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Daily Newsletter, Monday, 04/19/2004

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The Option Investor Newsletter                   Monday 04-19-2004
Copyright 2004, All rights reserved.                        1 of 2
Redistribution in any form strictly prohibited.


In Section One:

Wrap: A Quiet Monday as Investors Wait on Greenspan
Futures Wrap: See Note
Index Trader Wrap: Financials firmed, while Biotechs bid
Option Spread Strategies: Would You Like Your Profits In Large Bills?


Posted online for subscribers at http://www.OptionInvestor.com
*******************************************************************
MARKET WRAP  (view in courier font for table alignment)
*******************************************************************
     04-19-2004            High     Low     Volume Advance/Decline
DJIA    10437.82 - 14.12 10451.76 10399.47 1.46 bln   1437/1373
NASDAQ   2020.43 + 24.69  2020.45  1991.14 1.65 bln   1749/1349
S&P 100   555.78 +  0.84   555.94   552.73   Totals   3186/2722
S&P 500  1135.82 +  1.21  1136.18  1129.84
RUS 2000  586.95 +  3.58   587.38   579.17
DJ TRANS 2923.77 - 15.70  2939.65  2911.67
VIX        15.42 +  0.48    16.08    15.33
VXO        15.08 -  0.59    16.11    15.08
VXN        21.40 -  1.15    23.49    21.17
Total Volume 3,446M
Total UpVol  2,182M
Total DnVol  1,224M
52wk Highs     255
52wk Lows       76
TRIN          1.84
PUT/CALL      0.67
*******************************************************************

A Quiet Monday as Investors Wait on Greenspan
by James Brown

The action on Wall Street was rather mild on Monday.  Major
indices traded in a narrow range as investors continue to fret
over higher interest rates despite generally positive earnings
news.  Tech stocks did manage to out perform as the SOX
semiconductor index and the NASDAQ both ended a four-day losing
streak.  The Dow Industrials were weighed down by a decline in
McDonalds (MCD) after its Chairman and CEO Jim Cantalupo died
unexpectedly of a heart attack.  Investors are still focused on
the situation in Iraq as Spain's new socialist Prime Minister
made good on his campaign promise and ordered the country's 1,300
soldiers to return home immediately.  Closer to home many in
America's heartland quietly remembered the ninth anniversary of
the Oklahoma City bombings were 168 people lost their lives.

Global stock markets trended flat to down.  The Japanese NIKKEI
turned in a volatile day with an intraday drop of nearly 180
points before recovering to close down -60 points at 11,764.  The
Chinese Hang Seng, the English FTSE, the German DAX and the
French CAC all closed within nine points of unchanged on the
session.  Here at home the Dow Industrials dropped 14 points to
10,437.  The NASDAQ Composite added 24 points to end back above
the 2000 level and breakout over its 50-dma (2014) to close at
2020.  The S&P 500 added just over 1 point to close at 1135.

Buying was strongest in tech stocks with software, Internets,
semiconductors and biotechs all performing well. Healthcare
stocks also bounced higher after their recent declines.  Boosting
traders interest in technology shares was an upgrade for
chipmaker AMD and news that MSFT had settled an antitrust case
with the state of Minnesota.  Monday's weakest sectors were
airlines, metals and housing stocks.  Homebuilders continue to
feel the heat as mortgage rates have risen sharply and investors
rotate out due to growing concerns that the Fed will feel forced
to raise rates.

Market internals were mixed.  It was an even race on the NYSE as
advancers nudged past decliners 14 to 13.  Up volume outpaced
down volume by a small margin as well on the NYSE.  The NASDAQ
reported more bullish readings with advancers beating decliners
17 to 13 and up volume better than three times down volume.
However, overall volume was pretty light.

