Option Investor

Daily Newsletter, Wednesday, 03/19/2003

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The Option Investor Newsletter                Wednesday 03-19-2003
Copyright 2003, All rights reserved.                        1 of 2
Redistribution in any form strictly prohibited.

In Section One:

Wrap: Not So Calm Before the Storm
Futures Wrap: Overbought
Index Trader Wrap: Home on the Range
Weekly Fund Family Profile: The World Funds, Inc.
Options 101: So, You Want To Know The Future?

Updated on the site tonight:
Swing Trader Game Plan: Bulls Still In Charge

Posted online for subscribers at http://www.OptionInvestor.com
MARKET WRAP  (view in courier font for table alignment)
03-19-2003                   High    Low     Volume Advance/Decl
DJIA     8265.45 + 71.22  8277.64  8141.50   1706 mln  1086/585
NASDAQ   1397.07 -  3.48   1401.24 1378.57   1679 mln  712/924
S&P 100   444.84 +  4.46    445.48  437.72   totals   1798/1509
S&P 500   874.02 +  7.57    874.99  861.21
RUS 2000  368.51 +  0.51    368.56  365.10
DJ TRANS 2149.15 +  20.13   2151.01 2121.02
VIX        36.18 +  0.40     36.39   34.87
VIXN       48.20 +  0.18     49.51   47.62
Put/Call Ratio 0.74

Not So Calm Before the Storm
by Steve Price

With just hours to go before the deadline set by the U.S. for
Saddam Hussein to leave Iraq, or face military action, the
markets showed plenty of indecision early on. The techs found
sellers following Oracle's cautious guidance, while the Dow
headed higher, building on gains of the previous five sessions.
However, it wasn't long before war jitters took some shine off
the recent gains and bulls took some profits.

There have been may theories offered for the recent rise in the
markets.  I've heard that shorts began covering last week at the
conclusion of head and shoulders objectives and then
institutional money flowed in this week when war became imminent.
I've heard there was selling into the rallies overseas in case a
war does not go as quickly as some are predicting. I've heard
plenty of explanations, but it is interesting that with all the
reasons offered for movement, the recent movement continues to
find pivotal technical levels as support and resistance.

Granted, his morning's rally was fighting an uphill battle after
disappointing guidance accompanying Oracle's earnings release on
Tuesday night, but we did head into the green, stopping only at
levels that have continued to play a big part in the movement
over the past several months. We can conclude that the Dow, OEX
and SPX did form classic bearish head and shoulders formations
from October through January, resulting in a breakdown that
fulfilled their objectives last week. Our big bounce came when
the OEX and SPX hit their bearish objectives almost to the point.
Now that we have bounced much higher, we have run right into
bearish resistance on the point and figure charts.  Those charts
show bearish resistance in the Dow at 8300, SPX at 870 and OEX at
442.50 (on the 2.5 point box), while the OEX traditional chart
registers that resistance at 448.  Today's highs came in at Dow
8277, SPX 874.99 and OEX 445.48. We broke above that resistance
on a closing basis in the SPX and OEX and fully through it in the
OEX on the 2.5 point chart, although we are right up against it
on the traditional chart.  The SPX top at 874.99 came within 0.01
of a breakthrough.  The next box level is required for a complete
breakthrough, as can be seen on the chart below.

Daily Chart of the Dow

Point and Figure Chart of the SPX

The Nasdaq struggled to hold the achievement of the 1400 level it
made on Tuesday pretty much from the open.  After Oracle said
demand had softened near the end of the third quarter (fiscal)
due to anxiety over a war in Iraq, calling it a "wild card" for
customer demand, the reminder that the economy is still in
neutral weighed across most of the techs sectors.  What was also
a concern was that some of the profits that the company posted
were due to some outside issues, such as unusual cost of service
savings and currency translation to U.S. dollars and even the
estimate beat for the past quarter suddenly looks less
convincing.  In the afternoon rally that took the Dow, SPX and
OEX all to new highs, the COMP was still unable to hold its late
day test of 1400, eventually falling to 1397 on the close.

Chart of the COMP

In the area of conundrum, we got some results from Bear Stearns
that further muddy the equity waters.  Financial stocks are a
good place to start any rally - or any market drop.  BCS actually
seems to have found the best of both worlds.  It released
earnings that beat expectations, citing record profits from its
bond trading operations.  Those operations turned into a big
winner as investors fled the stock market and shifted back into
fixed income instruments. So if financial stocks are turning
profits on a market decline, will they lead us higher? Keep n eye
on the BKX, BIX and XBD as we get earnings tomorrow morning from
Goldman Sachs, Lehman and Morgan Stanley.  Those indices have all
bounced over the past week along with the broader markets, but
are within points of their 50-dmas, which coincide with
resistance from early and mid-February.

Speaking of bonds, it appears that much of last week's rally was
fueled by asset allocations between treasuries and stocks.
Watching yields, which are a good indicator for where stocks are
headed as they trade inversely to bonds (as bond prices rise, the
yields from the purchase of those bonds drops and vice versa),
also gave us a good indication of a possible market bottom last
week.   In fact, while the equities were testing July lows, and
the bond market was rallying with the cash flow out of equities
and into treasuries, yields had already dropped below July
levels.  The yields also took out their December and November
lows and headed toward October levels.  It was when the yield hit
the October low that the broad markets all bounced.  A look at
the weekly chart of the ten-year note index shows big reversal
off that level.  Now that we are on the upside, we are also
seeing some key levels tested by the yield. The five and ten year
yields both broke above their 50-dmas on Tuesday and then gapped
higher to start the day on Wednesday.  The early indications from
those 50-dma breaks are bullish. However, we are also entering
some heavy resistance on both yield charts that could be tough to
break.  That could indicate a reallocation back in the other
direction and should put bulls on alert.

Chart of the Ten Year Yield

One of the other indicators that I often use is the Market
Volatility Index (VIX). The VIX has been a reliable indicator of
market bounces and pullbacks at its extremes.  Readings of 40%
have indicated it is time for an equity bounce and readings of
34-35% have indicated it is time for a market pullback.  The last
decisive breakthrough of these levels came in January, when the
VIX was finding resistance at 35%, rather than support and
eventually took out that resistance on the head and shoulders
neckline break between Dow 8200 and 8300, depending on how you
draw the neckline (I have it at 8220).   We have now rallied all
the way back into that territory and once again the VIX is
testing 35%. If we do manage to breakthrough the recent bottom,
it will likely coincide with a move back above Dow 8300.  The
first close below 8300 was the domino that signaled a trip much
lower and a close back above it may signal a true reversal
higher.  However, note that a trade of 8350 will be required to
break through the bearish resistance line noted above on the
point and figure chart. What is interesting here is the
divergence in the VIX from the action in the equities.  Although
we saw a VIX decline early in the day, it was higher once again
by the close, in spite of late day gains in the equities. Usually
we see the opposite and it was the second time this week we've
seen this divergence. Obviously, there are plenty of institutions
holding up premium levels in the OEX that are still concerned
about the downside possibilities that a messy war could bring, or
the possibility that the rally is not for real. While the VIX is
at the low end of the recent range, it is still historically high
and if the big boys really thought we were headed higher, I would
expect them to take advantage of the high levels of premium by
shorting them.

Chart of the VIX

The crude oil futures, which have also been a reliable indicator
of equity action, with a consistent inverse relationship,
continued to drop further again today.  Certainly if the oil
fields in Iraq began flaming, we could see a reversal in that
market, where the per barrel price has fallen 21% since March 12.
I heard an analyst yesterday commenting that a drop in the price
of oil from $31 per barrel to $24 could amount to a 1% increase
in GDP from the fuel cost savings to Americans and U.S.
businesses.  That would seem to support the consistency we have
seen in the inverse relationship between the equities and oil

Let's see, what have I left out?  Oh, yes, the bullish percents.
The bullish percents - the number of stocks giving point and
figure buy signals in a particular index - have all been in free
fall mode since the middle of January. That is until the past
couple of days.  Each prior rebound attempt was not quite enough
to turn these indicators higher and they remained in oversold
territory in the Dow, SPX and OEX, with the NDX just making it to
the oversold line at 30%.  In the past couple of sessions we have
finally seen a rebound that was strong enough to reverse some of
the indicators. The Dow bounced from a reading of 10% all the way
up to a reading of 20%.  The NDX bounced from 30% to 44% and the
SPX which tends to lag because of the amount of stocks in the
index, has now bounced from 28% to 34%.   Those bounces should be
a warning sign to bears and may indicate the beginning of a move
higher, rather than an exhaustion of a bear market rally.   While
I am not ready to declare the bear market over, since these also
reversed up on other bear market rallies, I am conscious of the
fact that this bear market rally may still have some legs left in
it.  The rebounds from July and October took these percents up to
60% and 72% in the Dow; 50% and 82% in the NDX; and 58% and 68%
in the SPX.  So there is plenty of upside to this indicator if we
are able to continue the breakout. Once all of these reached
oversold territory, the risks began to shift out of the bears
favor and now that they are on their way up, they are no where
close to overbought at 70%.

