Option Investor
Newsletter

Daily Newsletter, Sunday, 11/14/2004

HAVING TROUBLE PRINTING?
Printer friendly version
The Option Investor Newsletter                   Sunday 11-14-2004
Copyright 2004, All rights reserved.                        1 of 5
Redistribution in any form strictly prohibited.

Entire newsletter best viewed in COURIER 10 font for alignment

In Section One:

Wrap:  Seller Boycott
Futures Wrap: See Note
Index Trader Wrap:  ADJUSTMENT
Editor's Plays:  Its Not Over Yet
Market Sentiment: Do I Buy Now?
Ask the Analyst: "Junk Bonds" and the second leg of a bull market
Coming Events: Earnings, Splits, Economic Events 


Posted online for subscribers at http://www.OptionInvestor.com
******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
       WE 11-12        WE 11-05        WE 10-29        WE 10-22 
DOW    10539.01 +151.47 10387.5 +360.07 10027.5 +269.66 -175.57 
Nasdaq  2085.34 + 46.40 2038.94 + 63.95 1974.99 + 59.85 +  3.64 
S&P-100  566.22 +  8.32  557.90 + 17.25  540.65 + 15.49 -  6.64 
S&P-500 1184.17 + 18.00 1166.17 + 35.97 1130.20 + 34.46 - 12.46 
W5000  11609.67 +200.13 11409.6 +340.64 11068.9 +320.91 - 90.63 
SOX      423.81 +  5.98  417.83 +  5.58  412.25 + 17.09 + 13.79 
RUT      621.98 + 17.69  604.29 + 20.50  583.79 + 16.02 -  0.65 
TRAN    3628.20 + 55.70 3572.50 + 75.08 3497.42 +125.48 + 19.26 
VXO       14.05           14.36           16.57           16.09 
VXN       18.82           19.47           21.90           21.36
******************************************************************

Seller Boycott
by Jim Brown

Chalk up another big day for the bulls and new highs all 
around on the major indexes. Even the Dow almost made it 
across the major resistance zone at 10450-10550 without
stopping. The SOX came back to life and there was not a
bear to be found. It was not a rousing rally day but more
of a slow creep upward with sellers nowhere to be found.

Dow Chart


Nasdaq Chart


After a government holiday the economic reports came back
to haunt us with October retail sales posting a dismal +0.2%
gain compared to a +1.6% gain in September. The biggest drag
came from Autos at -2.2% for the month and surprisingly the
building materials dealers at -1.1%. Apparently hurricane
sales slowed slightly in October after a bounce in Sept.
Ex-Autos the headline number would have been +0.9% but if
you take out the spike in gasoline prices that number drops
back to +0.5%. Any way you slice it sales were terrible and
it appears consumers were constrained by the impending
election and high gas prices. Wal-Mart claims their average
ticket is $50 and the gas prices have taken $10 off that
average. Apparel was the strongest sector at +3.0% as the
first winter storms hit and drove consumers to the stores
for coats and winter clothes. 

The Consumer Sentiment came in much stronger than expected
and could be telling us that holiday shopping is going to
be strong. Sentiment rose to 95.5 for the first November
reading and up from 91.7 in October. We know October was
depressed by the election mudslinging and high oil and
November has seen both of those problems go away. Both
the expectations and current conditions components rose
for the first half of the month. This was the first gain
since July and the biggest gain since June. The strong
jobs report also helped boost sentiment.

Business Inventories rose a paltry +0.1% for September
and well below the +0.7% jump in August. Inventories are
near historical lows in relation to sales and they are
not likely to fall any further. Inventories were up +7.3%
on a year over year basis. However, these very low levels
of inventory will not contribute to the GDP effort. This
is a sustenance level not a rebound level.   

None of this negative news had any impact on stocks. 
Traders took one look at the Consumer Sentiment and weak
oil prices and said we need more stocks. There was nobody
around to sell them and the prices started higher. Prices
appeared to languish over the lunch hour as they waited
for the FOMC minutes from the September meeting but once
the news hit the wires it was off to the races again. 

The minutes expressed some concern about the pace of the
expansion although they said it appeared resilient and
self sustaining. The Fed saw solid growth ahead but at
a pace that was less brisk than previously expected. They
saw numerous risks to the downside and questioned the need
to continue raising rates but still felt a "gradual" pace
of increases would be all that was needed to maintain 
steady growth without inflation. The problems they were
concerned about were primarily job creation and fading
demand. Since this meeting we have seen a sharp jump in
job growth and continued slow growth in demand but growth
that is still rising. It is anticipated that the cautious
Fed as evidenced by the minutes was probably not going to
make any big moves and the "measured pace" phrase was 
going to continue into 2005. Estimates are for a rate
hike in Dec and Feb and continued low inflation. 

There is no shortage of consumer demand in the stock 
market. Schwab noted that there was a +16% rise in 
trade volume in October and November was even stronger.
Ameritrade said November volume was up +20% so far. AMG
Data said for the week ended Wednesday there was $4.3B 
in cash inflows to mutual funds. That was the biggest 
single week since April and tax month. Investors appear
to be going for the gold into year end and worrying about
2005 when we get there. Earnings for Q3 are nearly done
at +15.1% and guidance is light for Q4 and beyond. This
entire rally is built on the hope that the 2005 outlook
will change before we get there. 

It is also built on relief. Relief that the election
process is behind us and relief that the year long down
trend appears to have been broken. Relief that oil prices
have fallen -15% off their highs is also a factor. Would
you have believed back in July that traders would be 
relieved that oil was ONLY $47.50 a barrel today? Oil
was trading at $35.50 on June-30th.    

Crude Oil Chart


Chart of US Dollar Index


Gold Chart


While the equity markets were setting new highs on 
nearly all the indexes the dollar was still getting 
knocked for a loss. This could grow to be a real problem
soon and one that could cause the markets more stress 
than oil ever could. We are nowhere near a critical 
level but we need to keep it on the radar screen. The 
best way to prove the importance of the falling dollar
is to simply look at gold prices. Gold closed at a 
sixteen year high on Friday at $438.30 and the dollar
closed at an multiyear low. Deficits and trade gaps do
matter.

The markets popped in their ear plugs and placed their
tunnel vision glasses firmly in place. Once the sentiment
was announced it was buy, buy, buy but it was not a 
feeding frenzy. Just a slow creep higher until the SPX 
stopped its advance at 1177 and waited for the FOMC 
minutes. Once the minutes were released and deemed 
bullish that SPX level broke and multiple buy programs
tacked on another six points to close at 1183.44 and 
less than a point from the high of the day. Once that 
2002 high at 1177 was broken the race was on and 
announcers could not say enough positive words about 
the rally. 

SPX Chart

The Dow struggled to break over 10500 but once broken 
it nearly made it all the way across the 10450-10550
danger zone without stopping. This is a monster move
and it has shown no signs of weakening. If the Dow can
clear the 10550 level then the highs for the year at
10750 are the next target. Should we see a pullback
initial support would be 10450. 

The Nasdaq has literally caught fire over the last 
two days. The Dell bounce helped and even the SOX 
participated. The Nasdaq Comp closed near the high of
the day at 2083 and 2100 is only a stones throw away.
This is a huge breakout of +49 points from the Wednesday
close. After trading perfectly sideways for four days the
sellers failed to appear Thursday morning and the last
two days were very strong. Investors finally decided 
chip stocks were undervalued and the SOX added +17 points
over the last two days with a close well over the 420
resistance level. If the downtrend resistance at 425 
can be broken like we have seen on the other indexes
then the Nasdaq could really explode. 

The Russell rambled to another all time high and closed
at 622 and right on the last shred of resistance dating
back to Jan-2004. I see no reason why this breakout
should not continue other than the sheer magnitude of
the rally. The small caps should continue leading and
we should watch the Russell as the leading indicator
of any potential pullback. 

Russell Chart


SOX Chart


With the exception of the SOX all the indexes are now
setting either new multi month, multi year or historic
all time highs. Even the transports closed at a new
five year high and the Dow utilities at a new three
year high. Bullishness is not just breaking out all 
over but it is rampant and growing. It is reaching 
extreme levels but traders are scoffing at the idea of
taking profits. Nobody wants to sell. Up volume on the
S&P was nearly 4:1 over down volume and we are at severe
nosebleed levels. Volume across all markets roared back
from Thursday's holiday level and hit 4.3B shares. 
Advancers were better than 2:1 over decliners for 
the second day in a row. 

Stronger volume, strong A/D and more than 10% of all 
stocks were trading at new 52-week highs. Sounds like 
the Goldilocks market for the bulls and the perfect 
storm for the bears. Those bears trying to short this
rally have been road kill for two weeks now. Those 
trying to short are dwindling as the bull gains more 
and more converts. 

There are two challenges now. The first for the bulls
is the amount of extension we have seen. The Dow has
risen +831 points, +8.6% in 14 trading days with no
material profit taking. We have had a couple of minor
losses but most profit taking came on days where there
was a large move higher and then an afternoon sell off.
There has not been any materially negative day. The
S&P has only lost ground on four of the last 15 days
and the total points lost was only -4.20 or an avg of
-1.05 per day. This may not qualify as any kind of 
string but in the middle of that period it was positive
for nine consecutive days. In short there has been NO
profit taking and the risk is beginning to grow that 
some will appear soon. Very soon. 

Conversely there is also risk to the upside, very strong
risk. There is a general feeling starting to make the
rounds that the current rally is the beginning of the
second leg on a cyclical bull market that started back
in March of 2003. If you remember we had a monster
rally off the March lows that added +47% to the SPX
and topped in March 2004. Since March we have trended
down as the election mudslinging increased along with
higher oil and a perceived terror risk for the election.
All very normal reasons to consolidate. Now those worries
are behind us the general consensus is a 1250 S&P target
by year-end. However, that is just the first stop if you
believe a growing analyst population that is now targeting
1350-1500 for year end 2005. 

Dow Chart 1993-1995


Dow Chart 1995-1997


Dow Chart 2002-2004


I do not want to get into the dozens of reasons why 
those 2005 targets may be right or wrong because it
does not matter for the next two weeks. What matters
is the risk to the funds that those predictions could
come true. If they are not fully invested for the rest
of the year then they could miss out on another +10%
S&P move to 1300. Why 1300? Because the obvious target
of 1250 could be hit next week and there is a lot of
year left. If you are a fund manager you can't afford
to be wrong and waiting on the sidelines for the next
pullback. It may never come or when it comes it may
be so weak that you passed up on a +5% gain to get a
-1% pullback. 

The comments beginning to make the rounds since the
last Jobs report suggest we could see a strong upward
revision in 2005 guidance with the January earnings.
Companies like Dell are not seeing any abnormal buying
but they are seeing stronger demand than most people
expected. The weak guidance for Q4 may result in a lot
of better than expected earnings in January if the next
two months continue to improve as dramatically as the
last 30 days. Funds can't afford to be wrong. Being
cautious is not an option at this point. 

Analysts still claim there is a lot of money on the
sidelines. The range bound down trending markets over
the last ten months have punished attempts to get long
several times and managers were either skeptical or
caught under invested on the post election bounce. I
have reported several times over the last couple months
about the high cash positions in many funds. Some as
much as 25% to 35%. We have to assume that most of 
these very large numbers have been shrunk to smaller
levels of maybe 5-10% or less. With $7 trillion on
deposit in mutual funds and $1.5 trillion in hedge
funds even a minimal 3-5% can be a very large number.
If the average mutual fund cash position was only 5%
that would be $350 billion uninvested. At 3% that number
drops to $210 billion and neither number takes the hedge
funds into account. Remember I said average and many 
funds keep less than 1% in cash but many others could
have a substantial cushion. 

