
North that the U.S. says would shorten the war.   Somehow it seems
to me that if it has come down to a matter of dollars, an
agreement will be reached at some point.  After all, Turkey's
concerns about higher oil costs and soaring interest on debt will
affect them whether they allow the troops or not and an extra $26
billion for their permission will be difficult to turn away.  The
population of the country is already opposed to allowing troops,
but apparently that hasn't stopped the government from putting a
price on its participation.

After today's sell-off, we are left to determine whether we have
seen a trend reversal and the drop offered an opportunity to buy a
pullback, or if we saw the end of a short-covering rally and its
time to jump in short and target new relative lows. It is not an
easy question to answer since it seems hard to explain the rallies
of the last few days to begin with.  The fact that we were in
oversold conditions according to bullish percents and also
approaching July lows, certainly could have led to shorts doing
some profit taking.  The rallies of the past couple of days have
also come on relatively light volume, which is a red flag for
bulls.

Daily Chart of the Dow




A look at the point ad figure charts also shows that although we
got a big bounce, making up much of the sell-off of the previous
several days, we ended quite a ways from buy signals in the major
indices. Combined with bullish percents that still remain in a
sinking column of "O," these indications are that we are still
headed lower and simply saw either a short-covering rally or an
oversold bounce (or more likely a combination of the two). The
fact that today's afternoon bounce found sellers at 8000 may be
indicating that the bulls are running out of steam after the nig
run. Of course, the fact that the Dow managed to close just over
the mark, at 8000.60 could also indicate the bulls were able to
muster enough strength to break that level after a bigger sell-
off.  If nothing else is clear, we seem to have a line drawn in
the sand that we can focus on tomorrow.   Certainly in the current
geo-political environment, technical indicators cannot account for
news risk, as they are numbers based only.  However, they do
measure the result of whatever action stems from that news risk
and still provide a valuable tool to assess direction as well it
is possible to assess under current conditions.   Of course, we
can technically analyze until our heads cave in and if Saddam
Hussein flees into exile, we will most likely see a huge rally, at
least temporarily.

Point and Figure Chart of the Dow




Bullish Percent of the Dow





The semiconductor stocks got a pat on the back, in spite of last
night's disappointing book-to-bill number. Yesterday's info showed
a drop of 10% in orders and 9% in shipments. The drop in the BTB
number to 0.92 was below analyst expectations between 0.93 and
0.98. However, Morgan Stanley raised its rating on the entire
sector, saying that the risk/reward parameters have become more
attractive over the past few months and that the miss was a non-
event.  It expects the chip stocks to out perform the market over
the next 12-16 months. Outperforming the market is a curious
proposition, since following the upgrade, many of these stocks
proceeded to wet the bed.  Interestingly enough, this seemed to be
the first group to find support last week, basically flat lining
around 260, before heading higher.  While the Dow and Nasdaq both
sunk throughout much of last week, the SOX began to build a base
and even creep higher.  Was this really the first indication that
we should have been looking for a turnaround?  The index has shown
a good correlation to the broader markets, as it reflects IT
spending by both consumers and businesses and this time it does
seem we should have paid attention when it began to bounce. Morgan
also gave individual upgrades to Intel, Texas Instruments and
Xilinx.  Keeping with the same theory of this index giving us
reliable signals, this morning, traders seemed to focus more on
news from Micron that it was cutting 10% of its workforce and
began taking some recent profits out of the chips. The SOX ended
the day at 288.99, after pulling back 2.64 points.

The wireless sector also suffered the upgrade curse today. Credit
Suisse First Boston raised their rating on the wireless equipment
sector.  The firm said trading opportunities exist over the next
3-6 months and that valuations now look attractive.  It cited
Nokia and Qualcomm as having the most upside.  The upgrade was
followed with a Nokia downgrade by Wachovia, based on the firm's
Global Handset Sentiment Index, which indicated that demand for
replacement handsets over the next quarter could be weaker than
expected.  On top of the dueling analysts, Nortel said that a
price war in the wireless equipment sector could cause the entire
market to drop 10% in 2003, which is worse than the predicted
single-digit losses.  Let's see, I don't recall my college
economics classes teaching that lower demand and lower prices
equal a stock buying opportunity.

Another indicator that has gotten some attention here at OI
recently is the Market Volatility Index (VIX).  Market Monitor
subscribers will note the discussions from Mark, Linda and myself
with regard to support and resistance levels that have given us
advance clues and continue to do so. The VIX reflects option
premium levels in the OEX and generally moves higher as the market
sinks and lower as it rises.  As it reaches resistance, it often
indicates the end of a drop and possibility of a bounce and as it
hits support it often portends a pullback after a rally.  The 40%
resistance level has served us well recently.  It has predicted
intraday bounces and the reluctance to break above that resistance
level eventually foreshadowed a more decisive turnaround in the
equities.  The 35% level had served as resistance as the Dow
dropped from January highs down to support in the 8200-8300 range.
After the Dow broke that support, the VIX also broke resistance,
and moved into the 35-40 range.  The rebound of the past few days
had driven the VIX back down from 40 at the recent equity lows, to
support (previous resistance) at 35.  When we hit that support, lo
and behold, we got an equity pullback.  While this indicator is
not exact, it has been giving as reliable signals on a short-term
basis.

Chart of the VIX




Today's trading still amounted to another low volume day. While
the range seems large with a high in the Dow of 8043 and a low of
7935, only one stock managed more than a dollar's worth of
movement. The moves we are seeing are almost always pegged to geo-
political tensions.  It's either renewed war fears or a possible
delay due to some new factor. This afternoon we got conflicting
reports about a second Iraqi resolution, with the White house
saying it could come in the next week or two, contrary to reports
that the soonest would be in March after the next Blix report. It
is next to impossible to guess what will develop next.  Let's do
our best to trade what we see, but be ready to protect ourselves
with tight stops ahead of whatever tomorrow's developments may
bring. Right now, we are still seeing internal bearishness on the
PnF charts, in spite of the rally on Friday and Monday.  However,
it was a big reversal, so we need to be cautious. I'd like to
simply say "short any rally," and that is what I am personally
looking to do.  However, I am keeping it small, with mostly 1/2
positions, as the White House has yet to fill me in on the "real"
schedule.


************
FUTURES WRAP
************

Contained in a Range
By John Seckinger
jseckinger@OptionInvestor.com

All three futures contracts remain wedged between a few notable
retracement areas; however, current support was viewed as
resistance just a few sessions ago.  If prices do continue to
rise, the operative word might in fact be "wedge".

Wednesday, February 19th at 4:15 P.M.

Contract       Last    Net Change    High        Low       Volume

Dow Jones     8000.60    -40.55    8043.11     7935.27
YM03H         8013.00    -34.00    8037.00     7929.00     23,983
Nasdaq-100    1005.88     -9.03    1014.64      994.25
NQ03H         1009.50     -9.00    1022.00      994.50    225,388
S&P 500        845.13     -6.04     851.17      838.79
ES03H          846.75     -4.75     852.00      837.75    504,379

Contract         S2         S1       Pivot        R1         R2

Dow Jones      7885.15    7942.87   7992.99    8050.71    8100.83
YM03H          7885.00    7949.00   7993.00    8057.00    8101.00
Nasdaq-100      984.72     995.30   1004.83    1015.41    1024.94
NQ03H           981.25     995.25   1008.75    1022.75    1036.25
S&P 500         832.65     838.89    845.03     851.27     857.41
ES03H           831.25     839.00    845.50     853.25     859.75

Weekly Levels

Contract         S2         S1        Pivot        R1         R2

YM03H         7486.00    7706.00    7836.00    8056.00    8186.00
NQ03H          919.25     952.25     971.25    1004.25    1023.25
ES03H          790.75     814.00     828.25     851.50     865.75

Monthly Levels (January's High, Low, and Close)

Contract        S2         S1        Pivot       R1         R2

YM03H         7237.00    7642.00    8253.00    8658.00    9269.00
NQ03H          875.75     930.25    1019.25    1073.75    1162.75
ES03H          775.00     814.75     876.00     915.75     977.00

YM03H = E-mini Dow $5 futures
NQ03H = E-mini NDX 100 futures
ES03H = E-mini SP500 futures

Note: The 03H suffix stands for 2003, March, and will change as
the exchanges shift the contract month. The contract months are
March, June, September, and December. The volume stats are from
Q-charts.