Bullish Percent of the Dow

So we now have a number of technical indicators all converging at
the current levels.  The VIX, the bond market, the bearish
resistance lines, the head and shoulders breakdown levels - all
testing just how much strength the bulls have left after a gain
of almost 900 Dow points in 6 sessions. Combine that with the
possible start of a war in the next day or two and it appears
that the spring is wound awfully tight right now.  We saw bulls
in charge in the major indices, but the techs unable to overcome
the Oracle news. If the U.S. launches an attack tonight after the
8 p.m. deadline passes we should have a clearer picture of just
whether the pre-war rally will stick.  So far, it appears we will
get a quick war - that is if today's unsolicited surrender of 17
Iraqi soldiers is any indication.  There were also reports that
the U.S. had already conducted air strikes on Iraq artillery
that boosted the market late in the day. If the rally does
stick, then traders who have been on the sidelines may want to go
long if we complete those bearish resistance breakthroughs and a
move above resistance in the yields I highlighted above.  If we
fade, then a higher level of support that doesn't reverse the
bullish percents back down may also be a long entry point.
However, defining a pullback will be tough and we have to
remember that we have yet to see an economic recovery. After six
straight up days in the Dow there is bound to be a pullback at
some point, but wait for that pullback to show some support
before jumping in long. If the rally isn't for real, traders may
find themselves picking one bottom after another, all the way
back to last week's levels Trade what you see, and keep your risk
level comfortable.



Wednesday, March 19, 2003
By Vlada Raicevic

Daily Settlement Numbers 4:15pm ET

Contract	Last	Net	High	Low

Dow	8265.45	+71.22	8277.64	8141.50
YM 03M	8236	+66	8256	8116

Nas 100	1074.98	-7.21	1083.11	1058.81
NQ 03M	1075.50	-12	1097.50	1062

S&P 500	874.02	+7.57	874.99	861.21
ES 03M	872.75	+6.50	874.50	860.25

Daily Pivots

Contract	S2	S1	Pivot	R1	R2
YM 03M	8071	8166	8211	8306	8351
NQ 03M	1042.25	1058	1077.75	1093.50	1113.25
ES 03M	855.81	865.63	870.06	879.88	884.31

The last few days I’ve been keeping an open mind about the recent
rally.  Daily charts continued to be bullish even though shorter
term charts were getting overbought and straining under bearish
divergences.  Now, as we look at the daily charts we see that they
too, have reached overbought status.  The term overbought tends to
be thrown around quite a bit, and the meaning of it has been
watered down a bit.  To be overbought means to reach an extreme of
one particular sentiment.  However, just like some favorite uncle
can turn beet red and puffy from too much brandy, there is no
point in calling it a night until his drinking causes him to fall
over.  When you think he can’t swallow one more glass, he fools
everyone and fills it up again.

So, saying that we’ve reached overbought doesn’t mean we stop
going up, it just means that conservative traders are moving out
of their longs into a neutral position because of the possibility
of a pullback.  The depth of that pullback is the unknown.

Today’s trading was mostly rangebound, moving back and forth
across the Pivot at 865, to find resistance at the halfway area
between Pivot and R1 at 869, and then finding support halfway
between Pivot and S1 at 861.  The end of the day saw a bullish
surge and subsequent failure at the R1, 874 area.  To my eyes,
that last push upward lacked a certain attitude of reckless
bullish abandon that we’ve been seeing lately.  If I were to read
into it I would say that all the war rally talk, and strong
bullishness has started to take its toll and that the last gasp
today was exhaustion buying.

The ES daily: Stochastic is higher than it was at anytime during
the Oct-Jan run.  The same is true for CCI and RSI.  In fact,
CCI(32) hasn’t been this high since March 2002.  We are also
against very strong resistance at SPX 875, and strong resistance
together with overbought conditions are a good mix for selling.
However, we are not in anything resembling a normal market, or a
normal world in general.  It is fine and good to analyze past
technicals in these charts to current levels, but we must remind
ourselves that as crazy as the markets normally are, they can
become absolutely insane when extreme pressure is exerted through
outside influences like war.

How ES traded on the Pivot Chart:

ES 270 Minute All Sessions Chart:
Note the divergences, Macd trendline break, and falling off of
buying on the ADX, however, again there was almost no selling,
although D- is now at extreme lows.  Note how at the end of the
day the price closed under the two trendlines forming strong
resistance at 874.50.

ES 60 minute Chart:
What we have here is a rising wedge, which often fails to the
downside.  There is no more room to fluctuate, the wedge must now
break either up or down.  While down is the expected, watch out
for a breakout above as a trap.  However a breakout above actually
holds (no reversal) then this can be seen as very bullish.

ES 15 Minute Chart: Large View

ES 15 Minute Chart: Closeup

NQ daily is a little less bullish than the ES.  It broke briefly
below yesterdays lows, and did not close near the highs like the
ES and YM did.  Indicators have ceased their move up and are now
pausing, but have not rolled over to indicate a possible move

NQ 270 Minute All Sessions Chart:
Compared to the ES, which is still holding bullish, the NQ has
broken.  It has moved outside its rising trendline after forming
bearish divergences on all indicators.  Uptrend lines on RSI, ADX
and Macd have broken.  After the break of the trendline, price has
moved up to retest it from underneath, but it has affected the

NQ 60 Minute Chart:
Price broke sideways out of the rising trendline, but is now
riding along the center of a support line of the regression
channel.  It also looks to be forming a rising wedge (shown in
yellow), with another run to 1090-1100 a possibility, if we move
up from this area.  Note that RSI and Macd have not yet crossed
below the centerline, so bias is still somewhat bullish on the 60
minute time frame.

Renko Charts.
These will be updated when necessary.

Daily Renko for ES:

Daily Renko for NQ:

Daily Renko for YM:
This one is a little more difficult.  I set the box size to 5
rather than 2, and I don’t display the huge climb from the recent
rally (it would take up most of the chart).  With the larger box
size, the absolute numbers have a slightly larger margin of error.


Home on the Range
Jonathan Levinson

The markets treated us to a relatively calm day of rangebound
trading with no surprises other than the lack of any surprises.
We saw an extension of the trading range that has held across the
indices, leading nowhere fast and causing traders to wonder
whether we're looking at a consolidation/continuation pattern
here at the highs, or a gradually forming top.  Today's action
occurred despite a nearly continuous stream of rumors concerning
the war, surrenders of troops, captures and defections of heads
of state, etc.  Following Joe Granville's view that "news is
noise", we'll analyze the relatively orderly market action seen

Treasuries continued to sell off, with yields up strongly on the
day, no doubt assisted by the fed's reverse repurchase agreement
in the amount of $1.25B.  Despite the movement of money out of t-
bills, however, equities traded within a predictable range
throughout the day.  A late afternoon surprise had the indices
print new highs on a 5 minute candle bearish ascending wedge,
with the exception of the COMPX and QQQ which were unable to
surpass the morning highs.  The COMPX and QQQ notably unperformed
the other indices, failing to print new highs toward the close,
perhaps a sign of things to come after outperforming their peers
during the past months.   Volume was respectable but lighter than
yesterday at 1.72V NYSE shares and 1.67B COMPX shares.

Volatility was slightly higher, with the VIX adding .4 to close
at 36.18, QQV +.64 to 42.69 and VXN +.18 to 48.20.  Despite the
gains on the day, volatility was higher, which is a divergence
we've been observing throughout the week.

Without zooming in on the subatomic (5 minute candle) charts, the
end of day push printed an ascending or rising wedge on the
indices.  Chart patterns are not infallible, but according to
Bulkowski in the "Encyclopedia of Chart Patterns", this formation
tends to break lower roughly 75% of the time.  Suffice it to say
that the move to the day highs was not done in a healthy manner,
and leaves the indices set up on a short term basis for a weaker
open, or a push higher within the formation followed by a
pullback or breakdown out of the 5 minute candle formation
shortly thereafter.