If these under invested funds do not participate in any
continued rally then customers will move the money to
a different fund next year. It is "buy or die" for any
fund not currently fully invested. Add in all the retail
money still hesitant to believe in the rally and you
have a lot of reasons for the rally to continue. 

What I am describing is not fundamental. It has nothing
to do with earnings or the economy. It is survival of 
the fittest for funds and the battle has already begun.
Logic would suggest there SHOULD be a pullback to 
consolidate our gains from the last three weeks. Logic
rarely works in new bull and bear markets. Panic is the
only emotion likely to be seen over the next two weeks.

If you are like me you are looking at the set of vertical
green candles above and thinking the sky is about to fall.
Nothing that vertical can last. In fact the current ramp
has not yet reached the proportions of some recent rebounds.

Jul-2002 775 to 909 +17%, +134 points, five days
Oct-2002 768 to 900 +17%, +132 points, eight days
Mar-2003 788 to 896 +14%, +108 points, eight days
Oct-2004 1090 - 1184 +8%, + 94 points, fourteen days

As you can see our current spike, although appearing
vertical to those if us who have been range bound for
ten months, has been weaker than prior rebounds. This
suggests there is room to run and any pullback could 
be limited at best. A run to 1250 from here would only
be +66 points and another +5% gain.  

For a true picture of the strength of the market compare
the breakout in the Wilshire 5000 with the Dow. The
Wilshire has clearly broken out and at three-year highs
with plenty of room to run. 5000 stocks vs only 30.

Wilshire 5000 Chart


I hope I have not alienated anyone with this analysis
and reporting of the current market rumblings. As in
politics, religion and football there can be many opinions
and all different. I only try to sift through the many
available, weigh the options and present the likely 
outcome. 

Imagine the market is like a football game. The bulls
have the ball and have been marching down the field in
pretty impressive fashion with the goal line at SPX 1250.
The bears have been getting trampled on nearly every play.
They know they are being pushed back nearer to their goal 
on each play and the situation is serious. As the time 
begins to expire on the November clock each play becomes
more critical. They may eventually sack the bulls for a
loss but more than likely the next play out of the huddle
will be a long bomb for a bullish gain. The bears have no
replacements and the walking wounded are getting weaker. 
The bulls on the other hand have legions of players just
coming off the bench with pocketfuls of cash for padding.
While the game may not be over the outcome is pretty
obvious. We don't know how many plays are left to be
run before the bulls score or how many sacks the bears
may achieve. That is what keeps it interesting. 

Next week the economic calendar increases in intensity
but baring an absolute disaster it will be ignored. Buy
any dip and don't count on them being deep. Watch for an
interception and be prepared for high volatility. Keep
your eye on the Russell for directional indications. It
should be a fun week as option positions are squared
ahead of expiration. Odds are very good there are a lot
of traders with naked option positions that got away from
them and they will have to buy to cover beginning on Monday.
This should increase the upward pressure on the market.
Max-pain for the SPX is 1125 and hopefully out of reach.
Any move higher on Monday could start another serious 
short squeeze. 

I realize I have painted a strongly bullish picture and
one that may run contrary to logic. The market exists to
confound the maximum number of traders at any given time
and after crawling out on the limb today I am just begging
for it to be cut off behind me. Trade what you see and you
can't go wrong. 
  
Sell Too Soon!

Jim Brown


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

 ADJUSTMENT 
By Leigh Stevens

THE BOTTOM LINE - 
Market action with the further spurt to the upside this past 
week, after only a minimal sideways consolidation, is suggesting 
a new bullish up "leg" and more than just a completed trading 
rally.  For me it causes an adjustment of what might be 
"overbought" extremes (below) and of higher upside index targets. 
This situation makes it difficult for traders to take on new call 
positions as the risk (of a sharp downswing) goes up. Conversely, 
buying puts when a correction seems due, risks getting caught in 
a stampede higher when "irrational exuberance" takes over. 

Longer-term bullish: 1.) The S&P 500's 50-day moving average 
crossed above it's 200-day average, for the only the second time 
since a bearish (downside) crossover 4-years ago - the first time 
was May last year, suggesting the major trend has again turned UP 
in the blue chips. 2.) At its close of 3628 the Dow Transport 
average (TRAN), in the face of very high oil prices, is nearing 
its all-time weekly closing highs (of 3685 in '98 and 3742 in 
99), suggesting a pick up in economic activity ahead. 3.) The 
Russell 2000 (RUT) bellwether index of small cap stocks, has gone 
to a both a new weekly closing high for the year and an all-time 
high as RUT exceeded its 2000 peak, breaking out above a major 
double top. 4.) Bellwether blue chips General Electric (GE) and 
Microsoft (MSFT) have gone to new yearly highs, as well as the 
Nasdaq 100 (NDX), which has gone to a new closing peak.  

Can the rest of the market be far behind? - Well yes actually! To 
keep things in perspective, the S&P 500 (SPX) has retraced to 
date just a bit more than half of its 2000 - 2002 decline (but 
has exceeded a 2-year high). The Nasdaq Composite (COMP) has not 
yet pierced its 12-month weekly closing high (at 2140) and has 
only retraced about 23% of its 2000-'02 decline. If you still 
hold stock, especially tech, from 2000, you probably wish you had 
switched into bonds; or, real estate. Well, householders are 
happy!             
 
FRIDAY'S CLOSING NUMBERS - 
The S&P 500 (SPX) got to its highest level in 3 years - since 
July 2001, closing up  10.7 points (+0.9%), to end at 1,184.17.  
SPX gained one and a half percent on the week.  The Dow 30 
Average (INDU) a laggard in recent weeks, closed up 69 points at 
10,539 (+0.7%), also up 1.5% on the week.

The Nasdaq Composite (COMP) Index rallied to 2085, up 24 points 
(+1.2%) to 2,085.3 - for the week, COMP gained 2.3%. 

FRIDAY'S TRADING  - 

Major news was a summary of the Sept 21st Federal Reserve meeting 
and the discussions relayed from the meeting. Their minutes 
indicate that some members perceived downside risks to their 
central forecast, including the possibility that the end of 
fiscal stimulus and a desire by consumers to increase savings 
would lead consumers to pull back on their spending. 

Federal Reserve Board discussions suggested that current economic 
conditions are likely to warrant a further modest tightening of 
rates, but also noted that "policy actions would need to be 
increasingly keyed to incoming data."

Members noted that the Sept. 21 rate hike to 1.75% had brought 
the real federal funds rate slightly into positive territory 
only.  

Much of the policy discussion at the September meeting revolved 
around prospects for hiring and capital spending by businesses. 
Labor market conditions had improved modestly and business 
investment "would most likely continue to provide considerable 
impetus to the overall economic expansion going forward," 
according to the minutes.  

However, Fed members also expressed concern over the expiration 
of a capital spending tax break at the end of the year, as 
possibly resulting in a "fairly sharp slowing in investment." In 
addition, businesses seem overly cautious in their investment 
decisions, perhaps because of concerns about corporate governance 
or terrorism. 

Another worry was the "further widening of the U.S. trade and 
current account balances," which the committee attributed to 
relatively weaker growth in foreign economies. 

All in the all the market took the report bullishly for stocks 
and the economy as growth looks to be on target but is not likely 
to be so strong as to cause more than modest further rate hikes. 

DELL, MY BELL - 
Strong third quarter earnings from Dell Computer (DELL) helped 
lift tech stocks. Dell rallied to a 4-year high after posting a 
25% gain in Q3 profits, in line with Street forecasts. The stock 
ended at 40.4, up up over 8%.

REPORTS -
The Commerce Department said retail sales showed surprising 
strength in October, rising 0.2% despite a large decline in auto 
sales. Excluding autos, retail sales rose 0.9 percent, the 
strongest sales since May. The figures were slightly better than 
expected. 

The University of Michigan said U.S. consumer sentiment improved 
slightly in early November. Its consumer sentiment index rose to 
95.5 from 91.7 in October, its best reading in 3 months and more 
than expectations for a rise to 93.8. 

OTHER MARKETS -

The 10-year Treasury note ended 13/32 higher at 100 15/32 to 
yield 4.19 percent, in light trading.
 
Crude-oil futures ended lower to mark a loss of almost 5% for the 
week as traders weighed fresh concerns over global oil output 
against pressure from nearly 2 months worth of growing U.S. crude 
supplies. December crude futures closed at $47.32, for a loss on 
the week of $2.29.

The dollar was down against both the euro and the Japanese yen 
slightly - the Euro continues to be unable to surge through 1.30, 
but it holding quite steady just under - stay tuned, as 1.30 is 
an important area.

MY INDEX OUTLOOKS - 

S&P 500 Index (SPX) - Daily chart:

Time for a new scale of 5 percent in my upper trading band (aka  
envelope), relative to the 21-day moving average in the S&P 500 
(SPX) - 5% on the upper envelope line is a setting useful for a 
strong move up in a bull market. Since the usual overbought 
indicators like stochastics and RSI don't work when the market is 
running like this, a setting well above the historical "norm" of 
3 percent gives a good idea of price areas that is an area of 
high risk for a (downside) correction.  

1210 is a measured move type objective based on the flag pattern 
from recent trading traced out below. More on flag patterns can 
be found at -
http://www.OptionInvestor.com/traderscorner/tc_100704_1.asp 
 
My upper trading band suggests that the S&P 500 (SPX) could be 
headed to around 1200 before it gets to a point where a bunch of 
folks decide its time to lighten up and sell. If we do realize 
such a quick 100-point rally, it seems like the glory bull market 
days.  Support is clearer than "resistance" - quotes around it 
cause it's hard to say where that is. But support is around 1140, 
the prior high. Last week, I said that I didn't anticipate a dip 
to below 1140 and I still don't.      



Speaking of exuberance, my "sentiment" indicator saw its first 1-
day reading of call activity so much over puts that it suggests 
that traders are getting so bullish - that's it's bearish!  
Another time for that explanation, but its just a fact that tops 
don't tend to come until a lot of market followers are trading in 
calls - about double put activity on any given day for equity 
options.  

It's also true that these readings in the bearish area can come 
in clusters and get more extreme than the 1-day reading of last 
week.  

S&P 100 Index (OEX) - Hourly chart:

574-575 is an upside objective in the S&P 100 (OEX) based on the 
same considerations as for SPX above - the area of my upper 
trading band at 5% which is rarely exceeded (at least for long) 
and based on the price where the recent rally would carry as far 
as the prior advance; i.e., a type of measured move based on the 
spurt up, added to the top of the 3-day short consolidation. Stay 
tuned on that! 

Of course an objective anywhere near the 12-month intraday high 
around 573 is also quite significant technically - a top 
developing in this area should be watched for its potential of 
being a double top. It may take a while to get through these old 
highs - if at all - especially given the overbought extreme seen 
in indicators like RSI.      

I note my expected support areas on the chart below, at 555, then 
at 545. 



Since OEX is approaching its early-year high, it instructive to 
see how overbought the RSI got then when it hit 80.  Then it took 
weeks for that top to form.     

Dow 30 Average (INDU) - Daily chart: 
 
I thought significant resistance would come to bear around 10500, 
but the Dow 30 (INDU) managed to spurt through this area on 
short-covering and some new buying going into the weekend.  The 
chart presents prior highs as obvious areas both as next targets 
and possible resistance/selling pressures coming in around 10570, 
then if exceeded, at 10750-10753.