Chart of the Dow Industrials:



Chart of the NASDAQ Composite:



This is the busiest week for earnings with 179 companies in the
S&P 500 reporting their first quarter results and dozens more who
are not in the index.  However, even though corporate reports are
coming in fast and furious Wall Street remains focused on Federal
Reserve governor Alan Greenspan's two congressional appearances
this week.  Most of the focus is on his Wednesday 10:00 AM
meeting with the Joint Economic Committee but tomorrow afternoon
he comes before the Senate Banking Committee.  Many market
pundits feel that investors are merely marking time until these
two appearances are through on hopes that Alan will drop some
sort of hint regarding the Fed's outlook on rates.  The recent
string of super-strong economic reports have created a lot of
doubt on just how patient the Fed can afford to wait.

Case in point this morning's Conference Board index of Leading
Economic Indicators rose a predicted 0.3% in March.  Drilling
down into the numbers shows that demand remains strong fueled by
consumers more than happy to spend their tax refunds.  Some
analysts are starting to suggest that the U.S. economy may be
growing faster than the currently forecasted 4.3%.

Speaking of growth there is almost no doubt that McDonald's
Chairman and CEO Jim Cantalupo is responsible for turning around
the world's largest restaurant chain.  Cantalupo had come out of
retirement to save the struggling fast-food giant.  Some of his
accomplishments involved redesigning the menu to provide
healthier choices and axing the supersize menu due to a growing
fervor over America's obesity problem.  He was 60 years old when
he died of a heart attack this weekend.  MCD quickly named COO
Charlie Bell as a replacement CEO and probably saved the stock
from a deeper loss than the 2.5% drop it felt today.

A couple of today's big earnings reports came from Dow-component
MMM and drug giant LLY.  MMM, known for its ubiquitous Post-it
notes and Scotch tape, said worldwide sales reached a record-
breaking $4.94 billion for the quarter.  This beat analysts'
estimates for $4.82 billion.  Earnings came in at 90 cents a
share compared to estimates of 87 cents and 44% higher than
earnings a year ago.  3M's Chairman and CEO James McNerney Jr.
was very upbeat with his comments, "Worldwide sales in local
currencies increased in all seven of our businesses, and we
generated double-digit increases in operating income and earnings
per share. We are off to a great start in 2004."  MMM also raised
its Q2 guidance and its full year guidance.  Unfortunately,
shares of MMM didn't react much to the report.  The stock added 3
cents to $83.76.  I suspect investors are concerned about just
how much the weak dollar influenced those results.  Meanwhile Eli
Lilly Co (LLY) jumped 1.3% to $73.40 after reporting earnings of
70 cents per share, beating analysts' estimates by 4 cents.  LLY,
known for its Prozac antidepressants, saw its numbers boosted by
a fivefold increase in sales of its newly launched ED drug
Cialis, which is jointed marketed by partner ICOS.  Total
revenues rose 17% to $3.38 billion for the quarter.  Investors'
lackluster reaction was probably due to LLY's inline guidance for
Q2 and the year.

Two more high-profile movers today were Dow-component Coca-Cola
(KO) and biotech firm Imclone (IMCL).  Shares of KO surged 2.06%
to a new 18-month high on Wall Street's expectation that the
company will make a bid to steal away Gillette's (G) CEO Jim
Kilts.  KO also released news that it would soon be launching
Coca-Cola C2, a low-carb coke with half the calories and carbs of
regular coke.  The company is due to announce earnings on
Wednesday and estimates for at 44 cents a share.

Imclone Systems (IMCL) jumped almost 12% to $66.30 and fueled a
2.8% rise in the BTK biotech index.  Sparking the move was a
company announcement that the FDA had approved its most recent
filing to review the company's new facility to produce its
headline Erbitux drug.  Not hurting the stock was a "buy" rating
from Bank of America who slapped a $91 price target on IMCL.  Of
course Wall Street was quick to notice that IMCL is now trading
above the level where Martha Stewart and Sam Waksal sold the
stock back in 2001.

Looking ahead to tomorrow we have a HUGE earnings day with well
over a hundred well-known companies reporting their first quarter
numbers.  Some of the headliners are likely to be Dow components
Alria Group (MO), General Motors (GM) and Pfizer (PFE) who all
report before the opening bell.  We'll also hear from telecom
companies Lucent (LU), Motorola (MOT) and Sprint (PCS & FON).
Tuesday will also bring the Chain Store sales numbers and the
Redbook Retail sales numbers.  Plus Fed governor Pinalto will
make an appearance but it will be overshadowed by Greenspan's
afternoon meeting.