On to the charts:

The INDU is trading on buy signals across the indicators I follow
but stopped in a significant resistance zone.  While the close
above the widely-watched 8250 was significant, it's far from out
of the woods with resistance all the way up to the 61.8 fib
retracement off the March low, which falls at 8314.37.  Next
resistance is at 8506.12, followed by 8869.30.  Support below is
at the 50% line, at 8142.95, then 7971.53, 7779.78 and 7416.6.

While the oscillators are in bull runs, note that the stochastics
are getting toppy, and the volume has been dropping off
throughout the week.  Combined with the positive VIX today, these
indicators should have bulls snugging up their stops to protect

The SPX showed us similar action today, closing right at critical
resistance below the 875 line.  Fib resistance is just above at
879.19, again from the 61.8% retracement line off the March lows.
Fib support is below at 861.95, then at 844.71.  We see again the
toppy but still bullish stochastics, declining volume as price
advances, and VIX divergence today.

The OEX closed at 444.84, just below its 61.8% retracement line
which resides at 446.50.  Support is below at 437.66, then at
428.83, 418.95 and 400.24.  Resistance above is 446.50, 456.38
and 475.09.

As noted above, the COMPX lagged the INDU, SPX and OEX today, and
the results are clearest on the candle pattern and stochastics.
While candlesticking is not my specialty, the closing print
appears to me to be a bearish doji star, which is a topping
formation indicating indecision.  The stochastics are closer than
those of the INDU, SPX and OEX to giving a bearish cross.  As
well, the lighter volume today confirms the indecision and lack
of follow-through at the top, and, lastly, the COMPX closed
negative, down 3.43 on the day at 1397.10.  Resistance is above
at 1402, followed by the 61.8% retracement at 1413.78.  Support
is at 1385, 1360.25, 1334.99, 1306.72 and 1253.20.

The QQQ is the most bearish of the bunch, with the stochastic
oscillator having given a sell signal with a bearish cross from
overbought, and closing the most negative of the indices above.
Note that the high reported appears to be a bad print, as I would
remember having seen a print of 27.76 at some point.  Resistance
is at 26.84, followed by 27, followed by 27.47.  Support below is
at 26.49, 26.33, 25.97, 25.04, 24.52 and 23.54.

Aside from the indicators discussed above, the leading weakness
in the QQQ should have bullish traders cautious.  I am not
suggesting shorting this market with abandon, because the events
of the past week have shown that caution is the only appropriate
strategy.  I'm not suggesting going long either for the reasons
seen above.  There are buy signals on the charts, but others are
telling us that this rally is showing signs of weakness and
potential reversal.  Whatever you choose to do, do it defensively
and use stops.  With geopolitical event risk at relative highs
and no one, from Chairman Greenspan on down to the pundits in the
media, can predict the consequences thereof.  War has gone from
being bullish to bearish and back again, with the interpretation
of the news changing almost with each passing hour.  Treat it as
noise and follow your charts, but above all, protect your
capital.  Traders are getting their accounts blown out in this
environment, and if you're finding it difficult, tricky or
treacherous, you're not alone.

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The World Funds, Inc.

The World Funds is a mutual fund that consists of six separate
series with combined assets of $240 million.  Each of the fund
series has its own investment objective, strategy and separate
portfolio.  The fund series currently available are as follows:

 CSI Equity Fund (CSIIX)
 CSI Fixed Income Fund (CSIDX)
 Genomics Fund (GENEX)
 Third Millennium Russia Fund (TMRFX)
 Sand Hill Portfolio Manager Fund (SHPMX)
 The New Market Fund (AVMIX)

Three of the World Funds' offerings are currently available on a
no-load NTF basis through Schwab's OneSource program: CSI Equity
(CSIIX), Genomics Fund (GENEX), and Third Millennium Russia Fund
(TMRFX).  Note, however, that each series has a "redemption" fee
of 1.0% or 2.0% on shares sold within a year.

Four series have a low minimum initial investment of $1000.  The
Genomics Fund requires a $5000 initial minimum, while New Market
Fund (AVMIX) has a $25,000 minimum initial purchase requirement.
So, the New Market Fund may be out of reach for most individuals.

CSI Capital Management serves as investment advisor on two World
Fund series - Equity Fund (CSIIX) and Fixed Income Fund (CSIDX).
xGENx LLC serves as the investment advisor on the Genomics Fund
(GENEX).  The Third Millennium Russia Fund (TMRFX) portfolio is
managed by Third Millennium Investment Advisors.  The Sand Hill
Portfolio Manager Fund (SHPMX) is run by Sand Hill Advisors and
the New Market Fund (AVMIX) is managed by the London Company of

For complete information, or to download a prospectus, go to the
World Funds' website at www.worldfundsonline.com.  There you can
find more details on management fees, expenses, and special risk
considerations associated with each series of the fund.

Fund Overview

Perhaps the two most "plain vanilla" offerings in the fund are
the CSI Equity Fund and CSI Fixed Income Fund.  Both funds are
managed by Leland Faust of CSI Capital Management, the firm he
founded in 1978.  The Equity Fund seeks long-term appreciation
through investments in a diversified portfolio of common stock,
primarily well established, large-cap companies located in the
U.S. and abroad.  Leland utilizes a blend of "value and growth"
investment strategies in the security selection process.

The CSI Fixed Income seeks current income by investing in debt
securities.  Such securities may include obligations issued or
guaranteed by the U.S. government and U.S. government agencies,
authorities and instrumentalities.  It may also invest in muni-
debt securities, corporate debt securities, zero coupon bonds,
and obligations of foreign governments, corporations and other
entities.  Leland is also the portfolio manager of this series.

The GenomicsFund is a specialty-healthcare offering that seeks
capital appreciation through investments in a "non-diversified"
portfolio, primarily equity securities of companies, which are
engaged in genomics or genomic-related businesses (normally at
least 80% of assets).  Because the offering operates as a "non-
diversified" fund under the Investment Company Act of 1940, it
may hold a larger portion of its assets in a smaller number of
securities.  Commonwealth Capital Management is the investment
advisor to the fund.  In the interest of limiting fund expense,
Commonwealth has assumed the fund's existing expense agreement
from xGENx LLC.

Like the Genomics Fund, the Third Millennium Russia Fund seeks
capital appreciation by investing in a non-diversified, common
stock portfolio.  John Conner with Third Millennium Investment
Advisors LLC and Alexei Molkvin with ROSGAL are co-managers of
the fund series.  Under normal conditions, the fund invests at
least 80% of its assets in equity securities, and convertibles,
of companies located in Russia.  Suffice to say, investment in
Russian securities involve substantial risk and are considered
"highly speculative."  But, as Barton Biggs (of Morgan Stanley)
once told me, you have to willing to go places others won't if
you want the opportunity to make big money.

The Sand Hill Portfolio Manager Fund seeks to maximize returns
through investment in a diversified portfolio of stocks, bonds
and money market instruments on a "global" basis.  In managing
assets, the fund seeks to minimize the tax burden to investors.
Jane Williams, who founded Sand Hill Advisors, Inc., has served
as the portfolio manager since fund inception in 1995.  She may
invest (without limit) in each of these three asset classes and
may invest a varying proportion of assets in foreign securities.
So, this offering has a "go-anywhere" style.

The sixth series of the World Funds, Inc., The New Market Fund,
seeks to achieve long-term growth of capital by investing in a
portfolio composed of common stocks and securities convertible
into common stock (i.e. warrants, convertible bonds, debentures
and convertible preferred stock).  Stephen Goddard, president and
principal shareholder of The London Company of Virginia, has been
the fund's portfolio manager since its 1998 inception.  The fund
is "non-diversified."

As you can probably tell by now, some of the series of the World
Fund, Inc. are unique in their strategy, offering investors ways
to further diversify their investment portfolio.  Genomics Fund,
for instance, is the only fund of its kind specializing in genes.
The Third Millennium Russia Fund is the only mutual fund that we
know of that specializes principally in Russian stocks.  Risk is
higher in these two offerings, but theoretically so is potential

In the next section, we see how well the World Funds, Inc. funds
have performed over various time periods relative to their peers
(as categorized by Morningstar).

Investment Performance

Since each of the six series of the World Fund Inc. have existed
for at least three years, they all have Morningstar return, risk
and overall, risk-adjusted ratings.  Only three series have been
around five years, long enough to experience some good times, as
well as bad times (since 2000).

Below is a performance summary as of March 18, 2003 for the three
World Funds' series with at least five years of history.