I measure a possible objective for this current advance as being 
to the 10700 area.  Potential for a double top exists or just a 
pullback to consolidate the strong gains made in such a short 
time. 




Nasdaq Composite (COMP) Index  - Daily chart:

Anticipated resistance in the 2050 area, didn't slow the Nasdaq 
Composite (COMP) down and 2100 is my next objective, perhaps a 
bit higher say to 2115-2120 - but there is a point where sellers 
are going to come in again.  Near support is at 2030-2032 and 
further key support coming in a zone from 1990 down to 1980. 
Significant support should also be found just under 1950, at the 
up trendline. 



The Composite is about as overbought as it gets, but in this kind 
of strongly trending market this is a less reliable guide to 
going into puts.  But when reversal type price action comes in, 
prices can give ground quickly in this kind of situation as "bad 
news" hits hardest when RSI reaches these extremes.  

Nasdaq 100 (NDX) Index  - Daily chart:

The Nasdaq 100 (NDX) has closed at a new 2004 high, but I will 
also watch closely the intraday high from early in the year also.  
If my expanded (set at a higher percent value above the 21-day 
average) percent envelope line (at 6%) marks the area of a top 
like early this year, NDX will get as high as 1575-1580 before 
coming down. 

As I said last week, my next focus on the charts is what happens 
around the yearly high at 1560.  I don't think further upside 
above this area is all that great.  I would exit calls and go 
into some December put options if NDX got to the 1600 area. 

Support is at 1515-1520, then back down in the 1500-1490 area.



There's more room on the upside for the RSI before it's screaming 
overbought.  

Nasdaq 100 tracking Stock (QQQ) Daily chart:

39 remains my upside objective on QQQ - if the stock clears this 
area, especially on a closing basis, I don't think there is 
necessarily a lot more upside to come after that. It depends on 
what happens the next day - two consecutive closes above a 
resistance point like a prior 12-month high is more crucial than 
a one-day event.  It's a matter of what happens after the shorts 
cover and whether new buyers then step up to the plate. Stay 
tuned!

Near support is expected at 38-37.9, with more significant 
support and buying interest developing if there was a pullback to 
the 37 area.     



Daily volume has not expanded greatly - nothing like the way 
price has - making me a bit cautious on the further upside 
potential for the Q's. That and the overbought extreme we see.  
Regarding volume, the On Balance volume indicator continues 
higher, so there is no bearish divergence - the direction is up 
which is key.  

I like to see more volume coming in to match such a strong rally 
- otherwise it suggests the rally is driven as much by short-
covering as bullish enthusiasm. Probably what's needed is for QQQ 
to achieve a decisive upside penetration of the yearly high at 30 
- or not, to drive the stock down again. 

Good Trading Success!
 
************************Advertisement*************************
We got trailing stops!
* Trade online with trailing stops at optionsXpress, at no extra cost 
* Trailing stops based on the option price or the stock price
* Also place Contingent, Stop Loss, and "One Cancels Other" orders
* Options as low as $1.25/contract, or $12.95 Minimum--NO Hidden Fees!
Go to http://www.optionsxpress.com/marketing.asp?source=oinvest33
Note: Options involve risk. Risk disclosure: 
http://www.optionsxpress.com/welcome_risk_index.htm
**************************************************************



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

Its Not Over Yet

He who laughs last laughs loudest. I just hope we are the
ones laughing when this is over. The Google play was looking
good until Walt Mossberg put down the MSN Search engine at
12:30 on Thursday. Before the piece had even finished on
air the stock had jumped +4 and the short covering began
all over again pushing it back to $190. Friday saw a -$10
drop from the highs but a solid hold at $180.

The game plan was to set a stop at $180 and reenter at
$170 and the level where we restarted the play last week.
I am going to raise that reentry point to $175 and hope
there is a serious downdraft when those shares come to
market on Tuesday. 

There is a disagreement on the web about the actual lockup
dates. The majority of sites list Nov-16th but some had
the date as early as the 12th or as late as the 19th. I
researched it again and the shares are available for 
trading 90 days after the initial IPO. The first day of
trading for the stock was August 19th. 90 days puts it
at Nov-16th after counting for 31 days in Aug and Oct.
Google's venture capitalists, Sequoia Capital and Kleiner
Perkins, are big potential sellers. Both companies 
initially wanted to sell a combined 4.5 million Google
shares but withdrew them at the last minute. They will
be available for sale next week. 85+ employees have over
$2 million in shares each and could also sell some next
week. What would you do as an employee working on the
promise of future gain for the last five years? Ca-Ching$

Who the heck knows what will happen but the one thing
we know for sure is the next 25 million shares are due
out 21 trading days later. 25 million more the next month
and 170 million on Feb 15th. That is a lot of risk for
current holders. 

Plan for next week:

Reenter at $175.00
Stop at $185.00 

repeat if needed 

Google Chart


************  
Open plays:
************  


MRK Put $26.45   

** Stop $28.00 ** (lowered)
** Target $20.00 ** 

Jan-2006 $25 LEAP Put WMR-ME cost $1.70, currently $3.20

Initial recommendation:
http://members.OptionInvestor.com/editorplays/edply_101004_1.asp

MRK Chart


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

XMSR Call $33.89   

** Stop $33.40 ** (raised)
** Target $35.00 **

Somebody is leaning on XMSR at $34 and we have spent 
two weeks battling that level. Solid pattern of higher
lows so I am not ready to exit yet. We could easily 
break out at any time and the break could be worth a
buck to the options. I raised the stop just in case.  


JAN-$30 Call QSY-AF cost 2.75 currently $4.60
JAN-$32 Call QSY-AZ cost 1.75 currently $3.00

Initial recommendation:
http://members.OptionInvestor.com/editorplays/edply_100304_1.asp

XMSR Chart


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

PVN Call Update $16.85 

Target $20.00

New 52-week high on Friday! 

Jan-$15 Call PVN-AC cost 1.05, currently $2.10

Initial recommendation:
http://members.OptionInvestor.com/editorplays/edply_061304_1.asp

PVN Chart



****************
MARKET SENTIMENT
****************
Do I Buy Now?
- J. Brown

Gosh, if you read the market wrap this weekend then you don't 
need to read today's column on market sentiment.  Jim has already 
done an excellent job of discussing why stocks could just as 
easily trade higher versus trading lower in spite of the market's 
overbought, extended status.  Most of us who have been watching 
the markets look at the current rally and think, "Wow!  The 
markets are so extended it has to come down soon."  Yet therein 
lies the problem.  Stocks don't have to do anything.  

If there is one thing we've learned over the past few years is 
that stocks can always go higher when we think they can't and 
they can always go lower when we think they can't.  Do I think 
stocks will go higher?  If you're talking about between now and 
year end then the answer is yes.  But I do believe in the laws of 
gravity.  Try as they might stocks can't defy gravity forever.  
Every day stocks put off consolidating some of these gains the 
steeper and more painful the pull back can be.  

Jim discussed the issue of investors both big and small pushing 
stocks higher because they're afraid they've missed the rally.  
There is nothing stronger than the emotion of greed except fear.  
Right now there are a lot of investors worried the train has left 
the station without them.  This crowd of traders is going to 
pounce on the first dip they see.  That's going to make the dips 
a lot more shallow than you and I might expect.  

The challenge for you and I is two-fold.  Do I buy now and/or do 
I sell?  A lot of OptionInvestor.com's bullish candidates have 
done very well.  So when do you sell?  Do you sell when your 
option is up 25%?  How about 50%?  Do you sell at a 100% gain?  
Over 100%?  That's the question facing many of our readers.  
Personally, I'd rather put the money in my account than see the 
option values evaporate on a sharp pull back.  Yes, it has 
happened before when I sell something because I think it can't go 
any higher and it keeps going.  That's okay!  I suggest readers 
re-evaluate their stop losses to make sure they're comfortable 
with how much risk they're taking.  

So do I buy now?  That's a tough question.  I would much rather 
wait and be one of those in the growing horde waiting for the dip 
than jump in now at what could be a top.  The market will 
eventually pull back.  I'm more encouraged by the positive 
development in the market's bullish percent data.  Plus, the 
volume numbers and advance/decline numbers and new highs/new lows 
data is all very bullish.  The combination of the post-election 
rally and the traditional fourth-quarter November-December 
bullishness should keep stocks climbing higher throughout the end 
of the year.   



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

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  9585
Current     : 10539

Moving Averages:
(Simple)

 10-dma: 10310
 50-dma: 10139 
200-dma: 10244 



S&P 500 ($SPX)

52-week High: 1170
52-week Low : 1031
Current     : 1184

Moving Averages:
(Simple)

 10-dma: 1158
 50-dma: 1126
200-dma: 1120



Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low : 1301
Current     : 1558

Moving Averages:
(Simple)

 10-dma: 1520
 50-dma: 1448
200-dma: 1438



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

CBOE Market Volatility Index (VIX) = 13.33 +0.29
CBOE Mkt Volatility old VIX  (VXO) = 14.05 +0.73
Nasdaq Volatility Index (VXN)      = 18.82 -0.10 


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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.76      1,147,119       874,194
Equity Only    0.64        869,039       553,135
OEX            0.99         77,291        76,757
QQQ            1.51         38,472        58,208


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

Bullish Percent Data

           Current   Change   Status
NYSE          70.5    + 0.8   Bear Correction
NASDAQ-100    69.0    + 3     Bull Confirmed
Dow Indust.   63.3    + 0     Bull Confirmed
S&P 500       71.2    + 0.4   Bull Confirmed
S&P 100       71.0    + 1     Bull Confirmed


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

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


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

 5-dma: 1.00
10-dma: 0.89
21-dma: 0.92
55-dma: 1.03


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


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

Market Internals

            -NYSE-   -NASDAQ-
Advancers    2071      1829
Decliners     744      1155

New Highs     400       190
New Lows       12        14

Up Volume   1467M     1329M
Down Vol.    473M      635M

Total Vol.  1964M     1988M
M = millions


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

Commitments Of Traders Report: 11/02/04

*ALERT - CFTC.GOV has not released any new data since 11/02/04.
         We will update this section when data becomes available.

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

Small specs are the general trading public with commercials being 
financial institutions. Commercials are historically on the 
correct side of future trend changes while small specs tend 
to be wrong.  

S&P 500

Considering the fact that the latest data was taken as of
election day, Nov. 2nd, it's no surprise to see both 
commercials and small traders hedging their bets.  The 
next round of data should be more informative. 

Commercials   Long      Short      Net     % Of OI
10/12/04      423,472   436,780   (13,308)   (1.5%)
10/19/04      432,945   441,041   ( 8,096)   (0.9%)
10/26/04      441,263   445,992   ( 4,729)   (0.4%)
11/02/04      446,192   441,676   ( 4,516)   (0.4%)

Most bearish reading of the year: (111,956) -  3/06/02
Most bullish reading of the year:   23,977  - 12/09/03

Small Traders Long      Short      Net     % of OI
10/12/04      139,175   113,903    25,272     9.9%
10/19/04      147,148   124,827    22,321     8.2%
10/26/04      138,201   121,275    16,926     6.5%
11/02/04      136,290   132,040     4,250     1.5%

Most bearish reading of the year:  (1,657)- 5/27/03
Most bullish reading of the year: 114,510 - 3/26/02


E-MINI S&P 500

E-mini traders are not as humble as the larger S&P futures
traders.  Commercials remain bearish and small traders 
have pushed their bullish bias to new multi-week levels. 
Just remember, this data is post-election. 

