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Daily Newsletter, Wednesday, 04/23/2003

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The Option Investor Newsletter                Wednesday 04-23-2003
Copyright 2003, All rights reserved.                        1 of 2
Redistribution in any form strictly prohibited.


In Section One:

Wrap: Distribution Zone or Consolidation?
Futures Wrap: Pushing the Limits
Index Trader Wrap: (see note)
Weekly Fund Family Profile: Nations Funds


Posted online for subscribers at http://www.OptionInvestor.com
*******************************************************************
MARKET WRAP  (view in courier font for table alignment)
*******************************************************************
        04-23-2003        High      Low     Volume Advance/Decline
DJIA     8515.66 + 30.67  8526.38  8451.45 2060 mln   2032/1252
NASDAQ   1466.16 + 14.80  1468.08  1447.65 1893 mln   1925/1185
S&P 100   467.31 +  4.23   467.85   462.25   totals   3957/2437
S&P 500   919.02 +  7.65   919.74   909.89
RUS 2000  394.97 +  3.81   395.01   391.16
DJ TRANS 2374.00 + 22.04  2376.49  2343.20
VIX        23.49 -  0.02    24.51    23.31
VXN        33.13 -  0.52    34.32    32.97
Put/Call Ratio      0.63
*******************************************************************

Distribution Zone or Consolidation?
Jonathan Levinson

The indices made relatively small moves higher on very
respectable volume today, accomplishing a larger transfer of
shares following yesterday's strong gains.  The consolidation and
lack of pullback was admittedly not-bearish, but tomorrow will be
an important test of today's gains.

Chart of the INDU




Chart of the COMPX




The Dow broke above round number resistance at 8500, while the
COMPX tried but could not top 1467 resistance.  Both indices
closed near their highs of the day, well within range for either
an opening gap above today's highs or a failure below significant
resistance.  With no sell signals on the admittedly toppy
oscillators and bear wedges printed this month, the stage is set
for a battle royale between bulls and bears at current levels.
Note that the COMPX is trading well-clear of the crucial 1430
resistance level and its 200 day ema, giving the bulls plenty to
celebrate.

The markets opened with light selling in treasury bonds that
persisted until 10:30, when yields flipped briefly to red.  The
put to call ratio opened at its low of the day, .55, bounced up
to .70 from there, and then drifted in the mid .60s for the
remainder of the day, well off its levels above 1.20 seen through
much of yesterday.  The bearishness that these readings implied
was entirely absent, as the markets marched stubbornly higher
with only a shallow pullback in the mid-afternoon commencing
about 20 minutes prior to the release of the Beige Book report.
Treasuries closed only slightly lower, with FVX +1.1 bps, TNX
+1.2 bps and the TYX unchanged.  My guess is that the fed added
some thirties to its growing portfolio, but that's a topic for
another time.

The early morning's economic data were not positive, with
mortgage applications falling from 376.1 to 359.9 (4.3%) this
week and the Refi index falling from 5546.7 to 5103.9 (7.9%), for
a 5th straight week of declines.  However, the Energy Department
reported a rise in crude stocks of 9 million-barrels for the week
ended April 18, bringing total US inventories to 286.2 million
barrels, 12.7 percent below their year-ago level.  Analysts had
expected crude stocks to rise 3 million barrels.  June crude fell
$1.31 to close at $26.68 a barrel.

The Beige Book was released at 2PM, in which the fed reported
that the US economy's continued "softness" was exacerbated by war
concerns and bad weather.  Retail sales were weak, and
manufacturing activity fell in 9 of 12 districts.  5 of 12
districts reported weakening economic conditions since February.
Unemployment remained persistent.

The fed sat on the fence today, adding $4B in overnight
repurchase agreements to refund the maturing $4B in overnight
repos from yesterday.  Around the same time, the White House
issued a release requesting Al Green's response on the
President's offer to renew his term.  As Jim pointed out, it
might have been appropriate to wait for the painkillers from
yesterday's prostate surgery to wear off before publicly pressing
the 77 year old man for a response to yesterday's offer.  After
the bell, Mr. Greenspan replied, "If President Bush nominates me,
and the Senate confirms his choice, I would have every intention
of serving."

Earnings were fast and furious.  To name a few, we saw positive
intraday corporate results from T, BLS, LU, BA, XRX, NXTL, KRB,
and SIAL, and negative news from PSFT and EK.   BUD met
estimates.  Blake Bath at Lehman Bros upgraded T later in the
day, with MRK downgraded by GS to "inline", citing valuation
concerns.

After the bell, we had announcements from AWE, which announced
earnings of 5 cents per share vs. 2 cents estimated.  QCOM beat
estimates by 2 cents per share, earning 38 cents per share on a
pro forma basis.  The stock was trading up 2.19% after hours.
FDRY was up .37% after hours after beating analyst estimates of 9
cents by 2 cents.  KLAC earned 14 cents, also beating by 2 cents
on revenue of 304M, which was inline with estimates but showing a
decline in net revenues and earnings compared with the same
period last year.  The stock was down -0.29% after hours.  SYMC
beat by a penny and increased revenue from 3 cents a share last
year to 41 cents but got smoked for -3.15% after hours.  Overall,
QQQ was down 5 cents in after hours trading, with S&P June
futures trading 917.50 and NDX June futures 1113.50 at 4:30PM.

Led by Assistant Secretary of State James Kelly, the US
delegation began its three-day talks with North Korea and China
in Beijing to discuss Pyongyang's alleged nuclear weapons
program.  These are the first talks between North Korea and the
US since the latter accused the former of having a nuclear
weapons program 6 months ago.

The US warned Iran to stay out of Iraq following news that
Iranian agents were active in southern Iraq among Shiites and
Iranians in the promotion of Iran's interests.