 Average Annual Return/Morningstar Category Ranking:
 + 3.9%  CSI Equity Fund (CSIIX) 2nd Percentile
 +10.0%  CSI Fixed Income Fund (CSIDX) 1st Percentile
 - 3.6%  Sand Hill Portfolio Manager Fund (SHPMX) 52nd Percentile

Here you can see the fine job that Leland Faust has done with the
two CSI portfolios.  The Equity Fund produced a 5-year annualized
total return of 3.9% for investors, ranking in the 2nd percentile
of the Morningstar large-cap blend stock fund category.  The fund
was able to capture some of the returns available during the bull
market of the late 1990s and posted a positive return in the year
2000 as other equity funds began to falter.  Since 2001, his fund
has lost ground but Leland has done a better job than other funds
of preserving capital.  The result, a positive 5-year return, and
a 2nd percentile ranking.  Note that Lipper categories the Equity
Fund as a "global" fund.

The CSI Fixed Income Fund has a 10% average annual return for the
5-year period, ranking in the 1st percentile of the international
bond fund category per Morningstar.  Note, however, that the fund
is categorized as a "corporate A-rated debt" fund by Lipper so it
is somewhat of bond fund hybrid, investing in both U.S. bonds and
foreign debt securities.  Nonetheless, an equity-like 10% return.

The Sand Hill Portfolio Manager Fund has lost an average of 3.6%/
year over the past five years, ranking in the middle of the large
blend category per Morningstar.  In the past year, the series has
held up better than the U.S. stock market (S&P 500 index) ranking
in the top decile of the Morningstar large-blend category.  It is
"global flexible portfolio" in Lipper's system.

The Third Millennium Russia Fund (TMRFX) struggled in 2000 but in
years 1999, 2001, 2002 and YTD 2003 it knocked home runs, ranking
no worse than 3rd percentile in the Morningstar Europe stock fund
category.  The result, a 3-year annualized loss of just 0.9%, and
a category ranking in the top decile (2nd percentile).  In 99, it
produced a staggering 145% total return, then dropped in value by
29% in 2000.  That should provide a feel of how well (poorly) the
fund series can perform in any given year.  By the end of 2000 it
had people running for the exits, but the strategy has since come
back strongly.


True to its name, World Funds Inc., the six series have "global"
mandates.  Although some funds land in the Morningstar large-cap
blend category, they may invest a sizeable portion of assets in
foreign securities.  Thus the term "global flexible" may be more
appropriate for these six offerings.

If you're invested primarily in U.S. securities and funds, these
funds may play a "supporting" role in your portfolio.  Among the
available options, we like the job that Leland Faust has done on
the CSI Equity Fund and the CSI Fixed Income Fund.  Both of them
have performed very well over the past five years in relation to
their category peers (per Morningstar).

For more information, go to the www.worldfundsonline.com website.

Steve Wagner
Editor, Mutual Investor


So, You Want To Know The Future?
by Mark Phillips

Hey, me too!  In all seriousness, for those of you that don't
tune into the Market Monitor during the day, tonight's article
will be another installment of me donning my "Great Carnac" hat
and gazing into my crystal ball.  I received an email requesting
just that this afternoon, and when I inquired in the Monitor
about whether there was any interest, the response was
overwhelming.  Wow!  I fell like Sally Field, "You like me, you
really like me!"  HUGE GRIN

The nature of the question I received is "What do I see for the
markets, looking out over the next 3-6 months, assuming the
Iraq conflict goes according to "script", whatever that means.
That seemed like a good question to me, as the markets have
lately been locked into the All-Iraq, All-The-Time theme.
Economics, earnings, and anything other than geopolitical news
is being ignored.  We all know that fog will clear in the very
near future -- at least we hope it does.  And our job is to try
to look out past the Gulf conflict to try to determine where
our beloved markets are headed next.

So let's get to it shall we.  Never mind the chanting in the
background, that's just me entering my predictive trance.
Alright, enough bad jokes. Here we go.

First, let's start with some background.  The last time I delved
into this topic was on January 6th, when I started a two-part
discussion on my prognostications for the coming year.  If you
missed those articles, then feel free to take a look at those
articles at the links below.

'Tis The Season

'Tis The Season, Part II

In that discussion (for those that don't want to take the time
to read the old stuff), was my prediction that the broad markets
would actually avoid the dreaded 4th consecutive down year.
Additionally, I pointed to the likelihood that the NASDAQ would
perform better than the rest of the market, due in large part
to the fact that most of the punishment has already been meted
out to Technology stocks, while there is still a fair amount
of excess to be wrung out of the rest of the market.

That second point has certainly turned out to be true over the
past couple months, as the NASDAQ Composite (COMPX) bottomed
last week well above its October lows, finding support at the
1260 level once again.  A simple relative strength chart
comparing the COMPX to the S&P 500 (SPX.X) bears this out
quite clearly.

Relative Strength Chart of the COMPX vs. SPX

See how the RS chart bottomed in December of last year at a
significantly higher level than that seen in October?  That
looks very good for my premise of outperformance for the
Technology sector of the market.  We can get another view of
this strength by just looking at the chart of the COMPX, shown

Daily Chart of the NASDAQ Composite - COMPX

As you can see, the COMPX is still mired within the descending
channel (red lines) that has been building for nearly two years
now.  But isn't it interesting how this index has been
consistently finding support above the center line (gray line)
of that channel for the past few months?  Add in this week's
breakout over both the 50-dma and the 200-dma and the COMPX
looks like it might have some room to run if it can clear
near-term resistance in the 1400-1425 area.

So does this mean we can just go out and buy LEAP calls on the
QQQ and let it ride into the end of the year?  Maybe, but I have
a lot of reservations.  You see, the COMPX looks bullish on a
technical basis right now, but the technicals are only one part
of this equation.  A big reason the COMPX looks so good right
now is that it (and the rest of the market) are in the process
of rebounding from a severe oversold condition.  So what are
the other components we need to pay attention to, when trying
to divine the direction of the market?  Fundamentals and

First, let's deal with the issue of sentiment.  Since the middle
of January, the market has been fixated on the looming war in
Iraq, with a tremendous amount of uncertainty being priced into
the market.  That has created the oversold condition that we are
now recovering from.  Over the past week, this oversold condition
has been unwinding rather rapidly, as traders have attempted to
front-run what they expect will be a powerful post-conflict
rally, using the 1991 Gulf War as the template.  So you see,
while technicals have certainly played a role, the decline and
subsequent rally since early December has been predominantly
driven by changing sentiment -- first pessimistic and now

Here's the big potential problem though.  The current rally in
the market is predicated on a relatively smooth operation in
Iraq.  In my opinion, that means a conflict that is measured in
the 2-4 week timeframe, with the absence of large numbers of
U.S. casualties and Saddam not resorting to the use of weapons
of mass destruction.  That is the scenario that is currently
priced into the market, along with the unspoken assumption that
after the war is out of the way, the economy will recover
smartly into the end of the year.  Aaahhh, now there is that
pesky issue of fundamentals that we've avoided up to this point
in our conversation.  This is also the part of the equation
that is currently being ignored by the market in hopes that it
will get better after the war is over.

If I was to detail my thoughts on the state of the economy
(which is really what fundamentals for the market boil down to
right now), I could probably fill another 15-20 pages,
discussing things like the trade balance, currency concerns,
interest rates, unemployment, inflation vs. deflation, the
housing market, the retail environment, the price of oil and
the outlook for gold.  Fortunately for me, I don't need to
write that thesis, as Buzz Lynn has done an excellent job of
that over the past couple months.  Buzz and I don't necessarily
agree on everything, but we are pretty much on the same page
with respect to the economic outlook both here in the U.S. and
for the global economy.  If you haven't read his series, I
highly recommend it.  Here are the links for your convenience.

Joining The Fray

To Inflate or Deflate - That is the Question

To Inflate or Die - That is the Second Question

Real Estate 2003 - Boon or Bubble?


Now that you're back from reading that dissertation on the state
of the economy, let's look at where we are right now.  Interest
rates are still at multi-decade lows and unlikely to move up any
time soon.  In fact the economic picture is so uncertain that at
this week's FOMC meeting, Alan Greenspan declined to even issue
a statement on the economic risks.  I think there are two
possibilities here: either the Fed chief doesn't know what to
make of the current economy (i.e. doesn't have a clue) or sees
something ugly on the horizon that he doesn't want to disclose
to the public as the country heads to war.  Neither option
sounds very encouraging to me.