Commercials   Long      Short      Net     % Of OI 
10/12/04      258,457   517,805   (259,348)  (33.4%)
10/19/04      264,860   531,541   (266,681)  (33.4%)
10/26/04      276,128   509,552   (233,424)  (29.7%)
11/02/04      307,053   580,081   (273,028)  (30.7%)

Most bearish reading of the year: (354,835)  - 06/17/03
Most bullish reading of the year:  133,299   - 09/02/03

Small Traders Long      Short      Net     % of OI
10/12/04      309,720     62,502   247,218    66.4%
10/19/04      353,903     66,027   287,876    68.5%
10/26/04      345,908     64,061   281,847    68.7%
11/02/04      395,029     63,746   331,283    72.2%

Most bearish reading of the year: (77,385)  - 09/02/03
Most bullish reading of the year: 449,310   - 06/10/03


NASDAQ-100

Just as small traders pushed their bullish S&P bias to multi-
week extremes; they've done the opposite on the NDX with a 
new multi-week bearish extreme and a new low for the year.

Commercials   Long      Short      Net     % of OI 
10/12/04       52,572     32,775    19,797   23.2%
10/19/04       52,630     31,940    20,690   24.4%
10/26/04       53,233     31,323    21,910   26.2%
11/02/04       53,002     31,231    21,771   25.0%

Most bearish reading of the year: (21,858)  - 08/26/03
Most bullish reading of the year:  25,160   - 06/01/04

Small Traders  Long     Short      Net     % of OI
10/12/04        8,756    24,400   (15,644)  (47.2%)
10/19/04       10,462    25,243   (14,781)  (41.3%)
10/26/04       10,521    25,388   (14,867)  (42.8%)
11/02/04        8,886    36,621   (27,735)  (61.3%)

Most bearish reading of the year: (27,735) - 11/02/04
Most bullish reading of the year:  19,088  - 01/21/02

DOW JONES INDUSTRIAL

Neither commercials nor small traders seem willing to place
any big bets but both are somewhat bullish on the Industrials.

Commercials   Long      Short      Net     % of OI
10/12/04       24,150    22,849    1,301       2.7%
10/19/04       25,385    24,213    1,172       2.3%
10/26/04       25,707    24,855      852       1.6%
11/02/04       25,319    24,261    1,058       2.0%
 
Most bearish reading of the year: (8,322) -  1/16/01
Most bullish reading of the year: 15,135  - 10/16/01

Small Traders  Long      Short     Net     % of OI
10/12/04        8,814     9,167   (  353)   ( 1.9%)
10/19/04        8,327     6,015    2,312     16.1% 
10/26/04        8,405     6,336    2,069     14.3%
11/02/04        7,952     6,306    1,261      8.8%

Most bearish reading of the year: (12,106) -  3/09/04
Most bullish reading of the year:   8,523  -  8/26/03


************************Advertisement*************************
We got trailing stops!
* Trade online with trailing stops at optionsXpress, at no extra cost 
* Trailing stops based on the option price or the stock price
* Also place Contingent, Stop Loss, and "One Cancels Other" orders
* Options as low as $1.25/contract, or $12.95 Minimum--NO Hidden Fees!
Go to http://www.optionsxpress.com/marketing.asp?source=oinvest33
Note: Options involve risk. Risk disclosure: 
http://www.optionsxpress.com/welcome_risk_index.htm
**************************************************************


 

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

"Junk Bonds" and the second leg of a bull market

Many "Junk" bonds are nearing all time high resistance. (I have 
been following your Oil, Interest rates, Russell potential story) 
Will this bullish look also give strength to "junk" to overcome 
this resistance?  Do companies which rely on "Junk" continue to 
rely during the early stages of a recovery? Thanks Jim


This readers question came to me on Monday, but what a great 
question to be asking as some of the major indices break out to 
all-time, or new 52-week highs as the second leg of the bull 
market finally begins to take hold.

Jim has evidently been with us for awhile and has been following 
my thoughts and analysis regarding "junk bond" and what this 
asset class can tell investors about the economy.

That's why I placed the "junk bond" Pacholder High Yield 
(AMEX:PHF) $9.81 +0.61% in the U.S. Market Watch, which I show in 
many of the intra-day updates at OptionInvestor.com and 
premierinvestor.net, as well as the Beetles Balanced Benchmark 
fund; a hypothetical fund where we placed equal amounts of 
capital in various asset classes.

It has been my hypothesis dating clear back to early 2003 that 
the sudden advance in "junk bonds" or the closed-end Pacholder 
High Yield (AMEX:PHF) as the example, was telling us that a bull 
market for equities would soon take hold.

My hypothesis was that "junk bonds," which are deemed the HIGHEST 
RISK of bonds, would only be performing well if the MARKET deemed 
an economic recovery taking hold, where even some very indebted 
companies that has suffered greatly during the recession, were 
finally starting to see business pick up, where these "junk-
rated" company's debt, which carried higher coupons (rates of 
interest), would become attractive to investors, as the 
likelihood of repayment of debt became more "certain," or less 
RISKY.

Sure enough, "junk bonds" did indeed give STOCK investors a heads 
up to a new, and what I felt was a young bull market, in its 
FIRST leg, or stage of expansion.

With that said, let's look at the Beetles Balanced Benchmark real 
quick, but I'm showing the portfolio from a benchmark of 
12/26/03.

The reason I want to show this portfolio from the 12/26/03 
benchmark is that this week, the S&P 500 Index (SPX.X) 1,184.17 
and the tracking S&P Depository Receipts (AMEX:SPY) $118.79 just 
broke above their January-February highs, which is a pretty good 
PRICE benchmark to 12/26/03, when the SPY had closed at $109.70.

Beetle's Balanced Benchmark - 11/12/04 Close



If we had placed roughly $1,193.00 in EACH asset class shown in 
the Beetle's Balanced Benchmark, and had never rebalanced (like 
we do near the end of each quarter) this is how things would look 
today.

Our focus in today's comment is the "junk bond" Pacholder High 
Yield (AMEX:PHF) in PINK, and the S&P Depository Receipts 
(AMEX:SPY), which according to most analysts, is supposed to 
reflect the broader U.S. economy.

Since December 26, 2003, up until the past couple of weeks, the 
stock market had been in a lull, perhaps a reflection of the U.S. 
economy.

Now, the PHF currently shows a 6.28% gain, but remember, the 
6.28% gain does NOT reflect the $0.075 per share, per month 
dividend the PHF kicks off each month.  If I wanted to get a true 
P/L % since 12/26/03 benchmark, I would add an additional 75 
cents ($0.075 x 10 months) to today's closing value of $9.81, and 
come up with $10.56.  I could then derive a 14.40% profit from 
12/26/03.

That's not too bad, considering other asset classes current 
P/L %.  True, their P/L % does not reflect any interest payments 
from bond asset classes (SHY, IEF, TLT, LQD) or the equity 
classes (DIA, SPY, QQQ), or a basket of stocks within the HUI.X.  
Still, the PHF would be a clear out-performer since 12/26/03 
benchmark.

With this quick review, Jim's question of "will this bullish 
strength also give strength to junk to overcome this resistance?" 
is confusing.  And must be cleared up immediately.

The REASON I added "junk bond" observations to my market analysis 
is because JUNK BONDS should be a LEADING asset class for 
strength when compared to equities.  

We should remember, "junk bonds" are actually a LESS RISKY asset 
class, than underlying equities.

To make this clear, think of what recently happened with KMart 
before the recent bankruptcy and restructuring.  When the 
"original" KMart went bankrupt, stock holders got nothing.  It 
was the bond holders, when the bonds were then rated "junk" that 
made the recent killing.  When Kmart restructured, the bond 
holders, which are SENIOR to stockholders, received new stock, 
which now trades under the NASDAQ symbol KMRT. 

I'm not trying to be critical of Jim, but the 14.4% gain I 
calculated for the PHF (dividend included) and would compare to 
equity returns in the Beetle's Balanced Benchmark, should 
solidify investor's confidence that "junk bonds" are an important 
asset class to be monitoring.  

And here is where the "second leg" of a bull market can come into 
play with junk bonds Jim.  And this is where a basic 
understanding of economic cycles must be understood as I've 
discussed in the past.

If YOU have ever experienced any financial difficulty, or know 
someone who has, then "junk bonds" and a second leg of a bull 
market for equities, or further expansion of an economy is more 
easily understood.

What happened to your, or your friends credit score (think credit 
rating of a bond) when credit card payments you were supposed to 
make didn't get paid?  Your FICO score probably went down, as 
your creditor wanted to tell other creditors that you, or your 
friend, was starting to exhibit habits of an unworthy credit 
risk.

Maybe you missed some payments after you lost your job in the 
recession.  Maybe you became seriously sick, missed several 
months of work, had other bills to pay (house payment, insurance 
premiums, doctor bills) that had you delaying payment on your 
credit cards.

When your credit score (FICO score) fell, if you wanted more 
credit, you were either denied, or you had to pay a HIGHER rate 
of interest in order to borrow.

The REASON the PHF pays $0.075 per month dividend, or a current 
yield of 9.17%, isn't because this closed-end fund holds a bunch 
of AAA rated bonds.  

An extended period of economic slowing, or some "bad luck" a 
corporation goes through, can create extreme financial hardship.  
When this happens, then the probability of bond holders being 
repaid may become uncertain (the stock of the company gets hit 
the hardest, as stockholders are at the end of the food chain).  
If credit rating services deem a company becoming a HIGH credit 
risk, the corporate debt is rated "junk" by either Moody's or 
Standard & Poors.

When corporate debt is rated "junk," then baby, that's what the 
creditors think of your credit.  Junk!  Garbage!

The next step down from "junk" is bankruptcy!!!!

But just as some individuals have had credit problems in the 
past, some may have had to file bankruptcy, but others were 
fortunate enough to have dug themselves out of debt.

It is often-times the "second leg" of a bull market (even a 
third, a fourth, etc) that junk bonds can further be of help to 
an equity investor.  An end to a bull market (economic expansion) 
can also be signaled.

What happens to the individual that does get their job back, or 
recovers from illness and goes back to work?  As time passes, 
they will usually start paying back their past due creditors.

What happens to their FICO score (credit rating)?  It starts to 
recover!

What happens then?  Your mailbox starts getting filled up with 
credit applications!  You know, "you've been approved for a 
0.00%..."

What is really happening to the individual is that as they START 
RECOVERING from a personal RECESSION (first leg of recovery) and 
as they recover, their VALUE as a potential customer for new 
credit starts to RISE!  Once they've repaired their credit, their 
FICO score begins to recover (second leg of recovery).

THIRD and FOURTH and FIFTH legs of expansion also take place.  
Remember when you were 18 and tried to get credit?  You had no 
credit background, and the bank would only loan you up to X-
number of dollars, and you may have had to pay a higher rate of 
interest than your parents.  But as you aged, your credit history 
started to build, your income probably rose, and the amount of 
credit you began to build had your credit score rising further!

As it relates to "junk bonds" the FIRST LEG of recovery usually 
comes with some type of INITIAL economic recovery for the 
company's business.  The most difficult of times begin to abate, 
business picks up.  Company's that have laid off workers, cut 
costs, etc. have trimmed things to the bare bones.  As the 
recovery is found, their debt may still be rated "junk" but the 
MARKET (investors) will sense the company's likelihood of 
existing into the futures, becoming more sound.