Before we begin, let us take a look at Jim Brown's day in the
Futures Monitor. Recapping his signals:

Short 847.75, exit 845.50, change +2.25
Short 843.00, exit 840.50, change +2.50
Long  840.00/840.50, exit 841, change +0.75

Total for the day: +5.50
Total for the week: +4.00

For information on the Futures Monitor and Jim Brown's posts,
please go to the following link and download the current market
monitor. If you already have the most recent version, simply go
to the Futures Monitor Post on the upper left hand portion of the
applet.

http://www.OptionInvestor.com/itrader/marketbuzz/download.asp

The March E-mini S&P 500 Contract (ES03H)

The ES contract once again failed to rise above the "Zone of
Resistance" area from 850 to 854, but bids certainly entered as
839.50 and the 61.8% retracement area was tested during the
session (Retracement from October to December move).  So, who
wins?  I will give the slight advantage to bulls; moreover, as
the chart below notes, there is still the chance that we are in a
large wedge formation and will test the 861.25 level in the near
term (the "area" is actually from 861-866).  A daily close under
839 should have bulls worried, and this should be the catalyst
for a quick move to 830.  Also on Wednesday, traders did see a
bounce off the 845 area before 839.50 was tested.  It is then no
coincidence that this area (845.50) will be the pivot for
Thursday.  Also note that the ES contract is still in a fairly
aggressive bullish regression channel, but this channel will
definitely be broken if 839 is tested again.

Chart of ES03H, 120-minute




Looking at a 30-minute chart of the ES contract, it is definitely
nice to see daily levels lining up with more intermediate
areas.  Thursday's R1, pivot, and S1 all line up well with
retracement areas based off weekly levels.  Yes, holding a
futures contract for a week is an intermediate position (grin).
If the ES settled below 839.50, I could see more of a reason to
sell rallies going forward; however, this was a rejection on an
intra-day basis and was actually a slight victory to bulls.  Also
note that I am putting more emphasis in the weekly pivot below as
support than the daily S2 reading (828.25 versus 831.25,
respectively).

Chart of ES03H, 30-minute




Bullish Percent of SPX: This indicator rose 0.40% to 35.00% on
Wednesday, and will remain in "Bull Correction" status with a
column of O's unchanged at 14.  The last column of "O's" ended at
20 percent.  This indicator will have to move up to 42% to form a
column of X's and have bears less aggressive.  Therefore, short-
and long-term sentiment remains with bearish traders.  Looking at
P&F chart of the SPX, resistance remains at the 860-865 level,
while support is seen near 835.  On a bar chart of the SPX, going
forward I believe a daily close underneath 839 would be viewed as
bearish.  A close above 848 now will most likely be viewed as
slightly bullish.

The March E-mini Nasdaq 100 Contract (NQ03H)

The NQ contract rose above the weekly pivot of 1019.25 on
Wednesday, but was no match to the strong resistance zone from
1019.50 to 1025.  If 1025 is taken out, look for a move to 1043.
The daily R2 level comes in at 1036.25.  Bearish traders did get
their roll from the 1020 area down to 1003, but 983 didn't come
close to being tested.  The example I gave for Wednesday ("Move
to 1023 and then NQ falls under 1019.50, signaling weakness")
worked well, and can actually still be used for Thursday as well.
Remember, if 1025 is taken out, a trader can actually go long
with a stop just below the weekly pivot.  Looking at the chart
below, note that the NQ contract bounced off its 22 EMA and
closed above its 50 EMA - a slightly bullish sign.  The top of
the daily Bollinger Band is in the resistance zone, and should
increase its significance.

Chart of NQ03H, Daily




Taking things to a 60-minute chart, things get a little bit
harder to read.  Aggressive traders can look for bids at the
995.25 level, but stops would have to be tight.  I definitely
would rather look to sell resistance and buy support.  At least
until the market proves that we are in another range than from
1025 to 983.  Sentiment is neutral at current levels.

Chart of NQ03H, 60-minute




Bullish Percent for NDX:  The bullish percent for the NDX rose
one-percent to 35 on Wednesday, but will still remain in
"Bear Confirmed" status.  This index needs a print of 40% to
reverse back into a column of X's.  The last column of O's ended
at a reading of 14%.  The NDX, according to P&F charts, still has
a bearish objective of 775, and still did not manage to get a
1025 print to warrant a column of X's.  Intermediate support is
seen at 875, with a pivot at 1000.

The March Mini-sized Dow Contract (YM03H)

The YM contract didn't test the 8052 area on Wednesday, but its
significant should remain strong going forward.  Note:  Daily R1
comes in at 8057.  Above this level, the main area of resistance
is still seen from 8142 to 8186.  With the daily pivot just below
at 7993 and in the middle of the range from 7935 to 8052, it is
hard to gauge sentiment.  Neutral at best.  If selling pressure
does take over, I expect a bounce from the zone of 7918 to 7935.
A daily close above 8052 or below 7919 should have momentum
continuing on Friday.  It is definitely hard to be neutral here,
so aggressive traders could look to go long with a stop just
under the daily pivot.

Chart of YM03H, 90-minute




Bullish Percent of Dow Jones: Using P&F analysis, only a 7950
print will warrant a column of O's and get bulls worried about
the current "low pole" formation.  The bearish objective for the
blue chips remains at 7100.  Note:  A move above 8200 would give
a 'buy signal'.  Resistance is seen at 8150, with support still
not seen until the 7550 area.  Based on these quadruple patterns,
it actually is common for the market to reverse back and test the
recent lows (7650 area).  As far as the bullish percent is
concerned, this indicator rose 3.33% to 16.67% and will need to
reach 20% to get into "Bull Alert" status.  The column of O's
remains at twenty-three. Note: The last column of O's ended at
10%.

Good Luck.

Questions are welcomed,

John Seckinger


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

Check the Site Later Tonight For Jeff’s Index Trader Article
http://members.OptionInvestor.com/itrader/marketwrap/iw_021903_1.asp


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


**************************
WEEKLY FUND FAMILY PROFILE
**************************

Mosaic Funds

This week's Fund Family Profile takes a look at Wisconsin-based
Madison Investment Advisors and the Mosaic Funds, a fund family
of pure no-load funds offering various equity, fixed income and
money market strategies for investors.  Portfolio management is
provided by Madison Investment Advisors, a 100% employee-owned
investment management firm founded in 1974 that now has over $7
billion in net assets under management, including their Madison
Scottsdale and Madison Mosaic subsidiaries.  For their services,
Madison Investment Advisors receives a fee from each Mosaic fund
(included in expense ratio).

Like many investment firms, Madison Investment Advisors ("MIA")
built its reputation managing institutional client assets.  So,
the lion's share of the $7 billion in managed assets is on the
institutional side.  MIA lists as its core expertise 1) active
bond management, 2) active (risk-managed) equity management and
3) tailored balanced portfolios.  As a result of their success
and growth, the firm now has a staff of 50 people, including 20
investment professionals.  Log on to www.madisonadv.com for more
information on Madison Investment Advisors, Inc.

Jay Sekelsky, Chris Berberet, and Frank Burgess are key members
of the Mosaic Funds portfolio management firm.  Jay Sekelsky is
one of the firm's principals and senior portfolio managers.  He
has managed the top-rated Mosaic Investors Fund (MINVX) for the
last 13 years (since 1990) along with the equity portion of the
Mosaic Balanced Fund (BHBFX).  In 1996, he added Mosaic Mid-Cap
Fund (GTSGX) to his portfolio management duties.  He's the lead
equity manager today for Madison's equity portfolios.  A second
principal and senior portfolio manager, Chris Berberet oversees
Madison's fixed income strategies, and runs several Mosaic bond
fund portfolios.  He also manages the fixed income stake of the
Mosaic Balanced Fund.

Frank Burgess is founder, president and chief investment officer
of Madison Investment Advisors, and has managed Mosaic Foresight
Fund (GEWWX) for the last six years.  According to his biography,
he is a noted speaker on investment strategies and market trends.
For more information on the portfolio management team, go to the
Mosaic Funds website located at www.mosaicfunds.com.