I find the recent developments in the Housing market to be
interesting too.  On numerous occasions over the past year,
Greenspan has forcefully stated that the housing market is NOT
in a bubble like that which the equity markets are still dealing
with.  So isn't it curious that with sharp declines in the
housing reports for the past two months, the Fed chief warned
that we should expect weakness in the housing and refinancing
markets this year?  It doesn't take a genius to see that the
economy has been propped up over the past couple years by the
cycle of refinancing, the proceeds of which have been used to
fund consumption.  But with interest rates at multi-decade lows,
and not likely to go much lower, the incentive for another refi
is dramatically reduced.  Translation: the gravy train that has
been propping up the economy in the vacuum left behind when
businesses stopped spending looks like it has run its course.

The trade imbalance is looking uglier by the month, auto sales
are falling and unemployment is rising.  Even after the pullback
in the past several days, energy prices are still quite elevated.
This equates to a direct tax on both the consumer and business.
For every extra dollar the consumer has to pay for energy, that's
a dollar that is unavailable to drive economic growth.  Similarly,
that increased fuel cost increases the cost for energy-intensive
businesses to produce what they produce.  In a normal economic
environment, companies would simply raise prices to maintain
profit margins.  But they can't do that right now, as there is a
glut of supply and a shortage of demand.  So what we have is a
consumer with fewer dollars to spend on products produced by
Corporate America, intensifying the competition (read: price
competition) for those discretionary dollars that are in
circulation.  This competitive cycle in the business world is
global, and China is exporting deflation to the world, due to
its ability to produce "stuff" cheaper than anyone else.  The
weakness in the dollar just feeds that cycle, as China's
currency is tied to the dollar.  So as the dollar weakens,
China's goods are cheaper on the global market, intensifying
the pricing pressures on domestic companies.  I could go on
and on about this topic, but what it boils down to is there is
not a definable engine for growth in the economy, either in the
U.S. or worldwide.

So what does any of this have to do with the imminent war in
Iraq?  Actually nothing, but what is key is that market
participants have been ignoring all the economic problems over
the past week in the hope that when the smoke clears in Iraq,
consumers and businesses will go back on a spending spree.  Call
me a cynic, but I say that dog won't hunt.  Record levels of
debt (for consumers, businesses and governments) mean that more
and more revenue is being used to service that debt.  That means
it isn't going to be used to fuel economic growth.  Investors
seem to be dancing to the 1991 game plan, where the markets
embarked on a strong rally following the start of the first Gulf
War.  But I see the underlying conditions as very different this
time around.

Even if the conflict in Iraq goes smooth as glass, when it is
all over, investors will be confronted with an S&P 500 P/E ratio
(based on core earnings) of about 40, and a dividend yield of
less than 2% in a stagnant economy.  Those numbers for P/E ratio
and dividend yield are typical of bull market tops, not bear
market bottoms.  There are only two ways to bring those two
metrics in line with what is typical near a bear market
bottom - earnings and dividend payouts need to rise or stock
prices need to fall.  I think I've made a pretty good case above
that growing earnings over the next year is going to be a
Herculean task for most companies, as there just isn't anything
to drive growth to the bottom line.

Six weeks from now, we'll be looking at the April earnings cycle
in the rear-view mirror and while it may not be a disaster, it
isn't likely be strong enough to usher in a new bull market --
not even a cyclical one.  At the same time, early May will usher
in the "bad" 6 months of the year (May-October) that are usually
least kind to stock market bulls.  I've made no secret of my
opinion that we haven't seen the bottom of this bear market,
by any stretch of the imagination.  But I think it is going to
be a very interesting path between here and the bottom.

Over the near-term, we're likely to continue the rally that is
currently underway, provided there aren't any nasty surprises
related to the war effort.  The bullish percent charts will
likely continue their trek from oversold territory, back up
to overbought and we'll be ready to repeat the process.  I've
frequently referred to the descending channel that the SPX has
been mired in for the past few years.  That channel shows no
signs of being broken anytime soon, in large part because there
isn't a sufficient fundamental catalyst to get the job done.
The top of that channel is at the 950 level right now, which is
very near the highs in both November and January.  I expect the
top of that channel to once again deflect this rally downwards,
if it gets that far.

Therein lies the problem with my prognostication from January,
though.  You see, if you project this channel out to the end of
the year, the top of that channel will be at 750!!  There's
certainly no way the SPX can remain in the channel AND close
positive for the year, now is there?  So either, it has to break
out of that channel, or my guess for a positive close for the
year is WAY off.  I think before we ring in another new year,
the SPX will indeed break and hold above the top of that
descending channel, but the path isn't going to be pretty.  My
view is that after the fog of war has been cleared from our
collective viewscreen and we once again focus on the economy,
the market will have no choice but to head back to the south,
breaking below the October lows in the process.  We ought to
find a bottom on that decline near the 700 level, probably
sometime in the latter part of the summer.  I'm basing my
timeframe on the latest cycle from low to high to low, which
took just about 5 months.  Five months from now will have us
closing in on the end of August.  It isn't an exact science,
by any stretch of the imagination, but I think it ought to work
for the purposes of our discussion.  Note that at the end of
August, the center line of that descending channel will have
fallen to about 675, and we will really need to see it hold as
support, for the subsequent rebound.

If the SPX actually trades that low, I think the spring will
actually be coiled tightly enough to propel the SPX out of its
channel and we should be in the process of actually starting to
build a bottom.  A couple of other metrics that we'll want to
start watching for at that time will be for the 50-dma and
200-dma to bottom, then turn up, and for the 50-dma to cross
above the 200-dma.  Once the SPX pushes through both of these
upturned moving averages, I'll be happy to chant "The bulls are
back in town".  It may not be the start of a new Bull Market
(I expect that event is still a few years off), but it could be
time for a serious advance that results in the upside break of
that channel.

For a picture of what that will look like, all you have to do
is look at the COMPX daily chart up above.  Actually, the COMPX
isn't quite there yet, as both moving averages are still pointed
south.  But with price now over both averages, we can start the
process of at least flattening them out...with enough time.  The
process of turning those moving averages around will help to
break the COMPX out of its descending channel, just like we
expect at a later date from the SPX.

Let's summarize based on the three major factors I mentioned
above.  Sentiment is in control right now, more appropriately
termed, "fear of missing the next rally".  When the war fades
from our view, we'll be forced to confront the reality of our
economy for what it is.  Without some earth-shaking good news
in the April earnings cycle, investors are going to lose their
appetite for being long stocks.  Then the technicals will come
into play with a vengeance, just like at the end of each of the
prior bear market rallies, and we'll get another big drop.  I
feel the action in the VIX will be particularly interesting,
but we just don't have the time to go into it tonight.

So if you're bearish, don't fret.  There will be another major
rollover in the market that we can play for all it's worth.
And for the bulls, my recommendation would be to focus your
efforts in the NASDAQ stocks, as that is where the relative
strength currently is.  The blow-by-blow of what to expect each
week will be dependent on the developments in the bullish
percents and the technical price action.  But more up, then
more down and finally a big push up at the end of the year, is
where I see this great game shaking out.  It may not be enough
to prove me right on a positive close for the year, but I'm
willing to bet the COMPX will close well into the 'plus' column.

That's all the Great Carnac has for tonight.  Have a great
evening and we'll talk again over the weekend.


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offers true direct access to each option exchange
offers stop and stop loss online option orders
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Bulls Still In Charge

After a day of mostly churning, the bulls once again took control.
If there was any doubt as to why we are rallying, a late day surge
on the rumor that the U.S. had already begun bombing Iraqi
artillery positions across the border from Kuwait answered any

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The Option Investor Newsletter                Wednesday 03-19-2003
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: BAC, XL
Play of the Day: Call -BCR
Big Cap Covered Calls & Naked Puts: Investors Remain Cautious Amid
War Worries!

Updated on the site tonight:
Market Posture: Techs Anchor Rally
Market Watch: Running of the Bulls

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BAC $69.50 +1.16 (+2.19 for the week) We tightened our stop in BAC
after the broad market rebound took many of the financials with
it.  The stock followed the other banks higher today, after Bear
Stearns released earnings results that beat expectations.  The
additional profits came from the fixed-income trading side, after
investors switched out of stocks.  It was enough to lift the Bank
Indices (BIX and BKX), which carried BAC along for the ride and
through our stop.  WE are letting this one go, but trader's who'd
like to give it more room can use a stop just above $70.


XL  $70.21 +1.02 XL bounced after at one point registering a $5
move in our favor.  It continued to fail at $70 on multiple
attempts, and we lowered our stop to $70.06.  The first time it
tested $70 and failed, it rolled over hard and provided a nice
entry point for the play, however, this time it has hung in and
now closed above our adjusted stop.  We are letting this one go
with the show of strength above $70.  If we do get a pullback in
the morning trader's can use it to exit, although if the stock
breaks down below its 21-dma at $67.99 before finding support,
then put holders may want to give it another chance.