Trade carefully.  I would probably look for continued strength in
the NASDAQ tomorrow but watch those stops.


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

Futures wrap is not emailed due to the excessive number of charts.
It may be read on the website at this address.
http://www.OptionInvestor.com/indexes/futureswrap.asp


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

Financials firmed, while Biotechs bid

The major indices traded strong to start the week with gains,
where if not for the tragic death of McDonald's (NYSE:MCD) $26.75
-2.58% CEO Jim Catalupo, the Dow Industrials (INDU) 10,437.85
-0.13%, which finished down a modest 14 points, would have most
likely joined the major averages to finish in positive territory.

Financial sectors finished fractionally lower, with the
Securities Broker Dealer Index (XBD.X) 136.68 -0.56% having split
5:1 from Friday's close, where the financials showed some
hesitancy before Fed Chairman Alan Greenspan begins his scheduled
testimony before the Senate Banking Committee tomorrow.

While financials try to firm above Thursday's intra-day lows, the
Biotechnology Index (BTK.X) 550.43 +2.83% lead today's list of
index gainers, while Biotech HOLDRs (AMEX:BBH) $148.82 +1.61%
also found gains with dual component Affymetrix (NASDAQ:AFFX)
$37.46 +6.99% surging to a new 2-year high ahead of Wednesday's
after-the-bell quarterly earnings release.

While not a component of the BTK.X or BBH, ImClone Systems
(NASDAQ:IMCL) $66.30 +11.86% jumped to levels not seen since the
companies founder Sam Waksal illegally began selling shares.

Banc of America Securities initiated coverage on ImClone with a
"buy" rating and bullish price target of $91, saying the company
receives unprecedented economics on U.S. sales of its Erbitux
partnership with Bristol Myers Squibb (NYSE:BMY) $24.53 -1.40%
and believes that favorable economics and no cost of goods
expense for the first $1 billion in Erbitux sales could drive
longer-term earnings power to $3 per share.

Banc of America's comments helped fuel broader sector gains on
thought that other biotech companies may be in a similar position
in the future for favorable economics, should cash-rich drug
companies look to bolster/develop their pipelines.

According to Banc of America, ImClone is set to receive a 39%
royalty of net sales, and a 10% mark-up above drug manufacturing
costs.

U.S. Market Watch - 04/19/04 Close



Positive comments out of Wachovia on wireless service providers
Nextel (NASDAQ:NXTL) $25.00 +4.51% and Western Wireless
(NASDAQ:WWCA) $22.71 +0.88% brought helped give some boost to the
Combined Telecom Index (IXTCX) 188.06 +2.21% as it reclaimed its
50-day SMA (187.36) in today's session.

Handset maker Nokia (NYSE:NOK) $15.30 +4.72% reversed some of its
recent declines that found the stock pummeled from $21 after
disappointing guidance earlier this month, after brokers
Prudential, UBS and JP Morgan downgraded the stock before today's
session began.

Market Snapshot / Internals - 04/19/04 Close



By the close, the very broad NYSE Composite ($NYA.X) 6,620.05
+0.05% managed to close in positive territory, with A/D breadth
even, while the also broad NASDAQ Composite ($COMPX) 2,020 +1.23%
climbed back above the 2,000 level and its starting to round flat
from recently lower trending 50-day SMA (2,014.74).

Pivot Analysis Matrix



As I look at tonight's Pivot Matrix, support may well be defined
by both the S&P Depository Receipts (AMEX:SPY) $113.83 (unch) and
the S&P 100 Index (OEX.X) 555.78 +0.15% at their correlative
DAILY S2/MONTHLY Pivots, where the MONTHLY Pivots were not tested
in today's trade, while both the narrower Semiconductor Index
(SOX.X) 487.03 +1.43% and S&P Banks Index (BIX.X) 336.69 -0.24%
find near-term correlative resistance at their respective MONTHLY
Pivot and MONTHLY S1.