What happened during the economic DOWN cycle is that the 
company's debt, which may have been trading 90-cents on the 
dollar, has fallen to 50 cents on the dollar.

Any debt issued (corporate bond) during the tough times came with 
a HIGHER YIELD, or a higher coupon rate, than say a company with 
much stronger financials that was able to raise funds with a AAA-
rated bond offering.

What will happen during the SECOND leg of recovery is this Jim.

Take one of Pacholder High Yield's holdings; Buckeye Tech Inc. 
(NYSE:BKI) $11.71 -0.67%, and their Senior Subordinate Notes 8%, 
with maturity of 10/15/2010. (Page 4 of PHF's 06/30/04 Semi-
Annual Report).

An 8% coupon seems high in today's low interest rate environment.  
Doesn't it?  There are other holdings with coupons of 12%!

Anyhow, what you will see is stated par value(s) (what the 
bond(s) will be worth at full value upon maturity, should the 
company still be in existence at maturity, and the current VALUE 
of the bonds held.  

Using Buckey Tech's Sen. Sub. Notes 8%, we'll see that PAR VALUE 
of the total holdings (by PHF) is $465,000, while the current 
MARKET VALUE is $428,963.00.  Market value is what you could have 
bought the bonds for on June 30, 2004.

In essence Jim, this bond currently trades at an addition 
DISCOUNT of $36,037 to its PAR VALUE.  That is an 8.4% DISCOUNT 
to par.

What might happen to the PRICE, or MARKET VALUE of this bond 
should the economy begin a second leg of recovery, and business 
pick up for Buckey Tech?

What about the other hundreds of "junk" bonds the PHF currently 
holds?

Correct!  Should business pick up, then Buckey's ability to pay 
that hefty 8% coupon should become more certain.  As time passes, 
then the time to maturity of this bond shortens.

Now.... here's where "junk bonds" can get a real bullish kick.

Let's imagine for a moment that the economy really heats up.  
Business is booming for Buckey tech, and their bank vault is now 
overflowing with cash.  The stock is also hitting a 52-week high.

What would YOU do if you were the CEO of Buckey Tech?  I'd 
certainly hope that you would PAY OFF THAT HIGH COUPON BOND of 
8%!  

Jim, if you pay off that coupon of 8%, what is happening to the 
MARKET VALUE of that bond?  What MUST happen?  The MARKET VALUE 
must immediately rise to PAR VALUE.

Boom!  There that 8.4% discount (Market to Par) that the 
bondholder profits from.

What happens to the stock?  

Boom!  That 8% per year interest the company was paying, now goes 
to the bottom line and earnings!!!! 

You see the pattern?  First the bond price increases from a 
discount, to par.  Then the stock should respond (follow the 
bond) with a higher price!

That's the extreme bullish case for a "junk bond" holder.  

But as a CEO Jim, you also know the power of financial leverage.  
Even if business improves, and the company's credit rating gets 
boosted from "junk" to maybe a B rating, you'd probably approach 
an investment bank and talk to them about refinancing that 
existing 8% bond, with a 6% bond, as your company's credit rating 
has improved as the economic cycle begins its second leg.  

Heck Jim, with the stock at a 52-week high (demand in control of 
your stock) you might also think about a secondary stock offering 
to try and appease some of that demand for your stock.  
Stockholders might not mind as your paying off an 8% note with 
the proceeds from the secondary stock offering!

Still, the bondholders of your 8% are going to get their PAR 
VALUE and if the Pacholder High Yield Fund (PHF) is still holding 
some of those 8% coupon bonds, then the PHF fund should see some 
increase in value.

Unfortunately Jim, I threw away my other quarterly reports and it 
would have been very interesting and informative to have seen if 
PHF had held some Buckey Tech Sen. Sub. 8% notes back in April of 
2003.

If you pull up a chart of Buckey Tech's (NYSE:BKI) $11.71 stock, 
you'll see the stock was trading just under $5 when the stock 
market found its "recession lows"  in early 2003.

I'd almost be willing to bet that Buckey's Sen. Sub. 8% notes 
have outperformed the stock, if you add back in that hefty 8% 
coupon it has paid per year since then.

When do "junk bonds" tend to under-perform stocks?  This analysis 
is SO important to understand.  An I will guarantee you that more 
than one analysts, or investor will have misread this signal and 
it comes from not understanding an interest rate environment, but 
MOST IMPORTANTLY, economic cycles.

Some analysts only think there is ONE cycle to an economy.  Up 
then Down.  Down then Up.  It just isn't so Jim.  

"Junk bonds" can become an under performing asset, and be misread 
by STOCK MARKET ANALYSTS (that don't understand junk bonds) under 
a LOW INTEREST RATE ENVIRONMENT, in a SECOND LEG (not a first 
leg) or THIRD LEG of an economic expansion.

Remember, a VERY HEALTHY economy will go from an initial 
ACCELERATION phase (coming out of recession very accommodative 
Fed policy, interest rates usually low) to a growth phase 
(acceleration abates, steady growth resumes, Fed may begin 
tightening, but at a "measured pace" as economy has been 
expanding at rapid pace) and then a more mature phase (steady, 
but slower rate of growth, Fed fine tunes with a rate hike here 
and there, maybe a cut to extend the economic growth cycle).

What tends to happen as an economy moves from the acceleration 
phase is this.

Corporations begin to grow earnings as the second leg of the 
economic cycle takes hold.  From this, those company's that had 
debt, which was rated "junk," may have that debt upgraded, or 
they pay that higher coupon debt off entirely.  That's great for 
the "junk bond" holders at the time!

What then happens though is that the pool, or number of "junk 
bonds" begins to diminish as corporate credit quality improves 
with the economy.

As the Fed begins to tighten its monetary policy (raise rates) 
the Treasury bond market will respond, and we will most likely 
see Treasury bond YIELDS start to rise.  Remember here that 
Treasuries are deemed MUCH LESS RISKIER than Junk Bonds.

What will eventually happen Jim is this.

The number of "junk bonds" will begin to diminish, as 
corporations' credit quality improves with economy.

As Treasury YIELD begins to rise, this becomes competition for 
the "junk bond" investor.  Over time, the MARKET will continually 
ask itself the question "Do I now buy a 10-year YIELD at 4.2% 
instead of the Buckey Sen. Sub. 8% note that trades at an 8.4% 
discount to par?

"Junk bonds" CAN DECLINE or UNDERPERPERFORM in a very healthy 
economic environment (stocks rising/economy growing) when 
corporation's credit quality has improved so much that the number 
of junk bonds diminish, and as the Fed raises rates to try and 
stem a more rapid pace of growth, which can lead to inflation, 
that there is no longer enough "junk bonds" and HIGHER YIELD to 
compete against alternative asset classes.

To understand this phenomena, you MUST believe in the 
supply/demand relationship and its impact on price.

Say you have 10 junk bond investors (demand) and you have 100 
junk bonds (supply) that are available in the MARKET, all with 8% 
coupons and all trading at an 8% discount to PAR VALUE.  

Now imagine that the economy has improved markedly, and there are 
still 10 junk bond investors (demand), but the number of junk 
bonds available in the market has fallen to 50 (half the supply).  
All 50 still have a coupon of 8%, but more than likely those 
bonds remaining will have seen their DISCOUNT to PAR VALUE 
narrowed to perhaps 2%. 

The MARKET is so smart Jim, that it will EVENTUALLY KNOW if it is 
worth the RISK to buy Buckey Sen. Sub. notes with a current 
potential 16.4% return, or the VERY SAFE 10-year Treasury YIELD 
($TNX.X) with a current 4.2% coupon.  It will weigh this decision 
on its outlook for the economy, where the economy's 
strength/weakness is the RISK factor.

For the Pacholder High Yield (PHF) $9.81, we KNOW that it is 
currently spitting off a current yield of 9.17% per year if I 
bought it at $9.81 (12 monthly dividends of $0.075 divided by 
$9.81).

How can the "junk bond" market decline, despite a still healthy 
and growing economy?

When the MARKET decides it is comfortable with the thought of 
continued economic growth that it wants to take on FURTHER RISK 
and GREATER POTENTIAL REWARD that what the "junk bond's" YIELD 
and its DISCOUNT TO PAR can offer.

What's the next-most RISKIEST asset class than "junk bonds?"

You got it!  It STOCKS!!!!!!!

But hopefully, investors have learned something from me about 
economic cycles.  Its not just growth, contraction, growth, 
contraction, growth and contraction.  An economic cycle, 
especially one that comes out of recession, will see acceleration 
and then growth phase, and can even be further prolonged with a 
maturing growth phase before contraction is found.

I went cross-eyed as I was reviewing the Pacholder High Yield 
(PHF) semi-annual report.  It looks like there's still a lot of 
"junk" out there, trading at some discounts to par value.

Ooooeee!  PHF made some money on that Insight Health Services Sr. 
Sub. 9.875% note.  Par value of $1,500,000 but trading at a 
PREMIUM to par with a market value of $1,612,500 and still 
getting a 9.875% coupon?  

As I see things Jim, it looks like we're just entering the second 
phase of the bull market that started in early 2003.  The fed 
funds rate is still at historically low levels, currently 2.0%.  
Treasury yields are still at some very low historical levels.

If I'm correct, or have been correct in thinking that a second 
leg of a bull market would soon unfold (as it looks like it has 
the past two weeks) then there should still be plenty of "junk 
bonds" with attractive coupons, trading at DISCOUNTS to par, that 
offers junk bond investors some handsome future returns.

Will they continue to outperform equities as they have (price + 
YIELD) forever?  No.  The supply/demand relationship along with 
economic cycles doesn't allow for it.  

But!  The fact that the NYSE and Russell 2000 are making all-time 
highs, the SPX trading a fresh 52-week high certainly can't hurt 
the prospects for many "junk bonds" to be seeing their current 
market price begin to narrow the gap to their par values.  Just 
because we're seeing equity indices breaking out higher, doesn't 
mean for CERTAIN that "junk bonds" will, at least not 
immediately.  Perhaps market participants see greater return in 
equities than they do for "junk bond" over the next couple of 
months.  Still, a portion of your holdings should still generate 
a decent income stream.

If the Pacholder High Yield (PHF) fund manager, or any "junk 
bond" fund manager is doing his/her job, then they are making 
some good risk/reward assessments and bond selections, and the 
bond prices (market value) should be improving as fast, if not 
faster than the underlying equity.  They HAVE TO BE if the MARKET 
is as efficient and all-knowing that many believe it is.

Conclusion:

On a scale of risk, the equity markets are RISKIER than the "junk 
bond" market.  This is true as in the case of bankruptcy, the 
bondholders are senior to stockholders.  Therefore, the "junk 
bond" market should be a leading indicator for stocks.  It has 
been hasn't it?

If you believe the above to be true, then all that is left is the 
understanding of economic cycles.  Just because an economy 
expands from recession, doesn't mean it will go back into 
recession, especially if "junk bonds" are seeing price gains and 
outperforming equities!

Jeff Bailey


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

-----------------
Earnings Calendar
-----------------

*This is not a complete list.  We only try and highlight the 
more significant earnings reports.