The SARS story worsened today, as the WHO increased its travel
warnings, advising against non-essential travel to Toronto,
Beijing, and Shanxi Province.  There was talk of significant
differences in the genetic code of different samples of the
virus, pointing to mutation of the virus.  More deaths and new
cases were announced as well.  After the bell, the Major League
Baseball announced that it would be advising players visiting
Toronto to refrain from signing autographs and mingling with
crowds.  Increasingly, focus seems to be being drawn to the
economic impact of the disease, but it has yet to noticeably
affect any of the US indices.

Unfortunately, the story remains the same as yesterday.  The
indices, led by the COMPX, have come very far, very fast.
Whether you are bearish or bullish, some pullback is expected.
The confidence of bullish traders is demonstrated most clearly in
the volatility indices, of which the VIX is a fine example.  Just
as there are currently no sell signals on the INDU or COMPX,
there are no "buy" signals on the VIX, as complacency reflected
in collapsing option premiums continues to reign.

Chart of the VIX




For tomorrow, we have Initial Claims before the bell, last week's
number 442,000, as well as Durable Goods Orders for March, forecasted
to come in at a -1.0% decline, previous reading of -1.6%.  The Help
Wanted Index is forecast at 40, previous reading of 40.  These reports
will doubtless be definitive in setting up tomorrow's opening bias.
Capital preservation should remain our prime directive as the market
decides whether to extend its rally or reverse it.  I would be shocked
to see a repeat of today's relatively narrow range, and so either way,
tomorrow should provide some answers as to which direction the market
wants to take next.


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

Pushing the Limits
By Jim Brown

      04-23-2003           High     Low
DJIA     8515.66 + 30.67  8526.38  8451.45
NASDAQ   1466.16 + 14.80  1468.08  1447.65
S&P 500   919.02 +  7.65   919.74   909.89
NDX      1112.93 + 10.49  1115.67  1096.92
ES03M     917.50 +  7.50   919.50   908.50
YM03M    8495.00 + 37.00  8509.00  8426.00
NQ03M    1113.50 +  8.50  1118.00  1073.50

Daily Pivots (rounded to nearest point)
           R2     R1    Pivot   S1     S2
DJIA      8572   8544   8498   8469   8423
COMPX     1481   1474   1461   1453   1440
ES03M      926    922    915    911    904
YQ03M     8559   8527   8477   8444   8394
NQ03M     1146   1130   1102   1085   1057

The markets were much more bullish today than they would appear on
the surface. We had over four billion shares traded with 1.8B on
the Naz, 2.0B on the NYSE. Up volume was nearly 5:1 over down
volume. The biggest miracle of all was the lack of movement and
the peg on the prior resistance highs. They simply refused to fall
despite not being able to push over the resistance highs. I
thought it was a bullish day despite the only +30 point Dow gain.
It remains to be seen if the buying was new longs entering the
market or shorts covering positions.

The ES traded in a narrow 10 point range between 909 and 919 and
closed very near the highs of the day. They are down in after
hours to 916 due to some weak guidance by software and chip
stocks. There is strong resistance dating back to a down trend
from July-2000 at 920 and could likely be trouble for Thursday.

ES03M Chart - 15 min




The NQ performed very well and traded in a 17 point range above
support at 1100. The 1100 level had been resistance for weeks and
now over it is acting as support. Resistance for the NDX is 1145-
1155 giving it plenty of room to run if the Nasdaq Compx can get
over 1467. That is the critical resistance holding it back.

NQ03M Chart - 60 min




The Dow futures have come to a screeching halt at 8500. This
equates to the 8520 level on the cash and this is strong
resistance for both.  The 8430 level is critical to the Dow
futures as support. A failure of that level would put the strong
gains from Tuesday in danger.

YM03M Chart - 30 min




The following charts show the strong resistance for the Dow
futures at 8500 and the cash at 8520. This is a critical level for
the rest of the week.

Dow Futures - 240 min




Dow Cash - 240 min





The MOST critical resistance is the longer term down trend on the
S&P cash that is resistance at 920. There is considerable interest
in shorting that level. Each time we got close today the number of
sellers rose dramatically.

If I had to pick one critical point to watch it would be this one.
Without a breakout here we are not going up on any index.

S&P Cash - Weekly




The game plan for Thursday would be to SHORT a drop under ES 908
and go LONG on any bounce over 920. Anything in the middle is
dangerous.

Jim Brown


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

Check the Site Later Tonight For Jeff’s Index Trader Article
http://members.OptionInvestor.com/itrader/marketwrap/iw_042303_1.asp


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

Nations Funds

The Nations Funds, owned by Bank of America today, is the fourth
largest U.S. management group, with $146 billion in total assets
across over 200 mutual funds.  The Nations Funds family of funds
is advised by Banc of America Capital Management LLC, a non-bank
affiliate of Bank of America.  Banc of America Capital Management
and its affiliates manage more than $267 billion in total assets
today, including the assets of the Nations Funds family of funds.

The acquisition by Bank of America gave Nations Funds the scale
and leverage they wanted to be competitive with the top guns in
the business, as well as the ability to provide a wide spectrum
of choices to help investors meet their various financial goals.
The Nations Funds family of funds covers all major asset classes
including domestic and foreign stocks, bonds, and money markets.

The Nations Funds family of funds is available in Class A, B and
C shares, which vary in their load structure and expense ratios.
These share classes have a low $1,000 minimum initial investment
and may be purchased through your investment advisor or directly
from Nations Funds.  For more information, call 800-321-7854, or
visit the Nations Funds website at www.nationsfunds.com.

Fund Overview

If you treat all share classes of the same fund as one fund, the
Nations Funds family consists of 55 different mutual funds (if I
counted correctly) investing across all major asset and subasset
classes.  We'll talk about a few of them in this section and let
you do more due diligence if you want.

In the domestic equity fund group, the two most successful funds
based on net assets are the $1.6 billion Nations Marsico Focused
Equities Fund, managed by former Janus star Tom Marsico, and the
team-managed, Nations Strategic Growth Fund, a $1.7 billion fund.
Tom Marsico also manages the $579 billion Nations Marsico Growth
Fund.  All three portfolios are categorized as "large-cap growth"
funds per Morningstar.