I would fully expect traders/investors to be listening VERY
CLOSELY to Mr. Greenspan's testimony tomorrow, where the Senate
Banking Committee question/answer session will undoubtedly have
traders keying in on EVERY SINGLE WORD Mr. Greenspan speaks, in
an attempt to get a feel for the Fed's view on future interest
rates, where I'd be willing to bet my last dollar, somebody is
going to ask what impact, if any, the jump in March nonfarm
payrolls data has had on the Fed's view of current Fed funds
rates.

10-year YIELD ($TNX.X) Chart - Daily Intervals



As the Fed, lead by Alan Greenspan looks to engineer an economic
recovery, it would be beyond my capability to say for certain
what Mr. Greenspan may say tomorrow, but I think he sticks to
past commentary that the Fed sees little urgency in raising
rates, but the March nonfarm payroll data is the encouraging sign
that the resurgent economic signals are finally showing some
growth in the jobs market.

I would also think Mr. Greenspan discusses the still low rate of
capacity utilization, where commodity prices showing some
stability leaves the Fed patient.

Continuous CRB Index ($CRB) - Daily Intervals



Here's an updated (to April 13 Index Wrap) chart of the
continuous CRB Index ($CRB) from www.stockcharts.com, where
commodity prices to indeed seem to be showing some sign of impact
from the recent rise in Treasury YIELDS (as depicted by the 10-
year YIELD), where in essence, the bond market may have done some
of the Fed's work near-term, allowing Mr. Greenspan and company
to push out any type of rate hike into next year.

I am not certain, but the QCharts symbol for a similar CRB Index
may be (CEC:cr00y) 277.85 +0.11%, where this QCharts chart looks
very similar to the one above, where a trader could keep intra-
day tabs on things.  Again, I'm not so certain as to DIRECTION
being a positive or negative for broader equities, but more
importantly, the RATE of advance/decline.

S&P 500 Index (SPX.X) - Daily Interval



Despite mixed sector trade, the SPX was able to hold above its
flattening-out 50-day SMA and WEEKLY Pivot.  A rather tight zone
of support (1,125 MONTHLY Pivot) and resistance (1,143.51 MONTHLY
38.2) presents itself early this week.  I do think a move above
the WEEKLY R1 would bring in some upside momentum, and be enough
to have MACD kicking higher without crossing below zero.  While
in a near-term downward trend (below 1,143.51) a break below
1,120 would most likely have MACD below its Signal (bearish) and
have the SPX vulnerable back to its March lows.

Dow Industrials (INDU) Chart - Daily Intervals



I don't like to say "if only this wouldn't have happened, things
would have been different," but there is no way the MARKET could
have factored in the tragic death of McDonald's (NYSE:MCD) $26.75
-2.58% CEO Jim Catalupo, where after coming out of retirement,
Mr. Catalupo has been seen as one of the key factors for MCD's
turnaround.  I think this was a shocker and brought some near-
term uncertainty to the stock, but from what I've read, Mr.
Catalupo's replacement is highly thought of.

I view important near-term support above 10,290 and resistance
below 10,570.

NASDAQ-100 Tracker (QQQ) Chart - Daily Intervals



An intra-day chart of the QQQ would have the high being $36.59.
During and after Mr. Greenspan's testimony, should the QQQ stay
above $36.42, I'd have to view that a bullish signal from the
market, where I would have to begin thinking a rally could take
hold back to the MONTHLY R1.  Keep an eye on the SOX.X should it
show strength above 487 and MONTHLY Pivot, where from that point,
I've got to be thinking the psychological 500.00 level is once
again a gravitation point, which then lends itself to QQQ $37.74.

Jeff Bailey


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Would You Like Your Profits In Large Bills?
By Mike Parnos, Investing With Attitude

Funny, isn't it?  Adding up profits at expiration never seems to
get monotonous.  In the April cycle, the profits continued to
flow.  The hundred dollar bills are just weighing down the CPTI
students.  We now have an additional $6,050 in our coffers,
compliments of option buyers everywhere.