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
offers online spread order entry for net debit or credit
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BCR - C. R. Bard, Inc. $61.05 +1.31 (+2.65 this week)

Company Summary:
C. R. Bard, Inc. is engaged in the design, manufacture, packaging,
distribution and sale of medical, surgical, diagnostic and patient
care devices.  Hospitals, physicians and nursing homes purchase
used once and discarded.  BCR's major product group categories
are: vascular diagnosis and intervention, urological diagnosis and
intervention, and oncological diagnosis and intervention. In
addition, the company maintains a fourth product group, surgical

Why We Like It:
The past few days have seen some impressive bullish action
throughout the market, with many stocks in numerous sectors
posting impressive upward moves.  Many of those moves have seemed
to be largely short-covering related, but we've got a new play
tonight that is breaking out on what looks like good old-fashioned
organic buying.  The longer a stock takes to break out of a
consolidation pattern, the more powerful that move tends to be.
Well, BCR has been working its way higher since the July lows,
with each rally being stopped by the $60 resistance level.  But
not this time.  Monday's surge higher took BCR right to the edge
of that resistance again, and then despite the broad market
indecision on Tuesday, the bulls blasted through that level on
strong volume.  Closing just over the $61 and at the high of the
day, BCR posted its best closing price since January of 2002.
That move was good for a quad-top breakout on the PnF chart, and
the bullish price target is now tentatively set at $74.  BCR's
all-time high is just shy of $65, so achieving that target will
have the stock well into new high territory.  Following such a
strong breakout, it is entirely possible that BCR could continue
to power higher.  That means a continued breakout over today's
highs (as long as volume remains strong) can be used for new
momentum-based entries, using $61.25 as a trigger.  Of course,
the preferable entry point will come on a dip back to confirm
the $59-60 area as newfound support.  Place stops initially at
$57.75, just below recent support.

Why This Is Our Play of the Day:

BCR added to its quad top breakout on the PnF chart today, but
not before testing its breakout level as support.  The stock
dropped to $60.51, testing the level we referred to in last
night's play write-up, giving traders who were looking to enter
on a pullback a nice entry point, and then moved higher above our
momentum entry trigger at $61.25.  While BCR may react along with
the broader markets to any war jitters, we like the show of
support we got this morning after the decisive breakout on the
point and figure chart.  New entries can jump in at current
levels, or more conservative traders can wait for a broad market
pullback and hope to get a similar entry to this morning's just
above $60.

BUY CALL APR-60*BCR-DL OI=2246 at $2.20 SL=1.25
BUY CALL APR-65 BCR-DM OI=  70 at $0.35 SL=0.00
BUY CALL JUL-60 BCR-GL OI=1252 at $3.70 SL=2.00
BUY CALL JUL-65 BCR-GM OI=  38 at $1.50 SL=0.75

Average Daily Volume = 279 K

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options,” claims author Larry Spears in his new compact guide book:

“7 Steps to Success – Trading Options Online”.

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and clicking on the link to the book on its home page.



Investors Remain Cautious Amid War Worries!
By Ray Cummins

Stocks edged higher today despite concerns over the length of the
impending Iraqi conflict and the uncertain outlook for President
Bush's $726 billion tax-cut plan.

The Dow Jones industrials ended up 71 points at 8,265 on solid
gains by Altria (NYSE:MO), Kodak (NYSE:EK), Citigroup (NYSE:C),
Merck (NYSE:MRK), and J.P. Morgan (NYSE:JPM).  In contrast, the
technology composite slipped 3 points to 1,397 as semiconductor,
Internet, and software and hardware shares kept the NASDAQ in the
red.  The S&P 500 index climbed 7 points to 874 with drug and bank
shares enjoying selective buying interest while airlines, oil and
biotechnology issues generally retreated.  Advancers led declines
17 to 15 on the New York Stock Exchange and 16 to 15 on the NASDAQ.
Trading volume was moderate with over 1.4 billion shares changing
hands on the Big Board, while 1.7 billion shares were swapped on
the technology exchange.  The benchmark 10-year bond slumped 16/32
at 99 8/32 to yield 3.96%, up from 3.91% in the previous session.
The 30-year treasury gave up 15/32 to yield 4.91%, up from 4.88%.




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.


The Maximum Yield (listed in the summary and with "naked" 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

ANF      MAR    25   24.40  30.21   $0.60   5.97%  2.46%
CLX      MAR    40   39.00  44.71   $1.00   5.01%  2.56%
OTEX     MAR    25   24.50  28.47   $0.50   4.97%  2.04%
SYMC     MAR    40   39.15  46.27   $0.85   5.10%  2.17%
VIP      MAR    30   29.40  37.09   $0.60   4.74%  2.04%
ANF      MAR    25   24.65  30.21   $0.35   4.66%  1.42%
AVCT     MAR    22   22.20  25.50   $0.30   4.59%  1.35%
DISH     MAR    22   22.00  30.06   $0.50   7.13%  2.27%
IGEN     MAR    30   29.50  33.80   $0.50   6.04%  1.69%
PTEN     MAR    30   29.45  33.39   $0.55   5.17%  1.87%
RYL      MAR    37   36.95  41.35   $0.55   4.42%  1.49%
AVCT     MAR    25   24.70  25.50   $0.30   4.78%  1.21%
DISH     MAR    22   22.15  30.06   $0.35   6.56%  1.58%
NBR      MAR    35   34.65  39.85   $0.35   4.30%  1.01%
VLO      MAR    35   34.60  40.96   $0.40   4.49%  1.16%
CELG     APR    22   21.25  26.10   $1.25   8.68%  5.88%
ERES     APR    20   19.20  25.68   $0.80   8.04%  4.17%
LLTC     MAR    27   27.15  34.65   $0.35   6.76%  1.29%
MXIM     MAR    30   29.70  39.84   $0.30   5.88%  1.01%
SLAB     MAR    22   22.30  29.84   $0.20   5.78%  0.90%
XNLX     MAR    20   19.75  26.93   $0.25   7.16%  1.27%

Positions previously closed: Patterson-UTI (NASDAQ:PTEN);
$32.50 strike, Noble (NYSE:NE) and BJ Services (NYSE:BJ),
all of which are currently positive.

Naked Calls

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

ESRX     MAR    55   55.70  55.94  ($0.24)  0.00%  1.26%
GM       MAR    37   38.10  34.12   $0.60   4.60%  1.57%
VIA      MAR    40   40.95  38.60   $0.95   6.44%  2.32%
CCMP     MAR    50   50.55  45.72   $0.55   5.47%  1.09%
KLAC     MAR    40   40.50  38.13   $0.50   5.63%  1.23%
QCOM     MAR    40   40.45  39.25   $0.45   4.59%  1.11%
VZ       MAR    40   40.55  35.90   $0.55   4.73%  1.36%
OMC      MAR    60   60.55  54.49   $0.55   4.52%  0.91%
QCOM     MAR    37   37.85  39.25  ($1.40)  0.00%  0.92% *
QLGC     MAR    37   37.90  40.18  ($2.28)  0.00%  1.06% *
COF      APR    32   33.05  30.33   $0.55   5.56%  1.66%
MERQ     APR    35   35.80  34.59   $0.80   7.15%  2.23%
PHM      APR    50   51.10  49.65   $1.10   4.92%  2.15%

The bearish positions in Qualcomm (NASDAQ:QCOM) and Qlogic
(NASDAQ:QLGC) should have been closed last Friday for much
smaller losses during the initial stages of the broad rally.
Express Scripts (NASDAQ:ESRX) is also a candidate for early
exit along with Capital One (NYSE:COF), Mercury Interactive
(NASDAQ:MERQ) and Pulte Homes (NYSE:PHM).