While most of the U.S. equity funds are growth-driven, there are
a couple of value-driven products to choose from.  Nations Value
Fund and Nations Classic Value Fund, two large-cap value choices,
have $855 million in total assets between the two funds.  If you
seek the greater potential appreciation of small-cap and mid-cap
stocks, the Nations Funds family of funds also offers funds that
specialize in those capital sectors.  The equity lineup includes
a large-cap index and a small-cap index fund.  So, investors can
choose from both active and passive equity investment strategies.

The Nations Funds family of funds also offers different types of
hybrid funds, with different objectives and risk-reward profiles.
Nations Asset Allocation Fund is a typical asset allocation fund,
which seeks total return by allocating assets between stocks and
bonds and cash.  The $845 million Nations Convertible Securities
Fund, as its name implies, invests in convertible securities and
offers investors a relatively safe way to play the equity market.
There are also three "LifeGoal" portfolios offering various risk
and reward tradeoffs, designed for investors at different stages
of their lifepath.  These funds of funds invest in other Nations
Funds equity and fixed income funds in different combinations to
achieve the fund's objective and desired risk characteristics.

In the international equity fund group, the Nations Funds offers
a global stock fund, three foreign stock funds, and one emerging
market fund.  The $583 million Nations International Equity Fund
and the $100 million Nations Marsico International Opportunities
Fund invest primarily in the common stocks of large, established
growth companies located outside the United States.  The Nations
Global Value Fund and Nations International Value Fund also have
large-cap biases, according to Morningstar, but invest primarily
in undervalued stocks.  At $2.3 billion in total assets, Nations
International Value Fund is the largest and most successful fund
in the international equity group.

The Nations Fund family of funds includes several "taxable" bond
funds to pick from.  The $2.5 billion Nations Bond Fund seeks to
provide high current income through investments in corporate and
government bonds with intermediate-term and long-term maturities.
There's also an intermediate-term investment-grade bond fund and
a short-term investment-grade bond fund for investors who desire
less interest rate sensitivity.  In addition to offering general
bond funds, the Nations Funds also offers a long-term government
fund and a short/intermediate-term government fund for investors
who desire the highest credit quality.  The $209 million Nations
Strategic Income Fund is a multi-sector bond fund, which invests
in all sectors of the bond market, including low quality, higher-
yielding securities.

In the next section, we tell you which Nations Funds we like the
best now based on their relative return, risk, cost, and expense,
as well as other factors such as style, strategy and fund manager
tenure.

Our Favorite Funds

In the domestic equity fund group, we like the long-term chances
of the Nations Marsico Focused Equities Fund, a large-cap growth
fund that was recently upgraded to top Morningstar return rating
and is now 5-star rated, Morningstar's highest star rating based
on relative risk-adjusted return performance.  The fund is up 5%
so far this year, in line with other large-cap growth funds, but
over the long term, the fund has produced high returns with just
average risk relative to other large-cap growth funds, according
to Morningstar.






For the trailing 5-year period through April 22, 2003, Nations
Marsico Focused Equities Fund, Class A (NFEAX) produced a 1.4%
average annual return for investors, ranking in the top decile
within the Morningstar large-cap growth category.  Morningstar
indicates that the average large-cap growth fund lost 4.7% per
year on average over the same time period.  That means Marsico
outperformed the category average by an average of 6.1% a year
over the most recent 5-year period.

Marsico's excellent 5-year record includes years 1998 and 1999,
when he produced back to back annual returns of over 50 percent.
Equally as important, Marsico has held preserved capital better
than his large-growth peers over the past three years, with the
market's slump.  His 12.6% annualized loss in the 3-year period
ranked near the category's top decile as well.  Long-term, risk
tolerant investors have a solid classic growth fund here in the
Nations Marsico Focused Equities Fund.

In the international stock class, we like the long-term chances
of the Nations International Value Fund, a Morningstar "4-star"
rated fund that it says is one of the more attractive offerings
in the broad peer group.  The fund's management team emphasizes
stocks of companies with larger market capitalizations that are
trading below estimates of their intrinsic values.  They invest
in emerging-market equity securities as well for greater return
potential.






Like Marsico Focused Equities Fund, Nations International Value
Fund has done well over the long term relative to similar funds.
For the trailing 5-year period ended April 22, the fund produced
a positive average annual total return of 1.1%, strong enough to
rank in 6th percentile of the Morningstar foreign stock category.
For comparative purposes, the average foreign stock fund fell at
an annual-equivalent rate of 5.7% during the same period of time.

The Nations International Value Fund rose 52.4% in 1999 when go-
go growth stocks were in favor, so it has the potential to "keep
up" with the pack in growth-led markets.  It may be riskier than
some international value funds, but it has compensated investors
well for the additional risks incurred by the fund.

In the taxable bond fund group, we'd be inclined to go with the
Nations Short-Term Income Fund today with rates at 40-year lows
and potentially going higher from here.  The Nations Short-Term
Income Fund gone up at an annual-equivalent rate of 5.5% during
the past decade, per Morningstar, producing average returns and
average risk relative to other short-term bond funds.  It isn't
flashy, but it has achieved the fund's income objective for the
most part.

Bond investors seeking more yield and potentially greater total
returns may wish to consider the Nations Strategic Income Fund,
which strategically allocates assets to various sectors of the
bond market based on their outlook for the economy, rates, etc.
This team-managed fund invests in a broad variety of corporate,
government and government-agency securities, and may put up to
35% of total assets in securities rated below investment grade.

Conclusion

If you explore further, you may find other funds that you feel
may be appropriate for your financial goals, time horizon, and
risk tolerance.  Nations Funds family of funds gives investors
exposure to different asset classes and to various styles and
strategies within each asset class to help investors achieve a
variety of financial needs.