The April option cycle was the sixth cycle in the second year of
tracking our Couch Potato Trading Institute portfolio.  With our
$6,050 profits, we've now accumulated a total of $17,480 in six
short months.

Summary Of April Positions
SPX Iron Condor – Profit: $2,400
RUT Iron Condor – Profit: $2,250
XAU Iron Condor – Profit: $1,400
OSX Calendar Spread – Ongoing
Total Profit:  $6,050

The Return Of The Return
Think about it.  Our total exposure (maintenance) on the three
closed April positions was only $25,000, less the $6,050 taken in
premium, equals $18,950.  To calculate your return on risk, divide
our premium profit ($6,050) by the actual amount we had at risk
($18,950).   If you're not impressed with that number, there's
something seriously wrong.  You might consider renewing your
membership to the Cartoon Network where you'll be right at home in
the world of hat-size IQs.

Life Choices
In investing money, the amount of interest you want should depend
on whether you want to eat well or sleep well.  – J. Kenfield
Morley
____________________________________________________________

REVIEW OF APRIL POSITIONS

April Position #1 – SPX Iron Condor – 1135.82
We sold 4 SPX April 1075 puts and bought 4 SPX April 1050 puts for
credit of: $2.50 (x 4 contracts = $1,000).  Then we sold 10 SPX
April 1170 calls
And bought 10 SPX April 1180 calls for a credit:  $1.40 (x 10
contracts = $1,400).  Total net credit and potential profit of
about $2,400.  Maximum profit range is 1075 to 1170.  Safety range
is about 1072.60 to 1177.40.  Maintenance: $10,000.  SPX closed
safely within our range. Profit: $2,400.

April Position #2 – RUT Iron Condor – 586.95
We sold 10 RUT April 530 puts and bought 10 RUT April 520 puts for
a credit of  $1.10.  Then sold 10 RUT April 610 calls and bought
10 RUT April 620 Calls for a credit of $1.15.  Total net credit of
about $2.25.  Potential profit: $2,250.  Maximum profit range: 530
to 610.  Safety range: 527.75 to $612.25.  Maintenance: $10,000.
RUT closed inside the range.  Profit:  $2,250.

April Position #3 – XAU Iron Condor - $94.50
Sold 10 XAU April 95 puts and bought 10 XAU April 90 puts for a
credit of  $.85 (x 10 contracts = $950).  Sold 10 XAU April 110
puts and bought 10 XAU April 115 puts for a credit of $.55 (x 10
contracts = $550).  Total net credit: $1.40.  Potential profit:
$1,400.  Maximum profit range $95 to $110.  Safety range: $93.60
to $111.40.  XAU closed Friday at $95.08 – inside our range.
Profit: $1,400.

April Position #4 – OSX Calendar Spread Plus – $105.94
OSX is the Oil Index.  This is a play on the common belief that
oil prices will continue to move up over the next month or two.
Bought 10 OSX June $115 calls (36 delta) and sold 10 OSX April
$115 calls (23 delta) at a cost of  $2.15 ($2,150).  We also put
on an April $100/$90 bull put spread and took in an extra $.70
($700) to reduce the cost basis to $1.45 ($1,450).  We rolled out
our April $115 call and took in $1.20 – further reducing our cost
basis to $.20.  Then, aggressive traders (which we are in this
strategy) put on the May $100/$90 bull put spread and took in
$.95.  So, now we are a "plus" $.75.  In the best-case scenario,
the OSX will finish just below $110 at May expiration.

______________________________________________________

NEW MAY CPTI POSITIONS
Remember, May is a five-week option cycle.  Get comfortable.
We're going to exercise some patience and self-discipline.  That's
the best kind of exercise.  It beats the hell out of a
Stairmaster.  It's more profitable, too – usually.