The Mosaic Funds are 100% no-load, meaning they charge no front-
or back-end load fees.  Excluding the Mosaic Institutional Bond
Fund, the Mosaic mutual funds require a minimum initial purchase
of $1,000.  Annual expense ratios are "average to below average"
overall, ranging from a low of 0.99% on Mosaic Investors Fund to
a high of only 1.25% on Mosaic Foresight Fund.  From a cost and
expense perspective, most Mosaic fund products are attractively
priced in the retail marketplace.  Some or all of the funds are
offered on a no-load, no-transaction fee basis through Schwab's
OneSource and other leading NTF platforms, increasing the appeal
of the Mosaic Funds.

Fund Overview

The Mosaic Funds currently provide four stock funds, three bond
funds, four municipal bond funds, and two money market funds to
personal investors.  Our focus will be on the four equity funds
and three taxable bond funds, which may be suitable investments
for regular and tax-deferred accounts.  Depending of your "tax"
bracket, you may find that one of the Mosaic tax-free municipal
funds is a more suitable match for you, but we'll leave that to
you to explore.

Mosaic takes a long-term perspective in managing its four stock
funds, believing that time has a way of smoothing out the bumps
in the road and offering a different viewpoint.  So, you should
share this long-term view with Mosaic if you are thinking about
investing in one of the equity fund products.  All of the stock
funds combine value and growth characteristics, which also help
to smooth returns over time since value and growth do better at
different times.  All four equity funds fall into Morningstar's
"blend" style box and vary in average market capitalization, as
follows:

 Mosaic Equity Funds: Average Market Cap
 Mosaic Investors (MINVX) $27.9 Billion
 Mosaic Balanced (BHBFX) $27.2 Billion
 Mosaic Foresight (GEWWX) $17.7 Billion
 Mosaic Mid-Cap (GTSGX) $3.3 Billion

If you think in terms of five capital sectors (giant, large, mid,
small and micro), the Mosaic Investors and Mosaic Balanced funds
invest their assets primarily in the three largest capital tiers,
giant-cap, large-cap and mid-cap, and favor those companies with
attractive equity prices and favorable growth prospects.  Mosaic
Foresight Fund moves down a little bit in overall market cap but
still invests primarily in the top three capital tiers.  Mid-Cap
Fund, as its name implies, concentrates assets in mid-cap stocks,
but maintains some exposure to large-cap and small-cap stocks as
well.

Equity analysis focuses on a bottom-up approach, and identifying
the "best of the best."  Although the Mosaic equity funds may be
a little more concentrated than some diversified equity products,
risk management is a primary focus.  Mosaic Investors and Mosaic
Balanced have both produced below average risk relative to their
category peer groups, according to Morningstar, increasing their
appeal.  Many times, funds that have good cost and risk controls
have solid long-term performance results.  As you'll see shortly,
such is the case with these two Mosaic equity funds.

Mosaic's three taxable bond funds are conservatively managed and
invest principally in higher-rated, investment grade obligations
with short-term and intermediate-term maturities.  Here the firm
takes a core investment approach, like they do on with the stock
funds, seeking strong, consistent returns over time with limited
(controlled) volatility.  In the case of fixed income management,
they actively manage duration to control portfolio risk and they
avoid big credit quality bets.  Only Mosaic Intermediate Income
Fund (GITMX) may invest in lower-quality, higher yielding bonds,
and that exposure is limited to 35% of assets.

Below is a summary of the two Mosaic taxable bond funds that are
available to retail investors.

 Mosaic Bond Funds: Investment Category
 Mosaic Government (GIGVX) Intermediate-Term Government
 Mosaic Intermediate Income (GITMX) Intermediate-Term Bond

Essentially, one fund focuses its investments in U.S. government
securities to ensure highest credit quality, while a second fund
invests in high-quality government and corporate debt securities,
with some high-yield exposure for greater total return potential.
In both bond funds, Mosaic utilizes various screens and economic
indicators to track the bond market and interest rate trends, to
capture the best value.  Investment-grade bond funds that invest
a portion of assets in high-yield securities offer greater total
return potential over time but can subject the portfolio to more
volatility in the short term.

Like the Mosaic stock funds, risk management is a primary focus.
However, the more active a bond fund manager is with regards to
portfolio duration or credit quality structure, the greater the
fund's share price fluctuations may be.  Accordingly, it might
be helpful to have a long-term perspective when considering one
of the Mosaic bond funds since they do actively manage duration
and take some credit risk in the intermediate-term bond product.
Like value and growth stocks, investment-grade bonds and higher
yielding, speculative-grade bonds outperform at different times.

Fund Performance and Ratings

Madison Investment Advisors' flagship Mosaic Investors Fund has
the family's only Morningstar highest 5-star rating relative to
category peers.  When compared with other large-cap blend funds,
Mosaic Investors Fund produced above average returns with below
average risk overall.  Mosaic Balanced Fund has a 4-star rating
signifying above-average, risk-adjusted returns versus category
peers (i.e. domestic hybrid funds).  Jay Sekelsky deserves much
of the credit for the success of the two products as their lead
equity manager.






Although the Mosaic Investors Fund (MINVX) has been subject to
significant share price fluctuations over the past three years
(see chart above), it has actually done a very good job versus
its large-cap blend category peers of preserving capital.  For
the trailing 3-year period through February 18, 2003, the fund
lost just 1.2% on an annualized basis, compared with an annual
equivalent loss of about 13% for the market as measured by the
S&P 500 index.  The average large-blend fund lost 12.7% a year
over the same time period.

Through January 31, 2003, Mosaic Investors Fund had a trailing
10-year average annual return of 9.3%, according to Morningstar,
beating the S&P 500 index by 0.3% a year on average during that
period.  That was good enough to rank in the top 14% within the
Morningstar large-cap blend category.  Note the fund's trailing
3-year and 5-year average total returns as of February 18, 2003
rank in the large-blend category's top decile.

Mosaic Balanced Fund's trailing 3-year performance ranks in the
top 12% of the Morningstar domestic hybrid fund category, while
its trailing 5-year and 10-year returns are top quartile within
the category.  This fund would likely have a 5-star rating from
Morningstar if the fund's fixed income portion had better risk-
adjusted return performance.  Christopher Berberet, who manages
the fixed income stake, has a 2-star and a 3-star rating on the
two Mosaic bond funds that he manages.  Still, the fund's long-
term performance record is strong.

Over the trailing 10-year period through January 31, 2003, the
Mosaic Balanced Fund produced an annualized return of 8.4% for
shareholders, lagging the market (S&P 500) by only 0.6% a year.
That performance was good enough to rank it the category's top
quartile.  For comparison purposes, the average US hybrid fund
returned 6.7% a year on average over the same period while the
average US large-cap blend fund had a 7.5% average return, per
Morningstar.  So, the Mosaic Balanced Fund outpaced pure stock
funds over the past decade through the various markets ups and
downs, and came close to outperforming the S&P 500 index bogey.

Conclusion

The other Mosaic offering that looks attractive is the Mid-Cap
Fund (GTSGX), which provides more significant exposure to mid-
sized companies and offers greater total return potential than
its Mosaic Balanced or Mosaic Investors fund siblings - albeit
with greater potential risk.

In terms of risk, conservative equity investors may prefer the
Mosaic Balanced Fund.  General equity investors seeking growth
primarily may find the Mosaic Investors Fund to be appropriate
for their investment goal.  Those looking for higher potential
return and willing to accept higher potential risk may wish to
consider the Mosaic Mid-Cap Blend Fund.  All three stock funds
benefit from experienced management, a risk-controlled process
and below average expenses.

Relative return performance is less robust on the fixed income
side where many bond portfolios have been tripped up by credit
downgrades and corporate bankruptcies.  When it doesn't pay to
assume credit risk, funds like Mosaic Intermediate Income Fund
can lag similar funds due to their lower-quality debt exposure.
Here, your better bet may be the Mosaic Government Fund (GIGVX),
which invests in high-grade government obligations.  Sometimes,
reaching for extra yield just isn't worth it.

For more information on the Mosaic Funds or to download a fund
prospectus, log on to the www.mosaicfunds.com website.

Steve Wagner
Editor, Mutual Investor
steve@mutualinvestor.com


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

Perspective
by Mark Phillips
mphillips@OptionInvestor.com

Sometimes in the day to day news, price fluctuations and minutia
of trading, it is easy to lose sight of the big picture.  For
every voice calling the market "a bargain" with "compelling
values", there is a competing voice telling us all the risks
that currently exist, followed by a prediction of DOW 5000 or
lower.  What's an investor to do?  Trust their own eyes!