Put-Credit Spreads

Symbol  Pick   Last  Month L/P S/P Credit  C/B    G/L   Status

BHE     34.68  32.45  MAR   25  30  0.60  29.40  $0.60   Open
PRX     33.67  40.00  MAR   25  30  0.40  29.60  $0.40   Open
SLM    105.54 108.79  MAR   90  95  0.45  94.55  $0.45   Open
EBAY    76.99  88.08  MAR   65  70  0.55  69.45  $0.55   Open
CAT     45.95  49.80  MAR   40  42  0.25  42.25  $0.25   Open
BRL     51.47  51.92  MAR   43  46  0.33  46.33  $0.33   Open
AGN     63.82  69.25  MAR   55  60  0.50  59.50  $0.50   Open
CTSH    69.62  65.14  MAR   60  65  0.60  64.40  $0.60   Open
EOG     42.14  40.13  MAR   35  40  0.50  39.50  $0.50   Open
LXK     62.82  64.97  MAR   55  60  0.70  59.30  $0.70   Open
AMGN    55.33  58.87  APR   48  50  0.30  49.70  $0.30   Open
NKE     46.48  48.99  APR   40  42  0.30  42.20  $0.30   Open

Call-Credit Spreads

Symbol  Pick   Last  Month L/C S/C Credit  C/B    G/L   Status

CCU    36.70   36.36  MAR   45  40  0.75  40.75  $0.75   Open
FDX    50.87   51.68  MAR   60  55  0.55  55.55  $0.55   Open
UTX    60.50   61.75  MAR   70  65  0.60  65.60  $0.60   Open
RD     39.56   40.31  MAR   45  43  0.25  42.75  $0.25   Open
AZO    64.86   71.20  MAR   75  70  0.50  70.50 ($0.70) Closed
MRK    52.10   53.02  MAR   60  55  0.55  55.55  $0.55   Open
CTX    50.03   52.34  APR   60  55  0.60  55.60  $0.60   Open
LEN    49.40   52.05  APR   60  55  0.55  55.55  $0.55   Open
LEH    53.42   58.50  APR   65  60  0.55  60.55  $0.55   Open

The bearish position in Autozone (NYSE:AZO) should have been
closed during Monday's sharp rally.  Centex (NYSE:CTX), Lennar
(NYSE:LEN), and Lehman Brothers (NYSE:LEH) are on the "early
exit" watch-list.  Biogen (NASDAQ:BGEN) gapped down during the
session after the position was offered, thus a credit near the
target price 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  61.00   APR-65C   MAR-65C  (0.40)   1.10    Closed
STJ	  43.69  47.55   APR-45C   MAR-45C   0.20    0.80    Closed

Apache Oil (NYSE:APA) has been closed to protect gains.  St. Jude
Medical (NYSE:STJ) has also offered favorable "early-exit" profits.

Credit Strangles

No Open Positions

Synthetic Positions

No Open Positions

Questions & comments on spreads/combos to Contact Support


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.



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.


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.

EXPE - Expedia  $47.13  *** USAI Merger/Buyout! ***

Expedia (NASDAQ:EXPE) is a provider of travel-planning services.
The company's travel marketplace includes direct-to-consumer
Websites offering travel-planning services located at Expedia.com,
Expedia.co.uk, Expedia.de, Expedia.ca, Expedia.nl and Expedia.it.
Expedia also provides travel-planning services through Voyages
sncf.com, as part of a joint venture with the state-owned railway
group in France.  In addition, the company offers travel-planning
services through its telephone call centers and through private
label travel Websites through its WWTE business.  WWTE is now a
division of Travelscape, one of Expedia's primary subsidiaries.

EXPE - Expedia  $47.13

PLAY (sell naked put):

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

SELL PUT  APR 40    UED PH   1,926    0.55  39.45   4.5%   1.4% *
SELL PUT  APR 42.5  UED PV     427    1.00  41.50   6.7%   2.4%
SELL PUT  APR 45    UED PI       0    1.65  43.35   9.1%   3.8%

GENZ - Genzyme General  $36.27  *** New Disease Treatments! ***

Genzyme General Division (NASDAQ:GENZ) is a division of Genzyme
Corporation, a biotechnology and human healthcare company that
develops products and provides services for unmet medical needs.
Genzyme General develops and markets therapeutic products and
diagnostic products and services with an emphasis on genetic
disorders and other chronic debilitating diseases with defined
patient populations.  The company is organized into two segments,
Therapeutics, which focuses on developing and marketing products
for genetic diseases and other chronic debilitating diseases,
including a family of diseases known as lysosomal storage
disorders, and specialty therapeutics, and Diagnostic Products,
which develops, markets and distributes in vitro diagnostic
products.  The company also operates a wholly owned subsidiary,
GelTex Pharmaceuticals.

GENZ - Genzyme General  $36.27

PLAY (sell naked put):

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

SELL PUT  MAR 35    GZQ OG   3,362    0.30  34.70  33.7%   0.9%
SELL PUT  APR 30    GZQ PF   2,056    0.40  29.60   4.7%   1.4% *
SELL PUT  APR 32.5  GZQ PP     443    0.75  31.75   6.6%   2.4%
SELL PUT  APR 35    GZQ PG     396    1.35  33.65   9.4%   4.0%

KLAC - KLA Tencor  $39.27  *** Rally In Progress! ***

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  $39.27

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  KCQ OU   2,169    0.30  37.20  31.9%   0.8%
SELL PUT  APR 32.5  KCQ PZ   3,724    0.55  31.95   5.8%   1.7% *
SELL PUT  APR 35    KCQ PG   2,040    1.00  34.00   8.1%   2.9%
SELL PUT  APR 37.5  KCQ PU     385    1.70  35.80  11.0%   4.7%

MSFT - Microsoft  $26.32  *** Entry Point? ***

Microsoft (NASDAQ:MSFT) develops, manufactures, licenses and
supports a wide range of software products for a multitude of
computing devices.  The company's software products include
scalable operating systems for servers, personal computers and
intelligent devices; server applications for client/server
environments; information worker productivity applications;
business solutions applications, and software development tools.
During 2002, Microsoft launched Xbox, its next-generation video
game system.  The firm's online efforts include the MSN network
of Internet products and services and alliances with companies
involved with broadband access and various forms of digital
interactivity.  Microsoft licenses consumer software programs,
sells hardware devices, provides consulting services and trains
and certifies system integrators and developers.

MSFT - Microsoft  $26.32

PLAY (sell naked put):

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

SELL PUT  APR 23.75 MQF PR   39,813   0.40  23.35   4.9%   1.7% *
SELL PUT  APR 25    MSQ PE   70,540   0.70  24.30   7.2%   2.9%
SELL PUT  APR 27.5  MSQ PY   31,656   1.90  25.60  14.2%   7.4%



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.

ADBE - Adobe Systems  $33.02  *** New Trading Range? ***

Adobe Systems (NASDAQ:ADBE) builds software solutions for network
publishing, including Web, print, e-paper, video, wireless and
broadband applications.  Its graphic design, imaging and dynamic
media authoring tools enable customers to create, manage and
deliver visually rich, reliable content.  The company licenses
its technology to hardware manufacturers, software developers and
service providers, and it offers integrated software solutions to
businesses of all sizes.  Its software runs on Microsoft Windows,
Apple Macintosh, Linux, UNIX, Palm OS and Pocket PC platforms and
Adobe distributes its products through a network of distributors
and dealers, value-added resellers, systems integrators and OEMs;
direct to end users through Adobe call centers, and through its
own Website, www.adobe.com.

ADBE - Adobe Systems  $33.02

PLAY (conservative - bullish/credit spread):

BUY  PUT  APR-25.00  AEQ-PE  OI=3534  A=$0.15
SELL PUT  APR-30.00  AEQ-PF  OI=506   B=$0.65
POTENTIAL PROFIT(max)=11% B/E=$29.50

CMCSA - Comcast  $29.91  *** On The Move! ***

Comcast (NASDAQ:CMCSA) is a cable operator involved in three
principal lines of business: cable, through the development,
management and operation of broadband communications networks;
commerce, through QVC, its electronic retailing subsidiary; and
content, through its consolidated subsidiaries Comcast Spectacor,
Comcast SportsNet, Comcast SportsNet Mid-Atlantic, Comcast Sports
Southeast, E! Entertainment Television, The Golf Channel, Outdoor
Life Network, G4 Media, and through other programming investments.
The company has deployed digital cable applications and high-speed
Internet service to most of its cable communications systems.

CMCSA - Comcast  $29.91

PLAY (conservative - bullish/credit spread):

BUY  PUT  APR-25.00  CCQ-PE  OI=2045  A=$0.35
SELL PUT  APR-27.50  CCQ-PY  OI=3365  B=$0.65
POTENTIAL PROFIT(max)=14% B/E=$27.20

FRX - Forest Labs  $53.10  *** New FDA Approval Upcoming? ***

Forest Laboratories (NYSE:FRX) develops, manufactures and sells
both branded and generic forms of ethical drug products that
require a physician's prescription, as well as non-prescription
pharmaceutical products sold over-the-counter.  The company's
most important U.S. products consist of branded ethical drug
specialties marketed directly, or "detailed," to physicians by
its Forest Pharmaceuticals, Therapeutics and Specialty sales
forces.  The company's many products include those developed by
Forest and those acquired from other pharmaceutical companies
and integrated into Forest's marketing and distribution systems.
Principal products include Celexa, an SSRI for the treatment of
depression; the respiratory products Aerobid and Aerochamber;
Tiazac, a once-daily diltiazem for the treatment of hypertension
and angina; and Infasurf, a lung surfactant for the treatment and
prevention of respiratory distress syndrome in premature infants.