May Position #1 – SPX Iron Condor – 1128.83
We sold 10 SPX May 1080 puts and bought 10 SPX May 1070 puts for a
total credit of $1.90 ($1,900).  Then we sold 7 SPX May 1175 calls
and bought 7 SPX May 1190 calls for a credit of  $1.40 ($980).
Our total net credit and potential profit is $2,880.  Our maximum
profit range is 1080 to 1175.  Maintenance: $10,500.

May Position #2 – RUT Iron Condor – 586.95
We sold 10 RUT May 620 calls and bought 10 RUT May 630 calls for a
credit of $1.20 ($1,200).  Then we sold 10 RUT May 540 puts and
bought 10 RUT May 530 puts for a credit of $1.30 ($1,300).  Our
total net credit and profit potential is $2,500.  Our maximum
profit range is 540 to 620.  Maintenance: $10,000.

May Position #3 – MNX Iron Condor - $145.94
We sold 10 MNX May $152.50 calls and bought 10 MNX May $157.50
calls
for a credit of $.80 ($800).  Then we sold 10 MNX May $140 puts
and bought 10 MNX May $135 puts for a credit: $.95 ($950).  Our
total net credit and profit potential is $1,750.  Our maximum
profit range is $140 to $152.50.  Maintenance: $5,000.

May Position #4 – BBH Iron Condor - $145.88
We sold 10 BBH May $155 calls and bought 10 BBH May $165 calls for
a credit of $.70 ($700).  Then we sold 10 BBH May $135 puts and
bought 10 BBH May $125 puts for a credit of  $.70 ($700).  Our
total net credit and profit potential is $1.40 x 10 contracts =
$1,400.  Our maximum profit range is  $135 to $155.  Maintenance:
$10,000.


ONGOING POSITIONS

QQQ ITM Strangle – Ongoing Long Term -- $36.53
We bought 10 contracts of the 2005 QQQ $39 puts and 10 contracts
of the 2005 QQQ $29 calls for a total debit of $14,300.   We make
money by selling near term puts and calls every month.  Here's
what we've done so far:
Oct. $33 puts and Oct. $34 calls – credit of $1,900. Nov. $34 puts
and calls – credit of $1,150. Dec. $34 puts and calls – credit of
$1,500.  Jan. $34 puts and calls – credit of $850.  Feb. $34 calls
and $36 puts – credit of $750. Mar. $34 calls and $37 puts –
credit of $1,150. Apr. $34 calls and $37 puts – credit of $750.
May $34 calls and $37 puts – credit of $800.  Total credit:
$8,850.

Note:  We haven't included the proceeds from this long term QQQ
ITM Strangle in our profit calculations.  It's a bonus!  And it's
a great cash flow generating strategy.

ZERO-PLUS Strategy.  OEX – 556.12
In my Feb. 8th column, I outlined a strategy based on an initial
investment of $100,000.  $74,000 was spent on zero coupon bonds
maturing in seven years at a value of $100,000.  The principal
$100,000 investment is guaranteed.  We're trading the remaining
$26,000 to generate a "risk free" return on the original
investment.

Long Term: Bought 3 OEX Jan. 2006 540 calls @ $81 (x 300 =
$24,300)
March: Sold 3 OEX 585 calls @ $3.10 (x 300 = $930)
March: 535/525 Bull Put spread for credit of $1.10 (x 300 = $330).
Bought back 3 OEX March 585 calls for $.10 & sold 3 of March 560
calls for $1.35.  A credit of $1.25 x 300 = $375.00.  Bought back
March 560 calls for $.15, locked in profit of $120 x 3 = $360.
Cash position is $3,320 ($1,620 plus the unused $1,700).  Our cash
position as of April expiration is $2,640 plus unused $1,700 =
$4,340.

The April 570 OEX call expired worthless.  The OEX 515/505 bull
put spread also expired worthless. (Isn't this fun?)
New May Zero Plus Position
Sell 5 OEX May 530 puts and buy 5 contracts of May 520 puts for
credit of  $1.10 (x 5 contracts = $550).

Sell a call against our long 540 call. Sell 5 OEX April 575 calls
for $1.40 (x 5 contracts = $700).