I've already gone on record at the beginning of the year, stating
my belief that while 2003 is going to be a rocky year, the broad
market will finish up with a gain, avoiding the dreaded 4th
consecutive down year.  But it isn't going to be a pretty
process getting there.  If you missed my bold prognostication,
feel free to experience my thoughts vicariously at the following
link.

'Tis The Season

As traders, the eventual destination is far less interesting,
when compared to understanding the path we are likely to take
in reaching that destination.  As the LEAPS editor, my primary
focus is on the weekly and daily charts, as that is where I
attempt to identify the trend that is likely to persist over a
period of weeks and possibly as long as 3-4 months.  A quick
look at the weekly and daily chart picture right now tells us
that the broad market is attempting to recover from the very
oversold conditions produced by the past 2 months of rather
persistent selling.

While Bullish Percent charts are either in or very near
oversold territory, we know that bears are now carrying the bulk
of the risk over the near term.  But that doesn't mean that
bulls are safe to plunge in with the expectation that last
week's lows were the bottom of the most recent broad market
slide.  For this sort of discussion, I find charts do a much
better job of depicting what I'm talking about than my words do,
so I'm going to rely heavily on them today.  I'm only going to
use one indicator, Stochastics for our discussion today.  That
doesn't mean I don't use others as well, but I think they will
be most useful for our purposes here today.  Most of the time, I
tend to rely on the (10,5,3) settings, as it achieves a good
balance between filtering out the noise, while at the same time
giving me good responsiveness to trend changes.  To keep our
discussion simple, let's just focus on the S&P 500 (SPX.X).

Daily/Weekly Charts of the S&P 500




As you can see in the charts above, the weekly timeframe gives
the appearance of a bottom being formed in the SPX, and the daily
view is giving an early hint of a recovery.  We know that the
catalyst for the rebound from last week's lows is a combination
of a relaxation of war fears, along with the necessity to work
off what had become a severe oversold condition.  That oversold
condition has been significantly relieved over the past few days,
but with the bullish percent of the SPX still up at 34%, it is
clear that there is still some significant downside risk at play.
There is nothing to suggest that the dominant downtrend has
changed, at least on the weekly chart, and the bulls will need
to be extremely cautious until that major resistance just over
860 can be broken with conviction.  That seems an unlikely
development without more clarity on the geopolitical front.

Should the market get a favorable resolution to what has become
the dominant topic of discussion of late (Iraq), then we really
could get another decent rally.  What it will likely take to
give us an early indication that the next rally is underway will
be for the daily Stochastics to fall back into oversold and turn
up without price breaking below the lows of last week.  But more
importantly, at the same time, we'll need the weekly Stochastics
to confirm the potential for a significant bullish move with an
emergence out of oversold territory.

But that just determines what I call the intermediate direction
for this market.  My intent here is to focus on the bigger
picture -- the dominant trend that I think will remain in force
for some time to come.  In order to view that trend, we really
need to zoom all the way out to a monthly chart.

Monthly Chart of the S&P 500




What we have here is a descending channel that has encapsulated
price action in the SPX for the past 3 years, and that trend
is not looking like it is about to change anytime soon.  The
only possible constructive sign is the possible bottom forming
in the monthly Stochastics oscillator.  The last time the
picture looked like this was in the fall of 2001, as the market
began to recover after the 9/11 tragedy.  And we did get a
decent rally from that point, which brought the Stochastics up
to the 50% level, but that's it.  Price action stalled right at
the upper channel line and then rolled over with force throughout
last year.  If price action breaks below the center-line of the
channel (near 800), then we are faced with the very real risk
of visiting the bottom of that channel again.  Such a breakdown
will more than likely have the monthly Stochastics falling into
oversold and setting up a strong rebound, once they emerge back
above the oversold region.

Believe it or not, I don't see that as the most likely outcome
this time around.  I think we'll actually rebound and challenge
that upper channel line.  But I think that test will fail with
Stochastics rolling near (or below) the 50% level again.  It's
the culmination of that downdraft towards the end of the year
that I think has the potential to provide a really powerful end
of year rally.  As you can see, it will have to be a powerful
rally to provide a positive close to the year, as it will have
to break above the top of that descending channel to get the job
done.  We started the year with the SPX trading near the 880
level and by the end of 2003, the top of the channel will have
fallen to about 750.  Either the SPX breaks out of the channel
to the upside or we're going to have an uglier 2003 than even I
want to contemplate.

My intent here today isn't to predict where we're going, or
paint a dire picture of a possible worst-case scenario.  Rather,
as the title "Perspective" indicates, I wanted to provide a
reminder (to myself as much as you) that we must keep in mind
the BIG picture if we are to stay on the right side of the
dominant trend.  If you want to really have some fun, look
through some of your favorite long-term stock holdings in this
manner.  We are all accustomed to looking at the daily and
weekly charts, but I think we all too often neglect to view the
really long-term picture.  I think you'll find it interesting
how some of those stocks that look good on the shorter-term
charts lose a lot of their lustre (in a bear market) when viewed
on the monthly charts.  Find a stock that looks good on all
three time frames, and odds are you've got a real winner for
the long-term.

Questions are always welcome!

Mark


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


***********************
SWING TRADER GAME PLANS
***********************

Empty Tank

Was that confirmation that the rally ran out of gas?  It
certainly seemed so for most of the day.  We slowly stair stepped
down on yet another low volume day. After breaking down below Dow
8000, we drifted lower with a series of lower lows and lower
highs.   However, in the last hour of trading, the market caught
fire making up much of the previous triple digit loss.   The most
noticeable factor in the rally however, was where it ran out of
steam.


To read the rest of the Swing Trader Game Plan Click here:
http://www.OptionInvestor.com/itrader/indexes/swing.asp


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


*******************
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                Wednesday 02-19-2003
Copyright 2003, All rights reserved.                        2 of 2
Redistribution in any form strictly prohibited.


In Section Two:

Stop Loss Updates: None
Dropped Calls: None
Dropped Puts: None
Play of the Day: Call - AMGN
Spreads, Combinations & Premium-Selling Plays: A Brief "Bear-Market" Bounce?

Updated on the site tonight:
Market Posture: Pivotal Levels
Market Watch: Bucking the Trend


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


*****************
STOP-LOSS UPDATES
*****************

None


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

None


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

None


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


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

AMGN – Amgen, Inc. $52.60 (+0.51 last week)

Company Summary:
The biggest of the Biotech big guns, AMGN makes and markets
therapeutic products for hematology, oncology, bone and
inflammatory disorders, as well as neuroendocrine and
neurodegenerative diseases.  Anti-anemia drug Epogen and immune
system stimulator Neupogen account for about 95% of sales.  Its
Infergen has been commercialized as a treatment for hepatitis C,
and Stemgen is approved for stem cell therapy in Australia,
Canada, and New Zealand.  The company has a strong pipeline of
new drugs in various stages of development as well as research
and marketing alliances with Hoffman-La-Roche and
Johnson & Johnson.

Most Recent Write-Up:
Continuing its rebound from the
ascending trendline (now at $51.65) that began with the September
lows, AMGN dragged the Biotechnology index (BTK.X) higher
throughout the day on Tuesday.  If this is a reversal for the
BTK, it looks like AMGN is going to lead the way, and the
critical test will be at the $54 resistance level, which turned
back the bulls last week.  The BTK did manage to close just above
the 10-dma for the first time in over a month and that is
definitely a positive sign.  But there is still some stiff
resistance to contend with in the $327-330 area before we'll
know if it is truly a trend change in progress.  AMGN is looking
much stronger than the BTK, after the gains of the past two
days, and the bulls are likely to challenge that $54 level
tomorrow, market permitting.  Traders that took advantage of
last week's weakness to enter the play are looking good tonight,
while those still waiting on the sidelines can either enter on a
pullback near the $52.50 support level or on a breakout over
$54.  If entering on a breakout, look for confirmation from the
BTK in the form of a push through the $330 level.  Stops should
now be raised to $51, just below last week's low.