If you want to invest in the Nations Funds stock and bond funds
but don't know what funds to pick and how much to put into each
fund, you may want to consider one of the "LifeGoal" Portfolios.
The Nations LifeGoal Growth Portfolio seeks capital appreciation
through exposure to a variety of stock market segments.  Nations
LifeGoal Balanced Growth Portfolio seeks total return consistent
with a balanced portfolio of equity and fixed income securities.

A third asset allocation portfolio, the Nations LifeGoal Income
and Growth Portfolio, seeks current income and modest growth to
protect against inflation and to preserve purchasing power.  It
is the most income-oriented of the three Nations LifeGoal funds.
For more information on the LifeGoal asset allocation funds and
other Nations Funds mutual funds, go to the www.nationsfunds.com
website.

Steve Wagner
Editor, Mutual Investor
steve@mutualinvestor.com


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The Option Investor Newsletter                Wednesday 04-23-2003
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 - ERTS
Big Cap Covered Calls & Naked Puts: No "Sell The Rally" Activity...
At Least Not Yet!
Market Watch: Cable, Hardware & Beer


Updated on the site tonight:
Market Posture: New NASDAQ High for 2003


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STOP-LOSS UPDATES
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None


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DROPPED CALLS
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None


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DROPPED PUTS
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None


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*********************
PLAY OF THE DAY - PUT
*********************

Electronic Arts - ERTS - cls: 60.99 chg: -0.63 stop: 58.00

-Company Description-
ERTS creates, markets and distributes interactive entertainment
software for a variety of hardware platforms, including Sony's
PlayStation 2, the PC, Nintendo GameCube and the recently
launched Xbox. The company's EA.com business segment is engaged
in the creation, marketing and distribution of entertainment
software which can be played or sold online, as well as the
ongoing management of subscriptions of online games and Website
advertising.

- Why We Like It (Thursday, April 17th)-
Reports last year that the video gaming industry was in the early
stages of an 8-10 year boom cycle drove stocks like ERTS to new
all-time highs near $72. But the spectre of a weak economy and a
consumer with less willingness to part with discretionary dollars
finally put the bite on the stock, driving it all the way back
down to major support near $48 by the middle of January. After
basing in that area for the better part of 2 months, ERTS started
gradually climbing higher. The bullish rebound really got moving
once the stock clawed its way back over the $55 level, but ran
into dual resistance at the descending trendline from the October
2002 highs as well as the 200-dma, both near $60 in mid-March. A
big part of the stock's ability to hang tough has to do with the
fact that revenue and earnings continue to grow at a healthy
clip, as demonstrated by the blowout results announced at the end
of January. The company produced its best quarter ever, both in
terms of revenue and earnings and while Q1 is always the
strongest quarter for the industry, investors are likely looking
forward to continued strong performance.

The breakout over $55 generated a powerful Buy signal on the PnF
chart, and that was good enough to lead ERTS up to the $60 level.
But that was the location of the bearish resistance line, and is
so often the case, the first test of bearish resistance proved
painful for the bears. But rather than show any weakness, the
stock has consolidated its gains, finding consistent support near
the $57 level and appears to be showing bullish signs again,
riding an aggressive ascending trendline from the February lows.
Thursday's rally began above the broken descending trendline, and
then took ERTS back through the 200-dma, and right up to the $60
level again. While it looks like the stock wants to break out, we
don't want to get sucked into the play right at the top of the
recent range, if the bulls can't show the conviction necessary
for a clean breakout. So we're going to set a trigger of $61.25
on the play. This is just slightly above the high on April 2nd,
and a rally through that level would likely be a precursor to a
run at the next serious level of resistance near $65. That
initial breakout can be used for an aggressive entry into the
play, while more conservative traders will want to wait for a
subsequent pullback to confirm newfound support near $59.50-
60.00. With daily Stochastics already looking a bit toppy, we
want to give the play some room to move, so our initial stop is
set at $57, just below the lowest closing level on the most
recent pullback.

- Most Recent Update (Tuesday, April 22nd) -
There's been a lot of talk about video games lately, especially
now that the war is over and how corporate America is going to
try and market some of the terms and ideas from the war. Whether
or not you believe this is a kosher way to do business, if anyone
can make money on it the video game industry would be the best
bet. We are not saying that ERTS is trying to market anything
related to Operation Iraqi Freedom but when investors do think
video games the first stock that comes to mind is ERTS. They are
the big dog in the industry. No one is even close to them. The
powerful move in the markets and the software sector today helped
boost shares of ERTS above their resistance at $61 and
OptionInvestor.com was triggered when ERTS traded at $61.25. Our
short-term target is $65.00 and we're raising our stop to $58.00.
Should the markets or the sector see a pull back a dip to $60.00
might be a good bet on new bullish entries.

- Suggested Options -
The May 60 Call will offer short-term traders the best return on
an immediate move, with manageable risk. Traders who desire a bit
more insulation from time decay, while still reaping the benefits
of using an ITM option will want to use the June 60 Call.

Longer Term: Traders looking to capitalize on a sustained
breakout move over the $61 level will want to look to the May 65
Call or even the June 65 Call. These options are currently out of
the money, but should provide sufficient time for the stock to
move higher without time decay becoming a dominant factor over
the short run.

BUY CALL MAY-60 EZQ-EL OI=3340 at $2.65 SL=1.25
BUY CALL MAY-65 EZQ-EM OI=3235 at $0.65 SL=0.30
BUY CALL JUN-60 EZQ-HH OI=4510 at $3.90 SL=2.00
BUY CALL JUN-65 EZQ-HH OI=8357 at $1.55 SL=0.75

- Play-of-the-Day comments -
The GSO software index looks like it's getting ready to break out
above its March 2003 highs.  Should this occur then ERTS is
likely to follow suit.  If, on the other hand, we see a round of
profit taking and the GSO pulls back from resistance, then ERTS
will most likely see some profit taking as well.  If tomorrow is
bullish we like potential entries at current levels.  If we see
some weakness, then traders can look for a dip to the $60 mark as
an entry.