If both of these plays work out, we can add another $1,250 to our
cash total – just a little bonus while we wait for the market to
go up.
______________________________________________________________

New To The CPTI?
Are you a new Couch Potato Trading Institute student?  Do you have
questions about our educational plays or our strategies?  To find
past CPTI (Mike Parnos) articles, first look under "Education" on
the OI home page and click on "Traders Corner."  For more recent
columns, you can look under "Strategies" and click on
"Combinations."  They're waiting for you 24/7.
______________________________________________________

Happy Trading!
Remember the CPTI credo: May our remote batteries and self-
discipline last forever, but mierde happens. Be prepared! In
trading, as in life, it's not the cards we're dealt. It's how we
play them. Your questions and comments are always welcome.

Mike Parnos
CPTI Master Strategist and HCP
______________________________________________________

Couch Potato Trading Institute Disclaimer
All results reported in this section are hypothetical. While the
numbers represented here may have been achieved or beaten by our
readers, we make no representation that any individual investor
achieved these exact results. The tracking for the plays listed in
this section uses closing prices for the day the newsletter is
published and it is not meant to imply that any reader actually
received those prices or participated in these recommendations.
The portfolio represented here is hypothetical and for investment
education purposes only. It is only an illustration of what type
of gains a knowledgeable investor might receive utilizing these
strategies.


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The Option Investor Newsletter                   Monday 04-19-2004
Copyright 2004, All rights reserved.                        2 of 2
Redistribution in any form strictly prohibited.


In Section Two:

Stop Loss Updates: ESRX
Dropped Calls: None
Dropped Puts: None
Watch List: In The Thick Of It


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Watch List
**********

In The Thick Of It

Research In Motion - RIMM - close: 104.47 change: +3.92

WHAT TO WATCH: After some post-earnings profit taking and
consolidation, RIMM looks like its ready to make another run
higher.  Over the past several sessions, the stock worked its way
down to strong support near $100 and put in a credible bounce on
Monday, threatening to break out of its bull flag pattern.
Entries in the $101-102 area look favorable in anticipation of a
run back to the recent highs near $111.  Use a stop at $98, just
under today's low.




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Gtech Holdings Corp.  - GTK - close: 63.25 change: +2.49

WHAT TO WATCH: Apparently traders have decided that GTK's earnings
were good news afterall.  After Thursday's announcement, the stock
has bounced strongly off 50-dma support and today broke out to new
highs on strong volume.  This looks like a good point for momentum
traders to enter the fray, targeting a continued rally up to the
$67 level, the site of the PnF bullish price target.  More
conservative traders may want to shoot for entries on a mild
pullback near $60-61.




---

Amerada Hess Corp. - AHC - close: 66.72 change: +1.39

WHAT TO WATCH: How about a quickie?  After failing to break down
under its 50-dma a couple weeks back, shares of AHC have been on
the road to recovery and are nearing breakout territory.  Use a
trigger over $67.50 and target a quick move to the $71-72
resistance level.  We've got to be quick here though, as the
company is set to report earnings on April 28th.




---

Symantec Corp. - SYMC - close: 47.50 change: +1.83

WHAT TO WATCH: As has become the norm for this security stock,
SYMC came charging back after Friday's selloff, finding very
strong support at the 30-dma.  This puts the stock in position to
take a run at a breakout to new highs ahead of earnings next week.
Aggressive traders can enter ahead of the breakout, while the more
conservative approach will be to wait for a move over $50.  In
either case, use a stop at $45.50, just under the most recent low.




---

===================
On the RADAR Screen
===================

YHOO $55.69 - The post-earnings consolidation is just about over
and the bulls were eager to reacquire shares of YHOO on Monday,
sending the Internet stock almost 3% higher by the close.  A
breakout over the post-earnings high ($56.24) will set the stage
for a run at next resistance near $60.

AGN $88.75 - Can the bulls get the job done ahead of earnings?
AGN is once again nearing major resistance near $90 and a push
through could set the stage for a quick rally towards next
resistance near $93 before the April 30th announcement.  a rebound
from the $87-88 area looks like a good spot to enter the play,
looking for that bullish resolution.


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