Why This Is Our Play of the Day:

It seems like forever that we've been waiting for AMGN to finally
break through the $54 barrier and give us a new buy signal.  The
fact that it did so on a day when the broader markets reversed
recent gains and headed lower is even more impressive. We noted
the resistance in the BTK in the 327-330 range, and that is
precisely where it failed today, at a high of 329.58, before
falling back to a close of 324.36.  Granted, the move in the
index does not confirm the move higher in AMGN and conservative
traders may want to hang out on the sidelines until it does. On
the other hand, AMGN continues its strong uptrend and with the
new buy signal only underscores the bullishness of the stock,
which has a firm rising support trend line since the beginning of
November.  Because it was unable to hold the move above $54 on a
closing basis and the broader markets may still prove an anchor
to any bullish plays, we would suggest new entries on a move over
$54.25, so as not to swim against the tide if that tide becomes
too strong. While we are still listing a February call for those
already in the play, we would recommend a move out to March or
April for new entries.

*** February contracts expire this week ***

BUY CALL FEB-50 AMQ-BJ OI=11310 at $4.10 SL=2.05
BUY CALL MAR-50*AMQ-CJ OI= 3657 at $5.00 SL=2.50
BUY CALL MAR-55 YAA-CK OI=22967 at $1.75 SL=0.90
BUY CALL APR-55 YAA-DK OI=30363 at $2.70 SL=1.35

Average Daily Volume = 12.6 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
**************************************************************


*********************************************
SPREADS, COMBINATIONS & PREMIUM-SELLING PLAYS
*********************************************

A Brief "Bear-Market" Bounce?
By Ray Cummins

The major equity averages retreated Wednesday after two straight
sessions of bullish activity as doubts emerged about the recent
buying binge in stocks.

The Dow Jones Industrial Average slid 40 points to 8,000 amid
weakness in Alcoa (NYSE:AA), General Motors (NYSE:GM), Hewlett
Packard (NYSE:HPQ), International Paper (NYSE:IP), Microsoft
(NASDAQ:MSFT), SBC Communications (NYSE:SBC), and Walt Disney
(NYSE:DIS).  The NASDAQ Composite fared slightly worse, down 12
points to 1,334 after an early rally in semiconductor shares
failed to inspire technology investors.  The broader S&P 500
index lost 6 points to 845 with the worst selling pressure in
steel and mining, radio broadcasting, automotive parts retail,
and water utility stocks.  Gold was resilient after almost a
week of declines.  Breadth was negative with losers outpacing
gainers roughly 3 to 2 on both exchanges.  Trading volume was
relatively light with 1.07 billion on shares changing hands on
the New York Stock Exchange and 1.16 billion shares in play on
the NASDAQ.  In the bond market, prices edged higher as stocks
slumped.  The 10-year note was up 17/32 to yield 3.88% while
the yield on the 30-year treasury ended at 4.81%.

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

SUMMARY OF CURRENT POSITIONS - AS OF 2/18/03

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

The following summary is a reasonable account of the positions
previously offered in this section.  However, no representation
is being made as to the actual performance of a position and in
fact, there are frequently large differences between the summary
results and those of our subscribers, due to the variety of ways
in which each play can be opened, closed, and/or adjusted.  In
addition, the summary might not be completely representative of
the manner in which the average trader would react to changing
conditions in a position and to the options market in general.
The editor of this section does not take actual positions in any
published plays and the summary comments are simply a service to
help new traders understand when positions might be opened and
closed.  In most cases, actions taken based on the commentary
would be far too late to be effective, thus it is not intended
as a substitute for personal trade management nor does it in
any way replace your duty to diligently monitor and manage the
positions in your portfolio.


MONTHLY YIELD FOR UNCOVERED OPTIONS: MAXIMUM & SIMPLE

The Maximum Yield (listed in the summary and with new option
selling plays) is the greatest possible profit available in the
position.  This amount, expressed as a percentage, is based on
the initial margin requirement as determined by the Board of
Governors of the Federal Reserve, the U.S. options markets and
other self-regulatory organizations.  Although increased margin
requirements may be imposed either generally or in individual
cases by various brokerage firms, our calculations use the widely
accepted margin formulas from the Chicago Board Options Exchange.
The "Simple Yield" is based on the cost of the underlying issue
(in the event of assignment), including the premium from the sold
option, thus it reflects the maximum potential loss in the trade.


Naked Puts

Stock  Strike Strike  Cost Current   Gain    Max   Simple
Symbol  Month  Price Basis  Price   (Loss)  Yield  Yield

ASA      FEB    35   34.45  37.50   $0.55   4.44%  1.60%
COF      FEB    25   24.35  32.10   $0.65   7.31%  2.67%
IGEN     FEB    35   34.05  37.91   $0.95   8.27%  2.79%
INVN     FEB    22   22.05  23.30   $0.45   6.32%  2.04%
PHM      FEB    45   44.05  52.94   $0.95   5.39%  2.16%
AMGN     FEB    48   46.30  53.62   $1.20   5.40%  2.59%
CEPH     FEB    45   44.15  51.73   $0.85   5.04%  1.93%
AMGN     FEB    48   46.90  53.62   $0.60   3.66%  1.28%
AU       FEB    30   29.55  32.80   $0.45   4.94%  1.52%
CEPH     FEB    45   44.25  51.73   $0.75   5.18%  1.69%
SYMC     FEB    40   39.45  46.37   $0.55   4.22%  1.39%
COP      FEB    45   44.45  49.27   $0.55   4.35%  1.24%
CYMI     FEB    30   29.20  33.16   $0.80   9.95%  2.74%
DISH     FEB    22   22.20  26.33   $0.30   5.19%  1.35%
FTE      FEB    22   22.20  25.65   $0.30   5.86%  1.35%
MERQ     FEB    30   29.75  35.45   $0.30   5.03%  1.01%
MUR      FEB    37   37.10  42.87   $0.40   4.12%  1.08%
QCOM     FEB    35   34.40  35.39   $0.60   6.20%  1.74%
AVCT     FEB    25   24.75  27.45   $0.25   5.40%  1.01%
FTE      FEB    22   22.20  25.65   $0.30   7.60%  1.35%
MERQ     FEB    30   29.70  35.45   $0.30   6.16%  1.01%
PTEN     FEB    30   29.65  33.25   $0.35   6.04%  1.18%
ANF      MAR    25   24.40  27.82   $0.60   5.97%  2.46%
CLX      MAR    40   39.00  42.24   $1.00   5.01%  2.56%
IGEN     FEB    35   34.70  37.91   $0.35   9.70%  1.01%
OTEX     MAR    25   24.50  28.29   $0.50   4.97%  2.04%
SYMC     MAR    40   39.15  46.37   $0.85   5.10%  2.17%
VIP      MAR    30   29.40  33.71   $0.60   4.74%  2.04%

As noted in last week's summary, losing positions in Accredo
Health (NASDAQ:ACDO) and Biosite (NASDAQ:BSTE), as well as
the (profitable) position in Genzyme General (NASDAQ:GENZ),
have been previously closed.  Cymer (NASDAQ:CYMI) and Capital
One (NYSE:COF) remain on the "early exit" watch-list.


Naked Calls

Stock  Strike Strike  Cost   Current  Gain    Max   Simple
Symbol Month  Price   Basis  Price   (Loss)  Yield  Yield

EXPE     FEB    75    76.25  63.43   $1.25   6.84%  1.64%
MBG      FEB    30    30.65  25.69   $0.65   6.68%  2.12%
QCOM     FEB    42    43.05  35.39   $0.55   5.07%  1.28%
CCMP     FEB    60    61.15  45.64   $1.15   6.10%  1.88%
KLAC     FEB    45    45.80  35.11   $0.80   6.83%  1.75%
LLTC     FEB    32    33.25  29.86   $0.75   6.68%  2.26%
QLGC     FEB    47    48.40  35.77   $0.90   6.19%  1.86%
CDWC     FEB    50    50.55  44.88   $0.55   4.59%  1.09%
NVLS     FEB    37    37.85  30.38   $0.35   5.41%  0.92%
EXPE     FEB    70    70.45  63.43   $0.45   3.20%  0.64%
ZBRA     FEB    60    60.75  59.99   $0.75   5.77%  1.23%
CTSH     FEB    70    70.65  68.00   $0.65   7.91%  0.92%
KLAC     FEB    37    37.75  35.11   $0.25   5.49%  0.66%
NVLS     FEB    32    32.75  30.38   $0.25   5.96%  0.76%
BGEN     FEB    40    40.30  38.88   $0.30   7.70%  0.74%
ESRX     MAR    55    55.70  50.26   $0.70   5.07%  1.26%
GM       MAR    37    38.10  34.46   $0.60   4.60%  1.57%
VIA      MAR    40    40.95  38.67   $0.95   6.44%  2.32%

As noted last week, the more aggressive position ($65 call)
in Cognizant Technologies (NASDAQ:CTSH) was closed to limit
losses.