FRX - Forest Labs  $53.10

PLAY (less conservative - bullish/credit spread):

BUY  PUT  APR-45.00  FHA-PI  OI=923  A=$0.35
SELL PUT  APR-50.00  FHA-PJ  OI=744  B=$0.95
POTENTIAL PROFIT(max)=14% B/E=$49.40

LXK - Lexmark Intl.  $65.89  *** To The Top Of The Range! ***

Lexmark International (NYSE:LXK) is a developer, manufacturer
and supplier of printing solutions, including laser and inkjet
printers, multifunction products and associated supplies and
services for offices and homes.  The company also markets dot
matrix printers for printing single and multi-part forms for
business users and develops, manufactures and markets a broad
line of other office imaging products.

LXK - Lexmark Intl.  $65.89

PLAY (conservative - bullish/credit spread):

BUY  PUT  APR-55.00  LXK-PK  OI=914   A=$0.40
SELL PUT  APR-60.00  LXK-PL  OI=1640  B=$0.85
POTENTIAL PROFIT(max)=9% B/E=$59.55

SLM - SLM Corporation  $110.21  *** New 52-Week High! ***

SLM Corporation (NYSE:SLM), formerly USA Education, is a private
source of funding, delivery and servicing support for higher
education loans for students and their parents in the United
States.  SLM provides a range of financial services, processing
capabilities and information technology to meet the needs of
educational institutions, lenders, students and guarantee
agencies.  The company's managed portfolio of student loans,
including loans owned and loans securitized, totals over $70
billion, of which the majority is federally insured.  The firm
also has commitments to buy billions of dollars of additional
student loans.  Primarily a provider of education credit, the
company serves a diverse range of clients, including over 6,000
educational and financial institutions and guarantee agencies.
The company serves in excess of seven million borrowers through
its ownership or management of student loans.

SLM - SLM Corporation  $110.21

PLAY (very conservative - bullish/credit spread):

BUY  PUT  APR-95.00   SLM-PS  OI=1776  A=$0.65
SELL PUT  APR-100.00  SLM-PT  OI=705   B=$1.00
POTENTIAL PROFIT(max)=8% B/E=$99.60




These stocks have momentum-based trends and favorable option
premiums.  Traders with a directional outlook on the underlying
issues may find the risk-reward outlook in these plays attractive.

GGP - General Growth Properties  $54.02  *** Rally Mode! ***

General Growth Properties (NYSE:GGP) is the country's second
largest shopping center owner, developer and manager of regional
shopping malls.  General Growth currently has ownership interests
in, or management responsibility for, a portfolio of 160 regional
shopping malls in 39 states.  The company's real estate portfolio
totals approximately 140 million square feet of retail space and
includes over 16,000 retailers nationwide.

GGP - General Growth Properties  $54.02

PLAY (very speculative - bullish/synthetic position):

BUY  CALL  APR-55.00  GGP-DK  OI=198  A=$0.65
SELL PUT   APR-50.00  GGP-PJ  OI=184  B=$0.50

Note:  Using options, the position is similar to being long the
stock.  The minimum initial margin/collateral requirement for the
sold option is approximately $1,815 per contract.  However, do not
open this position if you can not afford to purchase the stock at
the sold put strike price ($50).



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.


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.

IGEN - IGEN International  $33.38  *** Premium-Selling Only! ***

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  $33.38

PLAY (sell naked call):

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

SELL CALL  APR 45   GQ DI    1,247   0.55  45.55   7.7%    1.2% *
SELL CALL  APR 42.5 GQ DV      420   0.85  43.35  11.5%    2.0%
SELL CALL  APR 40   GQ DH    1,616   1.25  41.25  15.9%    3.0%

MCHP - Microchip Technology  $21.50  *** Earnings Warning! ***

Microchip Technology (NASDAQ:MCHP) develops and manufactures
specialized semiconductor products used by its customers for a
wide variety of embedded control applications.  The company's
product portfolio comprises field-programmable RISC-based
microcontrollers that serve 8- and 16-bit embedded control
applications, and a broad spectrum of high-performance linear
and mixed-signal, power and thermal management devices.  The
company also offers complementary microperipheral products,
including interface devices, serial EEPROMS, and its patented
KEELOQ security devices.  The firm markets its products to the
automotive, communications, computing, consumer and industrial
control markets.

MCHP - Microchip Technology  $21.50

PLAY (sell naked call):

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

SELL CALL  MAR 22.5 QMT CX   7,056   0.15  22.65  29.4%    0.7% TS
SELL CALL  APR 25   QMT DE   5,914   0.40  25.40   7.4%    1.6% *
SELL CALL  APR 22.5 QMT DX   2,899   1.10  23.60  12.8%    4.7%



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.

BHI - Baker Hughes  $30.13  *** Trading Range? ***

Baker Hughes (NYSE:BHI) is engaged in the oilfield and process
industries.  The company also manufactures and sells products
and provides services to industries that are not related to the
oilfield or continuous process industries.  The Oilfield segment
consists of six operating divisions: Baker Atlas, Baker Hughes
INTEQ, Baker Oil Tools, Baker Petrolite, Centrilift and Hughes
Christensen.  The company, through its Oilfield segment, is a
supplier of wellbore-related products, technology services and
systems and provides equipment, products and also services for
drilling, formation evaluation, completion and production of
oil and gas wells.  The Process segment consists of two operating
divisions: EIMCO Process Equipment and BIRD Machine.  Through its
Process segment, the Company manufactures, markets and services a
broad range of separation and treatment solutions and continuous
and batch centrifuges and specialty filters.

BHI - Baker Hughes  $30.13

PLAY (conservative - bearish/credit spread):

BUY  CALL  APR-35.00  BHI-DG  OI=5352  A=$0.20
SELL CALL  APR-32.50  BHI-DZ  OI=2573  B=$0.45
POTENTIAL PROFIT(max)=11% B/E=$32.75

INTU - Intuit  $50.44  *** Sell The Rally! ***

Intuit (NYSE:INTU) is a provider of business tax preparation and
personal finance software products and Web-based services that
simplify complex financial tasks for consumers, small businesses
and accounting professionals.  The company's principal products
and services include Quicken, QuickBooks, Quicken TurboTax,
ProSeries, Lacerte and Quicken Loans. Intuit offers products and
services in five principal business divisions, which include Small
Business, Tax, Personal Finance, Quicken Loans and Global Business.

INTU - Intuit  $50.44

PLAY (conservative - bearish/credit spread):

BUY  CALL  APR-60.00  IQU-DL  OI=2892  A=$0.20
SELL CALL  APR-55.00  IQU-DK  OI=2431  B=$0.70
POTENTIAL PROFIT(max)=11% B/E=$55.55

OMC - Omnicom  $53.96  *** Downtrend Intact? ***

Omnicom Group (NYSE:OMC) is a worldwide marketing and corporate
communications company.  Omnicom has grown its strategic holdings
to over 1,500 subsidiary agencies operating in over 100 countries.
The firm's wholly and partially owned businesses provide a range
of communications services to clients on a global, pan-regional
and national basis.  The company's agencies provide an extensive
variety of marketing and corporate communications services, as
well as advertising, brand consultancy, crisis communications,
custom publishing, database management, digital and interactive
marketing, direct marketing, directory and business-to-business
advertising, employee communications and environmental design.
Omnicom also provides field marketing, healthcare communications,
marketing research, media planning and buying, multi-cultural
marketing, non-profit marketing, promotional marketing, public
affairs, public relations, recruitment communications, specialty
communications and sports and event marketing.

OMC - Omnicom  $53.96

PLAY (conservative - bearish/credit spread):

BUY  CALL  APR-65.00  OMC-DM  OI=1017  A=$0.25
SELL CALL  APR-60.00  OMC-DL  OI=1896  B=$0.70
POTENTIAL PROFIT(max)=11% B/E=$60.50





Techs Anchor Rally

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

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PO Box 630350
Littleton, CO 80163

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