Symbol  Co               Date           Comment          EPS Est

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

APPA A.P.Pharma Inc.      Mon, Nov 15  Before the bell      n/a
ATN  Action Performance   Mon, Nov 15  After the market     0.21
ATA  Apogee Technology    Mon, Nov 15  Before the bell      n/a
ARM  ArvinMeritor, Inc.   Mon, Nov 15  Before the bell      0.53
BGO  Bema Gold            Mon, Nov 15  After the market    -0.01
BOBE Bob Evans Farms      Mon, Nov 15  After the market     0.28
CKN  Cash Systems Inc     Mon, Nov 15  ----- n/a -----      0.04
ERJ  Embraer-Empresa      Mon, Nov 15  After the market     0.52
FRO  Frontline Ltd.       Mon, Nov 15  ----- n/a -----      2.12
GLBC Global Crossing      Mon, Nov 15  Before the bell     -4.44
HOLL Hollywood Media      Mon, Nov 15  After the market    -0.07
IDBE ID Biomedical        Mon, Nov 15  After the market    -0.10
JAS  Jo-Ann Stores        Mon, Nov 15  After the market     0.32
LOW  Lowe's Companies     Mon, Nov 15  Before the bell      0.65
MUSE Micromuse Inc.       Mon, Nov 15  Before the bell      0.01
RENT Rentrak Corp         Mon, Nov 15  After the market     n/a
SMD  The Singing Machine  Mon, Nov 15  Before the bell      n/a
TSN  Tyson Foods          Mon, Nov 15  Before the bell      0.17

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

ATW  Atwood Oceanics      Tue, Nov 16  Before the bell      0.10
BJ   BJ's Wholesale Club  Tue, Nov 16  Before the bell      0.31
BAMM Books-A-Million      Tue, Nov 16  After the market    -0.07
BGP  Borders Group        Tue, Nov 16  After the market    -0.02
CTMI CTI Molecular Imag.  Tue, Nov 16  Before the bell      0.16
ESE  ESCO Techonlogies    Tue, Nov 16  Before the bell      0.85
GYMB Gymboree             Tue, Nov 16  After the market     0.17
HPQ  Hewlett-Packard      Tue, Nov 16  After the market     0.37
HB   Hillenbrand Ind.     Tue, Nov 16  Before the bell      0.75
HD   Home Depot           Tue, Nov 16  Before the bell      0.56
JCP  J.C.Penney           Tue, Nov 16  Before the bell      0.48
NTAP Network Appliance    Tue, Nov 16  After the market     0.14
JWN  Nordstrom            Tue, Nov 16  After the market     0.47
ROST Ross Stores, Inc.    Tue, Nov 16  Before the bell      0.25
SKS  Saks Inc.            Tue, Nov 16  Before the bell      0.04
SPLS Staples, Inc.        Tue, Nov 16  Before the bell      0.40
SCMR Sycamore Networks    Tue, Nov 16  After the market    -0.03
VOD  Vodafone Group       Tue, Nov 16  During the market     n/a
WMT  Wal-Mart Stores      Tue, Nov 16  Before the bell      0.54
ZLC  Zale Corp.           Tue, Nov 16  Before the bell     -0.21

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

AGIL Agile Software       Wed, Nov 17  After the market     0.01
AMAT Applied Materials    Wed, Nov 17  ----- n/a -----      0.26
BLI  Big Lots Inc.        Wed, Nov 17  Before the bell     -0.20
BKST Brookstone           Wed, Nov 17  ----- n/a -----     -0.32
BWS  Brown Shoe Co        Wed, Nov 17  Before the bell      0.95
GME  Gamestop Corp.       Wed, Nov 17  Before the bell      0.24
GDYS Goody's Family       Wed, Nov 17  Before the bell     -0.06
HOTT Hot Topic            Wed, Nov 17  After the market     0.27
INTU Intuit               Wed, Nov 17  After the market    -0.27
JBX  Jack in the box      Wed, Nov 17  ----- n/a -----      0.49
LDG  Longs Drug Stores    Wed, Nov 17  After the market     0.15
MDT  Medtronic Inc        Wed, Nov 17  After the market     0.45
MW   Men's Wearhouse      Wed, Nov 17  After the market     0.35
MGAM Multimedia Games     Wed, Nov 17  After the market     0.23
PETM PetsMart             Wed, Nov 17  After the market     0.24
CRM  Salesforce.com       Wed, Nov 17  After the market     0.01
TLB  Talbots              Wed, Nov 17  ----- n/a -----      0.50
TOO  Too, Inc.            Wed, Nov 17  Before the bell      0.27
V    Vivendi Universal    Wed, Nov 17  ----- n/a -----      n/a


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

ARO  Aeropostale, Inc.    Thr, Nov 18  After the market     0.54
ADSK Autodesk, Inc.       Thr, Nov 18  ----- n/a -----      0.34
BKS  Barnes & Noble       Thr, Nov 18  Before the bell      0.12
BCSI Blue Coat Systems    Thr, Nov 18  After the market     0.09
CBRL CBRL Group           Thr, Nov 18  Before the bell      0.59
CLE  Claire's Stores, Inc Thr, Nov 18  ----- n/a -----      0.29
DKS  Dick's Sporting Good Thr, Nov 18  Before the bell      0.04
DBRN Dress Barn           Thr, Nov 18  ----- n/a -----      0.21
ELBO Electronics Boutique Thr, Nov 18  After the market     0.29
FL   Foot Locker Inc.     Thr, Nov 18  ----- n/a -----      0.47
GPS  Gap Inc.             Thr, Nov 18  After the market     0.28
GCO  Genesco              Thr, Nov 18  Before the bell      0.46
HIBB Hibbett Sporting     Thr, Nov 18  After the market     0.24
HUG  Hughes Supply        Thr, Nov 18  After the market     0.52
KLIC Kulicke & Soffa      Thr, Nov 18  Before the bell      0.04
LTD  Limited Brands       Thr, Nov 18  Before the bell      0.10
MRVL Marvell Semicond.    Thr, Nov 18  After the market     0.21
MCDTA McDATA Corp.        Thr, Nov 18  After the market     0.01
MSCC Microsemi            Thr, Nov 18  ----- n/a -----      0.12
NOVL Novell, Inc.         Thr, Nov 18  After the market     0.05
SHRP Shaper Image Corp.   Thr, Nov 18  After the market    -0.17
SKO  ShopKo Stores        Thr, Nov 18  Before the bell      0.04
SMRT Steinmart Inc.       Thr, Nov 18  Before the bell     -0.05
BBA  The Bombay Co.       Thr, Nov 18  After the market    -0.23
LNUX VA Software          Thr, Nov 18  After the market    -0.02
VIP  Vimpel Comm.         Thr, Nov 18  ----- n/a -----      1.95
DIS  Walt Disney          Thr, Nov 18  After the market     0.18
WSM  Williams-Sonoma      Thr, Nov 18  Before the bell      0.23

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

CPWM Cost Plus            Fri, Nov 19  Before the bell      0.01
SJM  J.M.Smucker Co.      Fri, Nov 19  Before the bell      0.74



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

Symbol  Company Name              Ratio    Payable     Executable

DVN     Devon Energy              2:1      Nov 15th    Nov 16th
NFB     North Fork Banc           3:2      Nov 15th    Nov 16th
FBNC    First Bancorp             3:2      Nov 15th    Nov 16th
FINL    The Finish Line Inc       2:1      Nov 17th    Nov 18th
SSD     Simpson Manufacturing     2:1      Nov 18th    Nov 19th
STJ     St. Jude Medical          2:1      Nov 22nd    Nov 23rd
TASR    TASER Intl. Inc           2:1      Nov 29th    Nov 30th
MSL     MidSouth Bancorp          5:4      Nov 30th    Dec 01th
SYMC    Symantec                  2:1      Nov 30th    Dec 01th
RYL     Ryland Group Inc.         2:1      Nov 30th    Dec 01th

-----------------------------------
Economic Reports & Events This Week
-----------------------------------

We have three fed heads making an apperance this week.  Both the
Fed and Wall Street will be watching the PPI and CPI numbers for
a gauge on inflation.  Earnings continue to trickle in.

==============================================================
                       -For-           
----------------
Monday, 11/15/04
----------------
NY Empire State Index for November   Last: 17.4   Est: 20.4

-----------------
Tuesday, 11/16/04
-----------------
Producer Price Index (PPI) for October  Last: 0.1%   Est: 0.5%
Core PPI for October                    Last: 0.3%   Est: 0.1%
NAHB Housing market index for November
Federal Reserve Governor Moskow speaks on Economic Outlook

-------------------
Wednesday, 11/17/04
-------------------
Consumer Price Index for October        Last: 0.2%   Est: 0.4%
Core CPI for October                    Last: 0.3%   Est: 0.1%
Industrial Production for October     
Capacity Utilization for October
Housing Starts for October              Last: 1898K  Est: 1980K
Building Permits for October            Last: 1998K  Est: 1980K
Federal Reserve Governor Pianalto speaks in Ohio

------------------
Thursday, 11/18/04
------------------
Philly Fed for November                 Last: 28.5    Est: 23.2
Weekly Initial Jobless Claims           Last: 333K
Leading Indicators for October
SEMI Book-to-Bill report

----------------
Friday, 11/19/04
----------------
Federal Reserve Governor Stern speaks on Economy



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


************************Advertisement*************************
We got trailing stops!
* Trade online with trailing stops at optionsXpress, at no extra cost 
* Trailing stops based on the option price or the stock price
* Also place Contingent, Stop Loss, and "One Cancels Other" orders
* Options as low as $1.25/contract, or $12.95 Minimum--NO Hidden Fees!
Go to http://www.optionsxpress.com/marketing.asp?source=oinvest33
Note: Options involve risk. Risk disclosure: 
http://www.optionsxpress.com/welcome_risk_index.htm
**************************************************************



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

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

The monthly subscription price is $49.95. The quarterly
price is $129.95 which is $20 off the monthly rate.

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

To subscribe you may go to our website at

www.OptionInvestor.com

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

Contact Support

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

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


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

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


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

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

Contact Support




The Option Investor Newsletter                   Sunday 11-14-2004
Sunday                                                      2 of 5

In Section Two:

Watch List: Worthy of the play list.
Dropped Calls: ITW, ITT, GS
Dropped Puts: None


************************Advertisement*************************
We got trailing stops!
* Trade online with trailing stops at optionsXpress, at no extra cost 
* Trailing stops based on the option price or the stock price
* Also place Contingent, Stop Loss, and "One Cancels Other" orders
* Options as low as $1.25/contract, or $12.95 Minimum--NO Hidden Fees!
Go to http://www.optionsxpress.com/marketing.asp?source=oinvest33
Note: Options involve risk. Risk disclosure: 
http://www.optionsxpress.com/welcome_risk_index.htm
**************************************************************

Worthy of the play list.

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

Sunoco Inc - SUN - close: 76.36 change: +1.92

WHAT TO WATCH: Entry-point alert.  The oil sector is getting 
closer and closer to a bullish breakout and the beginning of a 
new leg higher.  Shares of SUN have consolidated with a lot more 
strength than many of its peers and could lead the group higher.  
Friday's move looks like a bullish entry point but shares still 
have some resistance at $78.00.  The MACD is nearing a new buy 
signal too.  Watch for the breakout!  The P&F chart points to 
$117.  We'd probably set a short-term target near $85.




---

Commerce Bancorp - CBH - close: 60.15 change: +0.56

WHAT TO WATCH: We came so close to adding CBH to the play list 
this weekend as a bullish candidate.  It's been tough to find 
stocks that don't look too extended and overbought.  We like CBH 
because shares have been consolidating under resistance in the 
$60.00-60.50 range.  The P&F chart is currently bearish but a 
move over $61.00 would reverse the chart into a new buy signal.  
We'd be tempted to jump the gun and open long positions over 
$60.51.  Target would be $65.00.