Annotated Chart of ERTS:
http://www.OptionInvestor.com/oin/images/commentary/newsletter/2003-04-23/ERTS042303.gif


Picked on April 20th at  $60.04
Change since picked:      +0.95
Earnings Date          05/08/03 (unconfirmed)
Average Daily Volume = 3.36 mln


------------------------------------------------------------
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  Contingent, Stop Loss, Trailing stop, or OCO
  8 different online tools for options pricing, strategy, and charting

Go to http://www.optionsxpress.com/marketing.asp?source=oetics25

Note: Options involve risk. Risk disclosure:
http://www.optionsxpress.com/welcome_risk_index.htm
------------------------------------------------------------


***************
PREMIUM SELLING
***************

No "Sell The Rally" Activity...At Least Not Yet!
By Ray Cummins

U.S. stocks moved higher Wednesday as optimistic outlooks from
a number of bellwether issues prompted investors to search for
bargains in blue-chip shares.

Dow component AT&T (NYSE:T) led the industrial group, up over
15% after the company reported robust first-quarter net income
and said it expects to "meet or exceed" its revenue growth and
operating margin forecasts.  The Dow industrial average closed
up 30 points at 8,515, its gains limited by losses in Eastman
Kodak (NYSE:EK), which fell 5% to $30 after announcing that its
full-year results could be at the low end of consensus estimates.
The NASDAQ Composite added 14 points to finish at 1,466 with
semiconductor and telecom stocks among the best performers.  The
S&P 500 stock index climbed 7 points to 919 as oil service and
equipment, biotechnology and drug shares enjoyed buying pressure.
Both the S&P 500 and the NASDAQ achieved three-month highs as
investors hoped for indications of improvement in business and
consumer spending.  Trading volume on the Big Board was above
1.6 billion, with advancers outpacing decliners 5 to 3.  Volume
on the NASDAQ was 1.8 billion with technology winners ousting
losers 3 to 2.  In the bond market, the benchmark 10-year note
was down 4/32, pushing its yield up to 3.98%.

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

SUMMARY OF CURRENT POSITIONS - AS OF 4/22/03

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

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 "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

AVID     MAY    20   19.50  27.24   $0.50   5.89%   2.56%
ERES     MAY    22   21.90  28.28   $0.60   6.03%   2.74%
JCOM     MAY    25   24.70  30.70   $0.70   6.83%   2.83%
RYL      MAY    42   41.50  51.17   $1.00   4.45%   2.41%
AVID     MAY    20   19.70  27.24   $0.30   4.53%   1.52%
CTSH     MAY    18   17.27  19.89   $1.10   14.54%  6.37%
JCOM     MAY    22   21.80  30.70   $0.70   8.33%   3.21%
ADI      MAY    25   24.65  32.73   $0.35   4.94%   1.42%
BBY      MAY    27   27.00  33.94   $0.50   5.32%   1.85%
KLAC     MAY    32   32.05  41.86   $0.45   4.64%   1.40%
LLTC     MAY    27   27.15  35.94   $0.35   4.45%   1.29%
MSTR     MAY    22   22.00  30.11   $0.50   7.92%   2.27%
SLAB     MAY    22   22.15  29.44   $0.35   5.63%   1.58%
XLNX     MAY    22   21.90  26.91   $0.60   7.82%   2.74%


Naked Calls
***********

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

CCMP     MAY    50   50.70  47.14   $0.70   5.44%  1.38%
MERQ     MAY    37   37.95  35.96   $0.45   5.59%  1.19%
QLGC     MAY    42   43.40  43.10   $0.30   2.25%  2.07% *
IGEN     MAY    45   45.50  34.63   $0.50   6.90%  1.10%
QCOM     MAY    35   35.85  33.21   $0.85   7.39%  2.37%

The bearish play in Qlogic (NASDAQ:QLGC) has been closed
to limit potential losses.  Cabot Micro (NASDAQ:CCMP) and
Mercury Interactive (NASDAQ:MERQ) are on the "early-exit"
watch-list.


Put-Credit Spreads
******************

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

BBH     97.50  98.40   MAY   85  90  0.60  89.40  $0.60  Open
CAT     51.71  52.96   MAY   45  47  0.30  47.20  $0.30  Open
RYL     47.52  51.17   MAY   40  42  0.25  42.25  $0.25  Open
VIP     37.73  38.76   MAY   30  35  0.60  34.40  $0.60  Open
EVG     47.07  49.79   MAY   40  45  0.50  44.50  $0.50  Open
KRON    43.41  45.90   MAY   35  40  0.45  39.55  $0.45  Open
TBL     47.84  52.00   MAY   42  45  0.25  44.75  $0.25  Open


Call-Credit Spreads
*******************

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

APC     46.05  46.62  MAY  55  50   0.50  50.50  $0.50   Open
ATK     53.08  52.93  MAY  65  60   0.45  60.45  $0.45   Open
TOT     65.30  68.30  MAY  75  70   0.65  70.65  $0.65   Open
CAH     56.55  57.64  MAY  65  60   0.80  60.80  $0.80   Open
GM      34.48  37.13  MAY  40  37   0.30  37.80  $0.30   Open
MXIM    35.51  41.11  MAY  45  40   0.75  40.75 ($0.36) Closed
MHP     56.65  59.73  MAY  65  60   0.65  60.65  $0.65   Open
DGX     56.70  56.50  MAY  65  60   0.85  60.85  $0.85   Open
EASI    37.91  36.84  MAY  43  40   0.50  40.50  $0.50   Open
MMM    129.00 129.75  MAY  140 135  0.80 135.80  $0.80   Open

The bearish spread in Maxim Integrated Products (NASDAQ:MXIM)
has been closed to limit potential losses.  General Motors
(NYSE:GM) and McGraw-Hill (NYSE:MHP) are on the "early exit"
watch-list and conservative traders should consider closing
those spreads on any further upside movement.

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.