Put-Credit Spreads

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

FRX     53.03  49.00  FEB   45  47  0.00  47.50  $0.00   Open
SLM    106.71 107.00  FEB   90  95  0.50  94.50  $0.50   Open
AGN     60.51  60.89  FEB   50  55  0.50  54.50  $0.50   Open
BRL     77.63  76.08  FEB   65  70  0.40  69.60  $0.40   Open
FIC     44.63  47.55  FEB   35  40  0.45  39.55  $0.45   Open
AET     44.21  42.10  FEB   35  40  0.50  39.50  $0.50   Open
BR      42.71  44.65  FEB   38  40  0.25  39.75  $0.25   Open
MMM    127.50 126.61  FEB  115 120  0.55 119.45  $0.55   Open
BLL     52.73  53.65  FEB   45  50  0.40  49.60  $0.40   Open
EBAY    74.93  76.49  FEB   65  70  0.55  69.45  $0.55   Open
BHE     34.68  35.48  MAR   25  30  0.60  29.40  $0.60   Open
GYI     30.85  29.00  FEB   25  30  0.60  29.40 ($0.40) Closed
MUR     42.63  42.87  FEB   37  40  0.25  39.75  $0.25   Open
PRX     33.67  34.80  MAR   25  30  0.40  29.60  $0.40   Open
SLM    105.54 107.00  MAR   90  95  0.45  94.55  $0.45   Open

As previously noted, P.F.Chang's (NASDAQ:PFCB) close below the
sold strike at $35 signaled our exit in the losing position.
Getty Images (NASDAQ:GYI) also became a candidate for early exit
on the close below $29.50.


Call-Credit Spreads

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

HET    37.47   32.35  FEB   42  40  0.40  40.40  $0.40   Open
PHA    42.00   40.35  FEB   50  45  0.60  45.60  $0.60   Open
ZBRA   57.32   59.99  FEB   70  65  0.50  65.50  $0.50   Open
ATK    59.65   50.17  FEB   70  65  0.50  65.50  $0.50   Open
GS     73.51   68.00  FEB   85  80  0.40  80.40  $0.40   Open
PDX    34.40   27.63  FEB   45  40  0.65  40.65  $0.65   Open
ABK    55.74   50.19  FEB   65  60  0.50  60.50  $0.50   Open
FITB   56.49   53.72  FEB   65  60  0.50  60.50  $0.50   Open
GM     37.28   34.46  FEB   42  40  0.25  40.25  $0.25   Open
WB     35.72   35.65  FEB   40  37  0.25  37.75  $0.25   Open
XL     75.92   72.09  FEB   85  80  0.50  80.50  $0.50   Open
FNM    64.10   65.10  MAR   75  70  0.55  70.55  $0.55   Open
ONE    35.65   36.79  FEB   40  37  0.20  37.70  $0.20   Open
TOT    67.33   66.65  FEB   75  70  0.25  70.25  $0.25   Open
CCU    36.70   37.82  MAR   45  40  0.75  40.75  $0.75   Open
FDX    50.87   52.16  MAR   60  55  0.55  55.55  $0.55   Open
UTX    60.50   61.89  MAR   70  65  0.60  65.60  $0.60   Open

Although currently profitable, Harmon Electronics (NYSE:HAR)
was closed when the issue moved above the sold strike at $60.
Total Fina (NYSE:TOT) gapped lower after it was selected, thus
a credit near the target was not available.


Calendar Spreads (Reader's Request)

Stock   Pick   Last     Long     Short    Current   Max     Play
Symbol  Price  Price   Option    Option    Debit   Value   Status

APA	  60.74  63.09   APR-65C   FEB-65C   1.35    2.00     Open
STJ	  43.69  45.00   APR-45C   FEB-45C   1.20    1.60     Open

Apache Oil (NYSE:APA) and St. Jude Medical (NYSE:STJ) have both
offered favorable "early-exit" profits.


Credit Strangles

No Open Positions


Synthetic Positions:

No Open Positions

Questions & comments on spreads/combos to Contact Support
***************

NEW POSITIONS

This following group of plays is simply a list of candidates to
supplement your search for profitable trading positions.  As with
any new investment, you must decide if the selections meet your
criteria for potential plays.  Only you can know what strategies
are suitable for your personal skill level, risk-reward tolerance
and portfolio outlook.  In addition, we recommend that you avoid
any trading techniques in which you are not completely comfortable
with the potential capital loss, the necessary adjustments, and
the common entry-exit strategies.  The positions with "*" will be
included in the weekly summary.  Those with "TS" (Target-Shoot)
are below our minimum monthly return, but may offer a favorable
entry price with a limit order, due to the daily volatility of
the underlying issue.

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

BULLISH PLAYS - NAKED PUTS

All of these issues have robust option premiums and relatively
favorable technical indications.  However, current news and market
sentiment will have an effect on these stocks, so review each play
thoroughly and make your own decision about its future outcome.

WARNING: THE RISK IN SELLING UNCOVERED OPTIONS IS SUBSTANTIAL!

The sale of uncovered puts entails considerable financial risk,
far more than the initial margin or collateral required to open
a position.  The maximum financial obligation for the sale of a
naked put is the strike price (of the underlying stock) that is
sold.  Although this obligation is reduced by the premium from
the sale of the option, a writer of puts should have the cash or
collateral equivalent of the sold strike price in reserve at all
times.  In addition, there is one very important rule when using
this strategy: Don't sell puts on stocks that you don't want to
own!  Why?  Because stocks occasionally experience catastrophic
declines, exponentially increasing the margin maintenance and
possibly causing a devastating shortfall in your portfolio.  It
is also important that you consider using trading stops on naked
option positions to help limit losses when a stock's price falls.
Many professional traders suggest closing the position when the
underlying share value moves below the sold strike, or using a
"buy-to-close" stop order at a price that is no more than twice
the original premium received from the sold option.

***************
ANF - Abercrombie & Fitch  $29.57  *** Bullish Retailer! ***

Abercrombie & Fitch Company (NYSE:ANF), through its subsidiaries
as specialty retailers, operates stores selling casual apparel,
personal care and other accessories for men, women and kids under
the Abercrombie & Fitch, abercrombie and Hollister Co. brands.  As
of February 2, 2002, the company operated 491 stores in the United
States.  A&F's stores and point-of-sale marketing are designed to
convey the principal elements and personality of each brand.  The
store design, furniture, fixtures and music are carefully planned
and coordinated to create a shopping experience that is consistent
with the A&F lifestyle.

ANF - Abercrombie & Fitch  $29.57

PLAY (sell naked put):

Action    Month &   Option    Open    Last  Cost    Max.  Simple
Req'd     Strike    Symbol    Int.    Price Basis  Yield  Yield

SELL PUT  MAR 25    ANF OE     535    0.35  24.65   4.7%   1.4% *
SELL PUT  MAR 27.5  ANF OY     478    0.90  26.60   8.6%   3.4%
SELL PUT  MAR 30    ANF OF      73    1.95  28.05  13.9%   7.0%


**************
AVCT - Avocent  $26.95  *** Solid Quarterly Earnings! ***

Avocent Corporation (NASDAQ:AVCT), together with its wholly owned
subsidiaries, designs, manufactures and sells analog and digital
KVM (keyboard, video and mouse) switching systems, as well as
serial connectivity devices, extension and remote access products
and also display products for the computer industry.  The firm's
unique switching and connectivity solutions provide information
technology managers with access and control of multiple servers
and network data centers from any location.

AVCT - Avocent  $26.95

PLAY (sell naked put):

Action    Month &   Option    Open    Last  Cost    Max.  Simple
Req'd     Strike    Symbol    Int.    Price Basis  Yield  Yield

SELL PUT  MAR 22.5  QVX OX     50     0.30  22.20   4.6%   1.4% *
SELL PUT  MAR 25    QVX OE     61     0.80  24.20   8.4%   3.3%


**************
DISH - EchoStar  $26.48  *** Testing Recent Highs! ***

EchoStar Communications (NASDAQ:DISH) operates through two major
business units, the DISH Network and EchoStar Technologies.  The
DISH Network offers a direct broadcast satellite subscription TV
service in the United States with almost 7 million DISH Network
subscribers.  EchoStar Technologies Corporation is engaged in the
design, development, distribution and sale of DBS set-top boxes,
antennae and other digital equipment for the DISH Network and the
design, development and distribution of similar equipment for a
range of international satellite service providers.