---

Siemens - SI - close: 79.21 change: +0.77

WHAT TO WATCH: We also came very close to adding German 
electronics conglomerate SI to the play list as a bullish 
candidate.  The recent breakout over resistance near $76.50 and 
the bounce from its simple 10-dma looks like an entry point.  
There is potential round-number resistance at $80.00 but we don't 
expect it to hold SI back.  The P&F chart looks very bullish with 
a $97 target.  We would probably target the current highs near 
$87.00 by year's end.




---

PNC Financial Services - PNC - close: 55.70 change: +0.69

WHAT TO WATCH: Do you see it?  If you look at PNC's daily chart 
you can see an inverse (bullish) head and shoulders pattern with 
the neckline at $56 resistance.  A breakout would project a price 
target of $63.  We'd probably set an initial target at round 
number resistance at $60.00.  Watch the P&F chart.  A move over 
$56 would also produce a new buy signal.





-----------------------------------
RADAR SCREEN - more stocks to watch
-----------------------------------

CDWC $66.96 +2.76 - This is a very bullish breakout over multiple 
levels of resistance.  Watch it for a pull back.

LMT $58.56 +0.58 - Lockheed Martin looks very strong here.  We'd 
be interested in a pull back toward $56-57.

MDC $79.35 +1.38 - MDC looks ready to breakout over resistance at 
$80.00 to hit new all-time highs.

FRE $69.30 +0.65 - FRE is nearing very heavy resistance at $70.  
A breakout would be very bullish.

************************Advertisement*************************
We got trailing stops!
* Trade online with trailing stops at optionsXpress, at no extra cost 
* Trailing stops based on the option price or the stock price
* Also place Contingent, Stop Loss, and "One Cancels Other" orders
* Options as low as $1.25/contract, or $12.95 Minimum--NO Hidden Fees!
Go to http://www.optionsxpress.com/marketing.asp?source=oinvest33
Note: Options involve risk. Risk disclosure: 
http://www.optionsxpress.com/welcome_risk_index.htm
**************************************************************


 


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

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


CALLS
^^^^^

Goldman Sachs - GS - close: 104.66 change: +1.66 stop: 97.50     

That's close enough for us.  Our target has been the $105 region 
and shares of GS helped lead the XBD broker-dealer index higher 
with a move to $104.90.  Both the XBD and shares of GS while 
showing great relative strength also look very overbought, 
extended and way overdue for some profit taking.  We hope that 
those doing the profit taking are our readers.  Check out the 
rise in option values from when we picked GS to today.  The 
December 90 calls have risen from $7.40 to $15.00; the Dec 95s 
$3.60 to $10.30, the Dec 100s $1.20 to $5.80, the Jan 95s $4.40 
to $10.90, Jan 100s $1.90 to $6.70 and the Jan 105s $0.65 to 
$3.40.  We'll be sure to keep an eye on GS for a dip and consider 
new bullish positions on any rebound.

Picked on October 27 at $96.10
Change since picked:    + 8.56
Earnings Date         09/21/04 (confirmed)
Average Daily Volume =     3.2 million 
Chart =


---

ITT Industries - ITT - close: 86.20 chg: +0.76 stop: 82.50      

Target achieved!  Actually ITT has surpassed our official exit 
point at $85.90.  The move over $86 looks pretty bullish but like 
most of the market ITT is looking pretty overbought here.  We'll 
be sure to keep an eye on it for future trading opportunities.  

Picked on November 03 at $81.51
Change since picked:     + 4.69
Earnings Date          10/21/04 (confirmed)
Average Daily Volume =      460 thousand
Chart =


---

Illinois Tool Works - ITW - cls: 95.98 chg: +0.54 stop: 92.00     

That's close enough for us.  Shares of ITW closed at $95.98.  
We've been waiting for ITW to hit our target at $96 ever since it 
came within 15 cents on Nov. 5th.  The two-day bounce from $94 
looks pretty strong and ITW could be on the verge of a breakout.  
However, since our strategy was to only play ITW toward the top 
of its trading range we're going to follow our plan.  Check out 
the rise in option values from when we picked ITW to today: 
December 85 calls $7.10 to $11.40, Dec 90s $3.40 to $6.80, Dec 
95s $1.20 to $2.90, Jan 85s $7.70 to $11.70, Jan 90s $4.20 - 
$7.20 and Jan 95s $1.80 - $3.60.

Picked on October 27 at $90.89
Change since picked:    + 4.55
Earnings Date         10/19/04 (confirmed)
Average Daily Volume =     1.2 million 
Chart =




PUTS
^^^^

None


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


OI  = Open Interest - the number of open contracts outstanding.
Last Trade @ = Indicates where the option traded last.
ITM = In the money
ATM = At the money
OTM = Out of the money
ADV = Average Daily Volume

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

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


************************Advertisement*************************
We got trailing stops!
* Trade online with trailing stops at optionsXpress, at no extra cost 
* Trailing stops based on the option price or the stock price
* Also place Contingent, Stop Loss, and "One Cancels Other" orders
* Options as low as $1.25/contract, or $12.95 Minimum--NO Hidden Fees!
Go to http://www.optionsxpress.com/marketing.asp?source=oinvest33
Note: Options involve risk. Risk disclosure: 
http://www.optionsxpress.com/welcome_risk_index.htm
**************************************************************


 

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

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


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

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

Contact Support




The Option Investor Newsletter                   Sunday 11-14-2004
Sunday                                                      3 of 5

In Section Three:

Current Calls: SLB, OSK, LEH, IBM, GDW, FDX, EBAY, DHR, COP
New Calls: QCOM, MUR, EOG
Current Puts: MXIM
New Puts: None

************************Advertisement*************************
We got trailing stops!
* Trade online with trailing stops at optionsXpress, at no extra cost 
* Trailing stops based on the option price or the stock price
* Also place Contingent, Stop Loss, and "One Cancels Other" orders
* Options as low as $1.25/contract, or $12.95 Minimum--NO Hidden Fees!
Go to http://www.optionsxpress.com/marketing.asp?source=oinvest33
Note: Options involve risk. Risk disclosure: 
http://www.optionsxpress.com/welcome_risk_index.htm
**************************************************************



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

ConocoPhillips - COP - close: 87.89 change: +1.13 stop: 81.99

Company Description:
ConocoPhillips is an integrated petroleum company with interests 
around the world. Headquartered in Houston, the company had 
approximately 35,800 employees, $89 billion of assets, and $129 
billion of annualized revenues as of Sept. 30, 2004.
 (source: company press release)

Why We Like It:
Crude oil prices continue to sink slowly under $50 a barrel but 
that's not stopping oil-related energy stocks from turning higher.  
Both the OIX and OSX indices are starting to hint at a new leg up.  
Shares of COP are already in a MACD buy signal and look ready to 
breakout over resistance at its all-time highs near $90.00.  The P&F 
chart shows a bullish triangle breakout with a $124 price target.  
The bullish triangle patterns are usually one of the most successful 
patterns to trade.  In the news COP won final approval from the U.S. 
to begin drilling in Alaska's National Petroleum Reserve.  Readers 
can choose to buy a dip to $86.00 or buy a breakout over $89-90.  We 
are going to leave our stop loss at $81.99 for now.  Our year-end 
target remains the $100 region.

Suggested Options:
We are going to suggest the December and January calls.  Our 
favorites are the January's.

BUY CALL DEC 80 COP-LP OI= 230 current ask $8.40
BUY CALL DEC 85 COP-LQ OI=1153 current ask $4.20
BUY CALL DEC 90 COP-LR OI=1131 current ask $1.20

BUY CALL JAN 85 COP-AQ OI=3215 current ask $5.20
BUY CALL JAN 90 COP-AR OI=3331 current ask $2.25
BUY CALL JAN 95 COP-AS OI= 639 current ask $0.80

Annotated chart:


Picked on November 03 at $85.50
Change since picked:     + 2.39
Earnings Date          10/27/04 (confirmed)
Average Daily Volume =      3.0 million 




---

Danaher - DHR - close: 57.91 change: +0.40 stop: 53.99 *new*

Company Description:
Danaher, a leading industrial company, designs, manufactures and 
markets innovative products, services and technologies with 
strong brand names and significant market positions.
(source: company press release)

Why We Like It:
DHR continues to ride the market's new wave higher.  Shares 
bounced from the simple 10-dma as we expected they might and now 
shares challenge minor resistance at $58.00.  The company 
recently reaffirmed its Q4 guidance and one analyst firm 
reiterated their "buy" outlook on the stock.  Like many stocks 
these days shares of DHR are looking a bit overbought and due for 
a pull back.  Readers may want to consider taking some money off 
the table or cashing out all together and then re-entering on a 
dip.  Our exit target remains the $60 level for DHR but the rise 
in value for our suggested options makes doing a little profit 
taking a tempting idea.  The December 50s have risen from $5.80 
to $8.30.  The December 55s have climbed from $1.95 to $3.60.  
The January 55s from $2.50 to $4.20 and the January 60s from 
$0.65 to $1.20.  As a reader it's much easier for you to jump in 
an out.  If you're waiting for a dip we could easily see DHR dip 
back to the $56.00 level before bouncing again.  That would be 
the next bullish entry point.  We are raising our stop loss to 
$53.99.

Suggested Options:
Short-term traders can choose the Novembers, Decembers or January
calls.  We're going to suggest the Decembers and January strikes.
See the above commentary for entry suggestions.

BUY CALL DEC 50 DHR-LJ OI= 846 current ask $8.30     
BUY CALL DEC 55 DHR-LK OI=1703 current ask $3.60
BUY CALL DEC 60 DHR-LL OI= 142 current ask $0.60

BUY CALL JAN 55 DHR-AK OI=2715 current ask $4.20
BUY CALL JAN 60 DHR-AL OI= 434 current ask $1.20

Annotated chart:

 
Picked on October 27 at $54.99
Change since picked:    + 2.92
Earnings Date         10/21/04 (confirmed)
Average Daily Volume =     1.3 million 



---

eBay Inc. - EBAY - close: 109.89 chg: +2.05 stop: 99.99*new*

Company Description:
eBay is The World's Online Marketplace®. Founded in 1995, eBay 
created a powerful platform for the sale of goods and services by 
a passionate community of individuals and businesses. On any 
given day, there are millions of items across thousands of 
categories for sale on eBay. eBay enables trade on a local, 
national and international basis with customized sites in markets 
around the world. Through an array of services, such as its 
payment solution provider PayPal, eBay is enabling global e-
commerce for an ever- growing online community.
(source: company press release)

Why We Like It:
Uh-oh!  It's decision time.  This has been a very bullish week 
for EBAY.  The stock is up more than six points from when we 
added it to the play list.  Our short-term target was $110 and 
shares hit $110.25 on Friday afternoon.  EBAY is looking short-
term overbought and due for a pull back but will it pull back?  
EBAY watchers know that the stock can defy gravity at times but 
what to do when it's your money on the table?  Look at the rise 
in option values from when we picked EBAY to today:  December 
100s $7.00 to $11.70, Dec 105s $4.20 to $7.90, Dec 110s $2.15 to 
$4.90, Dec 115s $1.05 to $2.75, Jan 100s $8.80 to $13.40, Jan 
105s $6.00 to $10.00, Jan 110s $4.00 to $7.20, Jan 115s $2.50 to 
$5.00 and the Jan 120s $1.50 to $3.30.  