***************
AVCT - Avocent  $31.05  *** All-Time High! ***

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 switching
and connectivity solutions provide information technology managers
with access and control of multiple servers and network data centers
from any location.

AVCT - Avocent  $31.05

PLAY (sell naked put):

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

SELL PUT  MAY 27.5  QVX QY     214    0.30  27.20   4.3%   1.1% *
SELL PUT  MAY 30    QVX QF     298    1.10  28.90  11.7%   3.8%


**************
CELG - Celgene  $26.79  *** Bullish Outlook! ***

Celgene (NASDAQ:CELG) is a commercial-stage biopharmaceutical
company.  The company is primarily engaged in the discovery,
development and commercialization of small molecule drugs that
are designed to treat cancer and immunological diseases through
gene and protein regulation. Small molecule drugs are man-made,
chemically synthesized drugs that, because of their relatively
small size, can typically be administered orally.  The firm's
drugs are designed to modulate multiple disease-related genes,
including cytokines (which are proteins) such as Tumor Necrosis
Factor alpha, or TNF(alpha), growth factor genes such as those
that control angiogenesis, blood vessel formation and apoptosis
genes.  Because the company's drugs can be administered orally,
they have the potential to advance the standard of care beyond
current injectible protein drugs that inhibit TNF (alpha) and
other disease-causing cytokines.

CELG - Celgene  $26.79

PLAY (sell naked put):

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

SELL PUT  MAY 22.5  LQH QX   2,761    0.35  22.15   6.8%   1.6% *
SELL PUT  MAY 25    LQH QE   2,111    0.85  24.15  11.5%   3.5%


**************
COF - Capital One  $39.07  *** 6-Month High! ***

Capital One Financial (NYSE:COF) is a holding company whose major
subsidiaries market a variety of financial products and services
to consumers using its proprietary information-based strategy.
The company's primary business is consumer lending, with a focus
on credit cards, but including other consumer lending activities
such as unsecured installment lending and automobile financing.
The company's principal subsidiary, Capital One Bank, a limited
purpose, state-chartered credit card bank, offers credit card
products.  Capital One, F.S.B., a federally chartered bank, offers
consumer lending and deposit products.  Capital One Services, the
other major subsidiary, provides various operating, administrative
and business services to the company and its subsidiaries.

COF - Capital One  $39.07

PLAY (sell naked put):

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

SELL PUT  MAY 35    COF QG   7,532    0.50  34.50   5.5%   1.4% *
SELL PUT  MAY 37.5  COF QU   2,977    1.00  36.50   8.8%   2.7%


**************
ERES - eResearch Technology  $29.50  *** All-Time High! ***

eResearch Technology (NASDAQ:ERES) is a provider of technology and
services that enable the pharmaceutical, biotechnology and medical
device industries to collect, interpret and distribute cardiac
safety and clinical data more efficiently.  The company offers a
range of products and services, including Diagnostics Technology
and Services and Clinical Research Technology.  Their Diagnostics
Technology and Services include centralized diagnostic services
and clinical research operations, including clinical trial and
data management services.  Their Clinical Research Technology and
Services include the developing, marketing and support of clinical
research technology and services.

ERES - eResearch Technology  $29.50

PLAY (sell naked put):

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

SELL PUT  MAY 25    UDB QE     276    0.35  24.65   6.1%   1.4% *
SELL PUT  MAY 27.5  UDB QY     941    1.25  26.25  15.0%   4.8%


**************
ICOS - ICOS Corporation  $25.80  *** Rally Mode! ***

ICOS Corporation (NASDAQ:ICOS) develops pharmaceutical products
with significant commercial potential by combining its unique
capabilities in molecular, cellular and structural biology,
high-throughput drug screening, medicinal chemistry and gene
expression profiling.  The firm applies its integrated approach
to erectile dysfunction and other urologic disorders, sepsis,
pulmonary arterial hypertension and cardiovascular diseases, as
well as inflammatory diseases.  The company has established
collaborations with pharmaceutical and biotechnology companies
to enhance its internal development capabilities and to offset
a substantial portion of the financial risk of developing its
product candidates.

ICOS - ICOS Corporation  $25.80

PLAY (sell naked put):

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

SELL PUT  MAY 20    IIQ QD   1,460    0.20  19.80   4.9%   1.0% TS
SELL PUT  MAY 22.5  IIQ QX     771    0.55  21.95   9.6%   2.5% *
SELL PUT  MAY 25    IIQ QE     280    1.30  23.70  15.9%   5.5%


**************
KLAC - KLA Tencor  $40.92  *** Post-Earnings Entry Point? ***

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  $40.92

PLAY (sell naked put):

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

SELL PUT  MAY 35    KCQ QG   4,809    0.35  34.65   4.3%   1.0% *
SELL PUT  MAY 37.5  KCQ QU   2,791    0.80  36.70   7.7%   2.2%
SELL PUT  MAY 40    KCQ QH   6,415    1.55  38.45  12.1%   4.0%


**************
OVTI - OmniVision  $26.71  *** New 2-Year High! ***

OmniVision Technologies (NASDAQ:OVTI) designs, develops and sells
high performance, high quality and cost efficient semiconductor
imaging devices for computing, telecommunications, industrial,
automotive and consumer electronics applications.  The company's
main product, an image sensing device called a CameraChip, is used
to capture an image in cameras and camera-related products in a
range of imaging applications such as personal computer cameras,
digital still cameras, security and surveillance cameras, personal
digital assistant cameras, mobile phone cameras, and cameras for
automobiles and toys that incorporate both still picture and live
video applications.  Last Quarter, OmniVision exceeded consensus
quarterly earnings estimates and revenue projections, aided by
exceptionally strong demand from makers of digital still cameras
and cameras for cell phones.

OVTI - OmniVision  $26.71

PLAY (sell naked put):

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

SELL PUT  MAY 22.5  UCM QX     309    0.30  22.20   5.9%   1.4% *
SELL PUT  MAY 25    UCM QE     375    0.80  24.20  10.8%   3.3%


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

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.