DISH - EchoStar  $26.48

PLAY (sell naked put):

Action    Month &   Option    Open    Last  Cost    Max.  Simple
Req'd     Strike    Symbol    Int.    Price Basis  Yield  Yield

SELL PUT  MAR 22.5  UAB OX    5,513   0.50  22.00   7.1%   2.3% *
SELL PUT  MAR 25    UAB OE    1,935   1.00  24.00  10.0%   4.2%


**************
IGEN - IGEN International  $39.44  *** On The Rebound! ***

IGEN International develops and markets products that incorporate
its proprietary electrochemiluminescence (ORIGEN) technology,
which permits the detection and measurement of various biological
substances.  ORIGEN provides a combination of speed, sensitivity,
flexibility and throughput in a single technology platform.  The
product is incorporated into instrument systems and other related
consumable reagents, and IGEN also offers assay development and
services used to perform analytical testing.  Products based on
ORIGEN technology address the Life Sciences, Clinical Testing and
Industrial Testing worldwide markets.

IGEN - IGEN International  $39.44

PLAY (sell naked put):

Action    Month &  Option    Open    Last  Cost    Max.  Simple
Req'd     Strike   Symbol    Int.    Price Basis  Yield  Yield

SELL PUT  MAR 30   GQ OF     1,074   0.50  29.50   6.0%   1.7% *
SELL PUT  MAR 35   GQ OG     1,747   1.50  33.50  11.8%   4.5%
SELL PUT  MAR 40   GQ OH     1,271   3.50  36.50  17.9%   9.6%


**************
PTEN - Patterson-UTI Energy  $32.94  *** Oil Service Sector ***

Patterson-UTI Energy (NASDAQ:PTEN) is an operator of land-based
drilling rigs in North America.  Formed in 1978 and reincorporated
in 1993, the company focuses its contract drilling operations in
Texas, New Mexico, Oklahoma, Louisiana, Mississippi, Utah and
Western Canada (Alberta, British Columbia and Saskatchewan).
Patterson-UTI's operates in three industry segments: contract
drilling, which the company markets to major and independent oil
and natural gas producers and operators; drilling and completion
fluids services, which provides drilling fluids, completion fluids
and related services to oil and natural gas producers, and pressure
pumping services, which provides pressure-pumping services in the
Appalachian Basin.

PTEN - Patterson-UTI Energy  $32.94

PLAY (sell naked put):

Action    Month &   Option    Open    Last  Cost    Max.  Simple
Req'd     Strike    Symbol    Int.    Price Basis  Yield  Yield

SELL PUT  MAR 27.5  NZQ OY      33    0.25  27.25   3.2%   0.9% TS
SELL PUT  MAR 30    NZQ OF     586    0.55  29.45   5.2%   1.9% *
SELL PUT  MAR 32.5  NZQ OZ     216    1.40  31.10  10.0%   4.5%


**************
RYL - The Ryland Group  $42.40  *** CFSB Upgrade! ***

The Ryland Group (NYSE:RYL) is a homebuilder and mortgage-finance
company.  The company has built more than 190,000 homes during its
34-year history.  Ryland homes are available in more than 260 new
communities in 21 markets across the United States.  In addition,
the Ryland Mortgage company has provided mortgage financing and
related services for more than 165,000 homebuyers.  The company's
operations span all the significant aspects of the home-buying
process, from design, construction and sale to mortgage financing,
title insurance, settlement, escrow and homeowners insurance.

RYL - The Ryland Group  $42.40

PLAY (sell naked put):

Action    Month &   Option    Open    Last  Cost    Max.  Simple
Req'd     Strike    Symbol    Int.    Price Basis  Yield  Yield

SELL PUT  MAR 37.5  RYL OU      59    0.50  37.00   4.0%   1.4% *
SELL PUT  MAR 40    RYL OH     135    0.95  39.05   6.2%   2.4%
SELL PUT  MAR 42.5  RYL OV      55    1.90  40.60  10.2%   4.7%


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

BULLISH PLAYS - CREDIT SPREADS

These candidates are based on the underlying issue's technical
history or trend.  The probability of profit in these positions
may also be higher than other plays in the same strategy, due to
small disparities in option pricing however, each play should be
evaluated for portfolio suitability and reviewed with regard to
your strategic approach and trading style.

***************
BRL - Barr Laboratories  $77.21  *** 3-for-2 Split Announced! ***

Barr Laboratories (NYSE:BRL) is a specialty pharmaceutical company
primarily engaged in the development, manufacture and marketing of
generic and proprietary prescription pharmaceuticals.  The company
manufactures and distributes more than 100 different dosage forms
and strengths of pharmaceutical products in core therapeutic
categories, including oncology, female healthcare (including
hormone replacement and oral contraceptives), cardiovascular, anti
infective and psychotherapeutics.  In addition, the company has a
proprietary, novel vaginal ring drug delivery system it is using
to develop products intended to address a variety of female health
issues and unmet medical needs.  The company is planning a 3-for-2
stock split on 3/17/03.

BRL - Barr Laboratories  $77.21

PLAY (very conservative - bullish/credit spread):

BUY  PUT  MAR-65.00  BRL-OM  OI=253  A=$0.45
SELL PUT  MAR-70.00  BRL-ON  OI=248  B=$0.90
INITIAL NET-CREDIT TARGET=$0.50-$0.60
POTENTIAL PROFIT(max)=11% B/E=$69.50


**************
CAT - Caterpillar  $45.95  *** UBS Upgrade = Rally! ***

Caterpillar (NYSE:CAT) manufactures and markets construction,
mining, agricultural and forest machinery; engines for on-highway
use and locomotives, as well as for electrical power generation
systems and other applications, and provides financing for the
purchase and lease of its equipment.  The company operates three
principal lines of business: machinery, engines and financial
products.  The company designs, manufactures, markets, finances
and provides support for its Caterpillar, Cat, Solar, Perkins, FG
Wilson, MaK, and Olympian brands.

CAT - Caterpillar  $45.95

PLAY (conservative - bullish/credit spread):

BUY  PUT  MAR-40.00  CAT-OH  OI=744   A=$0.30
SELL PUT  MAR-42.50  CAT-OV  OI=1064  B=$0.55
INITIAL NET-CREDIT TARGET=$0.25-$0.30
POTENTIAL PROFIT(max)=11% B/E=$42.25


**************
EBAY - eBay Inc.  $76.99  *** New "All-Time" High! ***

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.

EBAY - eBay Inc.  $76.99

PLAY (less conservative - bullish/credit spread):

BUY  PUT  MAR-65.00  QXB-OM  OI=4312   A=$0.40
SELL PUT  MAR-70.00  QXB-ON  OI=11160  B=$0.90
INITIAL NET-CREDIT TARGET=$0.55-$0.70
POTENTIAL PROFIT(max)=12% B/E=$69.45


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

BEARISH PLAYS - NAKED CALLS

Based on analysis of option pricing and the underlying stock's
technical background, these positions meet our fundamental
criteria for bearish "premium-selling" strategies.  Each issue
has robust option premiums, a well-defined resistance area and
a high probability of remaining below the target strike prices.
As with any recommendations, these positions should be carefully
evaluated for portfolio suitability and reviewed with regard to
your strategic approach and personal trading style.

WARNING: THE RISK IN SELLING UNCOVERED OPTIONS IS SUBSTANTIAL!

The sale of uncovered calls entails considerable financial risk,
far more than the initial margin or collateral required to open
the position.  The maximum financial obligation for the sale of a
naked option is the strike price (of the underlying stock) that
is sold.  Although this obligation is reduced by the premium from
the sale of the option, a writer of options must have the cash or
collateral equivalent of the sold strike price in reserve at all
times.  The simple fact is: stocks often experience large price
swings, exponentially increasing the margin maintenance and very
possibly causing a devastating shortfall in your portfolio.  It
is also important that you consider using trading stops on naked
option positions to help limit losses when a stock price moves in
a volatile manner.  Many professional traders suggest closing the
position when the underlying share value moves beyond the sold
strike, or using a "buy-to-close" stop order at a price that is no
more than twice the original premium received from the sold option.