***************
CTX - Centex  $63.70  *** A Big Day! ***

Centex Corporation (NYSE:CTX) is a multi-industry company with
operates in six principal business segments.  Conventional Homes
operations involve the construction and sale of single-family
homes, town homes and low-rise condominiums, and the purchase and
development of land.  Investment Real Estate operations involve
the acquisition, development and sale of land, and the development
of industrial, office, retail and mixed-use projects.  Financial
Services operations involve the financing of homes, home equity
and sub-prime lending, and the marketing of insurance coverage.
Construction Products involves cement production and distribution,
and the production, distribution and sale of gypsum wallboard,
concrete, aggregates and recycled paperboard.  Contracting and
Construction Services involves the construction of buildings.
Centex HomeTeam Services is involved in pest and termite control,
lawn and landscape care, electronic security, alarm monitoring
and homewiring services.

CTX - Centex Corporation  $63.70

PLAY (conservative - bullish/credit spread):

BUY  PUT  MAY-55.00  CTX-QK  OI=700  ASK=$0.35
SELL PUT  MAY-60.00  CTX-QL  OI=813  BID=$0.80
INITIAL NET-CREDIT TARGET=$0.50-$0.60
POTENTIAL PROFIT(max)=11% B/E=$59.50


**************
RUTX - Russell 2000 Index  $394.97  *** Small-Cap Bulls Only! ***

A series of indexes was developed jointly by the Frank Russell
Company and the New York Futures Exchange (NYFE) to represent
investment-grade equities.  While the S&P 500 index represents
approximately 75% of the investment-grade stocks held by most
institutional investors, the Russell indexes track almost 99%
of the stocks included in portfolios of institutional investors.
The Russell 2000 Index measures the performance of the 2,000
largest companies in the Russell 3000 Index, which represents
approximately 92% of the total market capitalization of the
Russell 3000 Index.  As of the latest reconstitution, the
average market capitalization was approximately $13 billion;
the median market capitalization was approximately $3.8 billion.
The smallest company in the index had an approximate market
capitalization of $1.4 billion.  The Russell 1000, 2000, and
3000 indexes are capitalization-weighted, and adjustments are
made for cross-ownership.  Also, all Russell indexes exclude
non-U.S. stocks, both ADRs and the ordinary shares that are
traded on U.S. stock exchanges.

RUTX - Russell 2000 Index  $394.97

PLAY (conservative - bullish/credit spread):

BUY  PUT  MAY-370  RUZ-QN  OI=639   ASK=$1.00
SELL PUT  MAY-380  RUZ-QP  OI=2528  BID=$1.95
INITIAL NET-CREDIT TARGET=$1.00-$1.10
POTENTIAL PROFIT(max)=11% B/E=$379.00


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

BULLISH PLAYS - SYNTHETIC POSITIONS

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.

***************
GYI - Getty Images  $32.43  *** Solid Earnings! ***

Getty Images (NYSE:GYI) provides a variety of visual content
products, including creative, or stock imagery (both still and
moving images), editorial photography, archival imagery (both
still and moving), illustrations and other related products and
services.  The company provides the solutions to aggregate and
distribute visual content.  Getty provides relevant imagery to
creative professionals at advertising and design agencies and
publishing and media companies involved in newspaper, magazine,
book, CD-ROM and online publishing.  The company also offers its
services to corporate communications departments and business
customers.

GYI - Getty Images  $32.43

PLAY (speculative - bullish/synthetic position):

BUY  CALL  JUL-35.00  GYI-GG  OI=225  ASK=$1.50
SELL PUT   JUL-30.00  GYI-SF  OI=127  BID=$1.50
INITIAL NET CREDIT TARGET=$0.10-$0.25
INITIAL TARGET PROFIT=$0.90-$1.25

Note:  Traders should assess the initial reaction to Wednesday's
earnings report before opening this position.  Using options,
the position is similar to being long the stock.  The minimum
initial margin/collateral requirement for the sold option is
approximately $1,200 per contract.  However, do not open this
position if you can not afford to purchase the stock at the sold
put strike price ($30).  A more speculative position with less
risk is available at the $40C/$25P strikes.


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

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.

***************
NE - Noble Corporation  $32.71  *** Trading Range? ***

Noble Corporation (NYSE:NE) is a provider of diversified services
to the oil and gas industry.  The firm performs contract drilling
services with a fleet of 49 offshore drilling units located in
key markets worldwide.  Its fleet of floating deepwater units
consists of nine semisubmersibles and three dynamically positioned
drillships, seven of which are designed to operate in water depths
greater than 5,000 feet.  Its premium fleet of 34 independent leg,
cantilever jack-up rigs includes 21 units that operate in depths
of 300 feet and greater, four of which operate in depths of 360
feet and greater, and 11 units that operate in depths up to 250
feet.  Its fleet also includes three submersible drilling units.
Over 60% of the fleet is deployed in global markets, principally
the North Sea, Brazil, West Africa, the Middle East, India and
Mexico.  The firm also provides labor contract drilling services,
site and project management services, and engineering services.

NE - Noble Corporation  $32.71

PLAY (sell naked call):

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

SELL CALL  MAY 32.5 NE EZ     167    1.20  33.70  10.9%    3.6%
SELL CALL  MAY 35   NE EG     197    0.40  35.40   4.7%    1.1% *


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

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.

**************
DRYR - Dreyer's  $62.30  *** Nestle Deal In Jeopardy? ***

Dreyer's Grand Ice Cream (NASDAQ:DRYR) makes and distributes
premium and super-premium ice cream and other frozen dessert
products.  The company also manufactures and distributes branded
ice cream and frozen dessert products of other companies.  The
company's product lines include approximately 139 flavors.  Some
flavors are seasonal and are produced only as a featured flavor
during particular months.  The company's premium product line
includes Dreyer's and Edy's Grand Ice Cream, its flagship product.
This ice cream utilizes traditional formulations with all natural
flavorings and is characterized by premium quality, taste and
texture, and diverse flavor selection.  The flagship product is
complemented by Dreyer's and Edy's Homemade Ice Cream, a heavier
and sweeter line of ice creams, and the company's Frozen Yogurt;
Grand Light; No Sugar Added and Fat Free ice creams.  The firm's
premium product line also includes M&M/Mars ice cream products.

DRYR - Dreyer's Grand  $62.30

PLAY (aggressive - bearish/credit spread):

BUY  CALL  MAY-75.00  QDF-EO  OI=10196  ASK=$0.60
SELL CALL  MAY-70.00  QDF-EN  OI=18013  BID=$1.70
INITIAL NET-CREDIT TARGET=$1.10-$1.20
POTENTIAL PROFIT(max)=28% B/E=$71.10


**************
SYMC - Symantec  $42.85  *** Mediocre Profit Outlook! ***

Symantec (NASDAQ:SYMC) provides a broad range of content and
network security solutions to individuals and enterprises.  The
company is a provider of virus protection, firewall, virtual
private network, vulnerability management, intrusion detection,
remote management technologies and security services to various
consumer groups and enterprises around the world.  The company
currently views its business in five primary operating segments:
Consumer Products, Enterprise Security, Administration, Services
and Other.

SYMC - Symantec  $42.85

PLAY (less conservative - bearish/credit spread):

BUY  CALL  MAY-50.00  SYQ-EJ  OI=664   ASK=$0.25
SELL CALL  MAY-45.00  SYQ-EI  OI=5769  BID=$1.25
INITIAL NET-CREDIT TARGET=$0.70-$0.90
POTENTIAL PROFIT(max)=16% B/E=$45.70


**************
UHS - Universal Health Services  $38.50  *** Sector Slump ***

Universal Health Services (NYSE:UHS) owns and operates acute care
hospitals, behavioral health centers, ambulatory surgery centers,
radiation oncology centers and women's centers.  The firm currently
operates 73 hospitals, consisting of 35 acute care hospitals and 38
behavioral health centers located in Arkansas, California, Delaware,
the District of Columbia, Florida, Georgia, Illinois, Indiana, New
Jersey, Kentucky, Louisiana, Massachusetts, Michigan, Mississippi,
Missouri, Nevada, Oklahoma, Pennsylvania, Puerto Rico, Tennessee,
South Carolina, Texas, Utah, Washington and also France.  Universal
Health, as part of its Ambulatory Treatment Centers Division, owns
outright or in partnership with physicians, and operates or manages,
23 surgery and radiation oncology centers located in 12 states.

UHS - Universal Health Services  $38.50

PLAY (less conservative - bearish/credit spread):

BUY  CALL  MAY-45.00  UHS-EI  OI=218   ASK=$0.25
SELL CALL  MAY-40.00  UHS-EH  OI=1521  BID=$0.85
INITIAL NET-CREDIT TARGET=$0.60-$0.70
POTENTIAL PROFIT(max)=14% B/E=$40.60


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

SEE DISCLAIMER - SECTION 1

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


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

COX Communications - COX - close: 34.07 change: +0.87

We seriously consider adding COX as a new call play on Tuesday.
The stock had been consolidating for months and the last few
weeks saw the consolidation narrow to a tight range between $30
and $32.50.  The breakout above $32.50 was big and done on decent
volume.  While we would not necessarily buy calls right here at
$34, we would watch it for future entry points now that the bulls
have the ball.  Earnings are expected on May 5th.

Chart=
http://www.OptionInvestor.com/oin/images/commentary/newsletter/2003-04-23/COX042303.gif

---

UnitedHealth Group - UNH - close: 90.75 change: -0.55

Like it's rival Wellpoint (WLP), shares of UNH are starting to
look like a short.  The daily and weekly oscillators have rolled
over and there is still plenty of profit taking that could be
done.  The challenge here is two-fold.  First, these stocks are
in what will probably be one of the stronger industries for 2003.
Second, UNH has potential support at its 200-dma near 87.50 and
more potential support at 85.  Aggressive traders could try and
play the bearish side, but do so carefully!

Chart=
http://www.OptionInvestor.com/oin/images/commentary/newsletter/2003-04-23/UNH042303.gif

---

Lexmark Intl - LXK - close: 70.50 change: -0.61

While earnings have passed for LXK the bullish atmosphere in the
hardware sector has not.  Shares were due for a little profit
taking and the 61 cent loss today is not too concerning.  In
reality, if we were looking for an entry point to go long a dip
to the $68.50 to 69.00 level might be our best bet.  Stick a
channel tool on the 60-minute interval chart and plan your
strategy.

Chart=
http://www.OptionInvestor.com/oin/images/commentary/newsletter/2003-04-23/LXK042303.gif

---

Medtronic - MDT - close: 47.96 close: -0.03

If you're the type of trader who likes to plan their entries
using trigger points, then MDT may fit the bill.  Shares have
rallied right up to previous resistance at $48.  A breakout over
this level could have shorts running for cover.  Earnings are
expected on May 14th.

Chart=
http://www.OptionInvestor.com/oin/images/commentary/newsletter/2003-04-23/MDT042303.gif

---

Adolph Coors - RKY - close: 51.50 change: +0.98

We mentioned both BUD and RKY in the MarketMonitor today.  Shares
of both brewers were up on news that BUD's numbers were inline
with modest revenue growth.  RKY is expected to announce on April
29th.  However, the close above resistance at $51 today is pretty
bullish and it could see a type of "fill the gap" from its early
February crash.  This looks like a tempting call play.

Chart=
http://www.OptionInvestor.com/oin/images/commentary/newsletter/2003-04-23/RKY042303.gif


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

New NASDAQ High for 2003

To Read The Rest of The OptionInvestor.com Market Watch Click Here
http://www.OptionInvestor.com/marketposture/mp_040703.asp


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