***************
CCMP - Cabot Microelectronics  $42.77  *** Big Down Day! ***

Cabot Microelectronics (NASDAQ:CCMP) is a global supplier of high
performance polishing slurries used in the manufacture of advanced
integrated circuit (IC) devices, within a process called chemical
mechanical planarization (CMP).  CMP is a polishing process used
by IC device manufacturers to planarize or flatten many of the
multiple layers of material that are built upon silicon wafers
and necessary in the production of advanced ICs.  Planarization is
a polishing process that levels, smoothes, and removes the excess
material from the surfaces of these layers.  CMP slurries are
liquid formulations that facilitate and enhance this polishing
process and generally contain engineered abrasives and proprietary
chemicals.  CMP enables IC device manufacturers to produce smaller,
faster and more complex IC devices with fewer defects.

CCMP - Cabot Microelectronics  $42.77

PLAY (sell naked call):

Action     Month &  Option    Open   Last  Cost    Max.   Simple
Req'd      Strike   Symbol    Int.   Price Basis  Yield   Yield

SELL CALL  MAR 50   UKR CJ    591    0.55  50.55   5.5%    1.1% *
SELL CALL  MAR 45   UKR CI    389    1.90  46.90  11.6%    4.1%


**************
KLAC - KLA Tencor  $34.65  *** Pure Premium Selling! ***

KLA-Tencor (NASDAQ:KLAC) is a supplier of process control and
yield management solutions for the semiconductor and related
microelectronics industries.  The company's large portfolio
of products, software, analysis, services and expertise is
designed to help integrated circuit manufacturers manage yield
throughout the entire wafer fabrication process, from research
and development to final mass production yield analysis.  The
company offers a broad spectrum of products and services that
are used by every major semiconductor manufacturer in the world.
These customers turn to the company for in-line wafer defect
monitoring; reticle and photomask defect inspection; CD SEM
metrology; wafer overlay; film and surface measurement; and
overall yield and fab-wide data analysis.

KLAC - KLA Tencor  $34.65

PLAY (sell naked call):

Action     Month &  Option    Open   Last  Cost    Max.   Simple
Req'd      Strike   Symbol    Int.   Price Basis  Yield   Yield

SELL CALL  MAR 40   KCQ CH   5,985   0.50  40.50   5.6%    1.2% *
SELL CALL  MAR 37.5 KCQ CU   4,048   1.00  38.50   8.4%    2.6%
SELL CALL  MAR 35   KCQ CG   6,409   2.00  37.00  13.1%    5.4%


**************
NVLS - Novellus Systems  $29.36  *** Chip Orders Down 10% ***

Novellus Systems (NASDAQ:NVLS) manufactures, sells and services
semiconductor processing equipment.  The company's products are
comprised primarily of advanced systems used to deposit thin
conductive and insulating films on semiconductor devices, as well
as equipment for preparing the device surface prior to these
deposition processes.  Novellus is a supplier of high productivity
deposition and surface preparation systems used in the fabrication
of integrated circuits.  Chemical Vapor Deposition systems employ
a chemical plasma to deposit all of the dielectric (insulating)
layers and certain of the metal (conductive) layers on the surface
of a semiconductor wafer.  Physical Vapor Deposition systems are
used to deposit conductive metal layers by sputtering metallic
atoms from the surface of a target source via high DC power.
Electrofill systems are used for depositing copper conductive
layers in a dual damascene design architecture using an aqueous
solution.

NVLS - Novellus Systems  $29.36

PLAY (sell naked call):

Action     Month &  Option    Open   Last  Cost    Max.   Simple
Req'd      Strike   Symbol    Int.   Price Basis  Yield   Yield

SELL CALL  MAR 35   NLQ CG   2,950   0.35  35.35   5.5%    1.0% *
SELL CALL  MAR 32.5 NLQ CZ   2,681   0.85  33.35   9.1%    2.5%
SELL CALL  MAR 30   NLQ CF   4,867   1.80  31.80  14.1%    5.7%


**************
QCOM - Qualcomm  $35.54  *** Wireless Inventory Glut! ***

Qualcomm (NASDAQ:QCOM) is a developer and supplier of code division
multiple access (CDMA)-based integrated circuits and system software
for wireless voice and data communications and global positioning
system (GPS) products.  Qualcomm offers complete system solutions,
including software and integrated circuits for wireless handsets and
infrastructure equipment.  This complete system solution approach
provides customers with advanced wireless technology and enhanced
component integration and interoperability, as well as reduced time
to market.

QCOM - Qualcomm  $35.54

PLAY (sell naked call):

Action     Month &  Option    Open   Last  Cost    Max.   Simple
Req'd      Strike   Symbol    Int.   Price Basis  Yield   Yield

SELL CALL  MAR 40   AAW CH   7,502   0.45  40.45   4.6%    1.1% *
SELL CALL  MAR 37.5 AAW CU   9,277   1.15  38.65   8.9%    3.0%
SELL CALL  MAR 35   AAW CG   3,671   2.30  37.30  13.9%    6.2%


**************
VZ - Verizon  $36.60  *** FCC Ruling Will Affect Baby Bells ***

Verizon Communications (NYSE:VZ) is one of the world's leading
providers of communications services.  Verizon companies are the
largest providers of wireline and wireless communications in the
United States, with 135.1 million access line equivalents and 30.3
million Verizon Wireless customers.  Verizon is also the largest
directory publisher in the world.  With more than $67 billion in
annual revenues and approximately 241,000 employees, Verizon's
global presence extends to more than 40 countries in the Americas,
Europe, Asia and the Pacific.

VZ - Verizon  $36.60

PLAY (sell naked call):

Action     Month &  Option    Open   Last  Cost    Max.   Simple
Req'd      Strike   Symbol    Int.   Price Basis  Yield   Yield

SELL CALL  MAR 40   VZ CH    7,055   0.55  40.55   4.7%    1.4% *
SELL CALL  MAR 37.5 VZ CU    3,986   1.50  39.00  10.0%    3.8%


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

BEARISH PLAYS - CREDIT SPREADS

All of these positions are favorable candidates for "bear-call"
credit spreads, based on the current price or trading range of
the underlying issue and its recent technical history or trend.
The probability of profit from these positions may be higher
than other plays in the same strategy, due to disparities in
option pricing.  However, current news and market sentiment will
have an effect on these issues, so review each play individually
and make your own decision about its future outcome.

***************
BGEN - Biogen  $38.16  *** Recovery Rally Fades ***

Biogen (NASDAQ:BGEN) is a biopharmaceutical company principally
engaged in the business of developing, manufacturing and marketing
drugs for human healthcare.  The firm derives revenues from sales
of its AVONEX (Interferon beta-1a) product for the treatment of
relapsing forms of multiple sclerosis (MS) and from royalties on
worldwide sales by its licensees of a number of products covered
under patents it controls.  In addition, Biogen has a significant
number of ongoing research programs and a pipeline of development
stage products, including AMEVIVE (alefacept), which is being
considered for approval by the United States FDA and regulatory
authorities in the European Union and Canada for the treatment of
moderate to severe psoriasis.

BGEN - Biogen  $38.16

PLAY (conservative - bearish/credit spread):

BUY  CALL  MAR-45.00  BGQ-CI  OI=307  A=$0.20
SELL CALL  MAR-42.50  BGQ-CV  OI=622  B=$0.45
INITIAL NET-CREDIT TARGET=$0.25-$0.30
POTENTIAL PROFIT(max)=11% B/E=$42.75


**************
RD - Royal Dutch Petroleum  $39.56  *** New Trading Range? ***

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.

RD - Royal Dutch Petroleum  $39.56

PLAY (conservative - bearish/credit spread):

BUY  CALL  MAR-45.00  RD-CI  OI=1570  A=$0.15
SELL CALL  MAR-42.50  RD-CV  OI=5852  B=$0.40
INITIAL NET-CREDIT TARGET=$0.25-$0.30
POTENTIAL PROFIT(max)=11% B/E=$42.75


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

SEE DISCLAIMER - SECTION 1

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


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

Pivotal Levels

To Read The Rest of The OptionInvestor.com Market Watch Click Here
http://www.OptionInvestor.com/marketposture/mp_021903.asp


************
MARKET WATCH
************

Bucking the Trend

To Read The Rest of The OptionInvestor.com Market Watch Click Here
http://members.OptionInvestor.com/watchlist/wl_021903.asp


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

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