With the above "gains" in the options we strongly suggest readers 
consider taking some or all of their money off the table.  We 
will still target a move to $120 by year's end but traders could 
exit now and then re-enter on a dip.  We'll watch for a dip back 
toward $105.  Right now we would only enter new bullish positions 
on a dip. We are raising our stop to $99.99.

Suggested Options:
We are going to suggest the December or January calls.
Watch for a dip before considering new positions.

BUY CALL DEC 100 XBA-LT OI= 6870 current ask $11.70
BUY CALL DEC 105 XBA-LA OI=11542 current ask $ 7.90
BUY CALL DEC 110 XBA-LB OI=15983 current ask $ 4.90
BUY CALL DEC 115 XBA-LC OI= 3635 current ask $ 2.75

BUY CALL JAN 100 XBA-AT OI=22547 current ask $13.40
BUY CALL JAN 105 XBA-AA OI= 8621 current ask $10.00
BUY CALL JAN 110 XBA-AB OI=12328 current ask $ 7.20
BUY CALL JAN 115 XBA-AC OI= 9909 current ask $ 5.00
BUY CALL JAN 120 XBA-AD OI= 4150 current ask $ 3.30

Annotated chart


Picked on November 80 at $103.69 
Change since picked:      + 6.20
Earnings Date           10/20/04 (confirmed)
Average Daily Volume =      10.4 million 




---

Fedex Corp - FDX - close: 95.37 change: +0.57 stop: 89.99*new*

Company Description:
FedEx Corp. provides customers and businesses worldwide with a 
broad portfolio of transportation, e-commerce and business 
services. With annual revenues of $26 billion, the company offers 
integrated business applications through operating companies 
competing collectively and managed collaboratively, under the 
respected FedEx brand. Consistently ranked among the world's most 
admired and trusted employers, FedEx inspires its more than 
240,000 employees and contractors to remain "absolutely, 
positively" focused on safety, the highest ethical and 
professional standards and the needs of their customers and 
communities. (source: company press release)

Why We Like It:
It's decision time with our FDX play as well.  The stock has been 
very strong following/leading an exceptionally strong Dow Jones 
Transportation index.  The TRAN index recently broke out over the 
3600 level to hit new five-year highs (maybe six-year highs) and 
shows no signs of slowing down.  Of course the problem here is 
that the TRAN looks incredibly overbought and extended up 12 out 
of the last 13 weeks.  FDX looks overbought and extended as well 
but not to the same degree.  We're impressed with FDX's relative 
strength.  The company hit new all-time highs Thursday and Friday 
in spite of news that the company is fighting with the U.S. Dept. 
of Transportation.  The DOT believes it overpaid FDX by $29 
million.  FDX obviously disagrees and plans to fight it.  
However, the company (FDX) is going to write off the $29 million 
anyway saying it will not affect earnings.  While FDX is less 
than $5 away from our year-end target at $100 readers should 
seriously consider taking some money off the table if not all of 
it.  The December 85 calls have risen from $5.80 to $10.80.  The 
Dec 90s from $2.55 to $6.30 and the Dec 95s from $0.80 to $2.70.  
It would be a shame to see these gains evaporate on a quick drop 
down toward short-term support at $92.  Readers could take 
profits here and re-enter on a dip.  The opportunity cost here is 
that FDX could just keep going.  It's up to you.  We're 
suggesting you take some money off the table.  If you're looking 
to enter new positions then we suggest waiting for the dip.  We 
are going to keep our stop loss wide since we plan to hold FDX 
through December.  Our new stop is $89.99.

Suggested Options:
Given our $100 target and mid-December time frame we would 
suggest the December strikes.  Wait for the dip on new entries.

BUY CALL DEC 85 FDX-LQ OI= 312 current ask $10.80
BUY CALL DEC 90 FDX-LR OI=1226 current ask $ 6.30
BUY CALL DEC 95 FDX-LS OI=1072 current ask $ 2.70

BUY CALL JAN 90 FDX-AR OI=3258 current ask $6.90
BUY CALL JAN 95 FDX-AS OI=2383 current ask $3.50

Annotated Chart:


Picked on October 21 at $89.45 
Change since picked:    + 5.92
Earnings Date         09/22/04 (confirmed)
Average Daily Volume =     1.5 million 



---

Golden West Fncl - GDW - cls: 121.23 chg: +1.63 stop: 114.99*new*

Company Description:
Headquartered in Oakland, California, Golden West is one of the 
nation's largest financial institutions with assets over $100 
billion as of September 30, 2004. The Company has one of the most 
extensive thrift branch systems in the country, with 276 savings 
branches in 10 states and lending operations in 38 states.
(source: company press release)

Why We Like It:
Financials have been a strong sector in the post-election rally 
and GDW has helped lead the way.  Shares broke through resistance 
at $118 this week hitting our trigger to go long at $118.15.  The 
rally continued on Friday with GDW breaking through round-number, 
psychological resistance at $120.  Shares are now in blue-sky 
territory at all-time highs.  With the major market indices 
overbought and due for a pull back we'd watch for a dip in GDW 
before considering new positions.  Our target remains the $128-
130 region.  Short-term traders may actually want to do some 
profit taking with the sharp rise in option values already. We 
are going to raise our stop loss to $114.99.

Suggested Options:
We are going to suggest the December calls.  

BUY CALL DEC 115 GDW-LC OI=298 current ask $7.40
BUY CALL DEC 120 GDW-LD OI=169 current ask $3.70
BUY CALL DEC 125 GDW-LE OI= 87 current ask $1.40

Annotated Chart:


Picked on November 10 at $118.15
Change since picked:      + 3.08
Earnings Date           10/21/04 (confirmed)
Average Daily Volume =       583 thousand   



---

Intl Business Mach. - IBM - close: 95.32 chg: +0.53 stop: 89.99*new*

Company Description:
IBM is the world's largest information technology company, with 
80 years of leadership in helping businesses innovate. Drawing on 
resources from across IBM and IBM Business partners, IBM offers a 
wide range of services, solutions and technologies that enable 
customers, large and small, to take full advantage of the new era 
of e-business. (source: company press release)

Why We Like It:
As both a Dow-component and a major tech stock IBM has been 
enjoying a very strong post-election rally.  The breakout over 
resistance at $90.00 was followed by a non-stop run toward $95.  
This was our short-term target and readers now have a decision to 
make.  We plan to hold IBM through the end of the year or until 
shares hit the $99-100 region.  However, the stock is up so 
sharply in the past two weeks IBM looks overbought and due for a 
pull back.  When you consider the increases in our suggested 
options from when we picked IBM to now you can see why we are 
suggesting that readers take profits now and then re-enter on a 
pull back.  Here's a partial breakdown on the rise in option 
values: Dec 85s $5.80 to $10.70, Dec 90s $2.25 to $5.80, Dec 95s 
$0.60 to $2.10, the Jan 85s $6.50 to $11.20, Jan 90s $3.10 to 
$6.70, Jan 95s $1.10 to $3.10.   

Readers looking for new entries can watch for a dip to the $92.00 
region and then watch for the bounce.  We are raising our stop 
loss to $89.99.

Suggested Options:
Traders can choose from the Novembers, Decembers and January
strikes.  We're going to suggest the December and January calls.

BUY CALL DEC 85 IBM-LQ OI= 5532 current ask $10.70
BUY CALL DEC 90 IBM-LR OI= 7825 current ask $ 5.80
BUY CALL DEC 95 IBM-LS OI= 8625 current ask $ 2.10
BUY CALL DEC100 IBM-LT OI= 3533 current ask $ 0.45-not suggested

BUY CALL JAN 85 IBM-AQ OI=13722 current ask $11.20
BUY CALL JAN 90 IBM-AR OI=38882 current ask $ 6.70
BUY CALL JAN 95 IBM-AS OI=28419 current ask $ 3.10
BUY CALL JAN100 IBM-AS OI=36631 current ask $ 1.05

Annotated chart:

 
Picked on October 27 at $90.00
Change since picked:    + 5.32
Earnings Date         10/18/04 (confirmed)
Average Daily Volume =     4.7 million 



---


Lehman Brothers - LEH - close: 84.00 chg: +0.08 stop: 79.95  

Company Description:
Lehman Brothers, an innovator in global finance, serves the 
financial needs of corporations, governments and municipalities, 
institutional clients, and high-net-worth individuals worldwide. 
Founded in 1850, Lehman Brothers maintains leadership positions 
in equity and fixed income sales, trading and research, 
investment banking, private equity and wealth and asset 
management services. The Firm is headquartered in New York, with 
regional headquarters in London and Tokyo and operates in a 
network of offices around the world.
(source: company press release)

Why We Like It:
Hmmm... LEH appears to be losing its leadership position in the 
broker-dealer sector.  The XBD index is up a very strong four-
weeks in a row.  Meanwhile LEH is under performing the group the 
last few days.  We're still bullish on LEH and its P&F chart 
remains positive with a triple-digit profit target.  Yet readers 
looking for new positions may want to wait for a move over $85 
again before committing capital.  LEH has only got about four 
weeks to hit our $89-90 profit target.  If LEH breaks the $82 
level we'll grow concerned but watch for a dip anyway.  The
XBD index is very extended.

Suggested Options:
Short-term traders can choose from Novembers, Decembers and 
January strikes.  We're going to suggest the Decembers.

BUY CALL DEC 80 LES-LP OI=1116 current ask $ 5.10
BUY CALL DEC 85 LES-LQ OI=2629 current ask $ 1.90
BUY CALL DEC 90 LES-LR OI=1155 current ask $ 0.45

Annotated chart:


Picked on October 26 at $80.60 
Change since picked:    + 3.40 
Earnings Date         09/21/04 (confirmed)
Average Daily Volume =     2.0 million 




---

Oshkosh Truck - OSK - close: 63.52 change: +0.31 stop: 57.00

Company Description:
Oshkosh Truck Corporation is a leading manufacturer of specialty 
trucks and truck bodies for the defense, fire and emergency, 
concrete placement and refuse hauling markets. Oshkosh Truck is a 
Fortune 1000 company with products marketed under the Oshkosh®, 
Pierce®, McNeilus®, Medtec®, Geesink, Norba and Jerr-Dan® brand 
names. The company is headquartered in Oshkosh, Wis., and had 
annual sales of $2.3 billion in fiscal 2004. (source: company 
press release)

Why We Like It:
Slow and steady can be a nice change of pace from the volatile 
moves we've seen in some stocks lately.  OSK certainly seems to 
be slowly climbing higher and we're not complaining.  Short-term 
traders can still target a quick exit near $65.00.  We're 
planning to hold OSK through the ups and downs and exit near $70 
by year's end.  No change in our stop but traders looking for new 
positions can probably wait for a dip.  Watch for any bounce 
above $60.00.

Suggested Options:
There are both December and January calls available but we are
going to suggest the January strikes.

BUY CALL JAN 55 OSK-AK OI= 466 current ask $9.50
BUY CALL JAN 60 OSK-AL OI=2514 current ask $5.30
BUY CALL JAN 65 OSK-AM OI=  65 current ask $2.30

Annotated Chart:


Picked on November 07 at $ 62.16
Change since picked:      + 1.36
Earnings Date           10/28/04 (confirmed)
Average Daily Volume =       205 thousand   



---

Schlumberger - SLB - close: 65.65 change: +1.47 stop: 61.00

Company Description:
Schlumberger is the world's leading oilfield services company 
supplying technology, project management and information 
solutions that optimize performance for customers working in the 
oil and gas industry. The company employs more than 50,000 people 
of over 140 nationalities working in 100 countries, and comprises 
two business segments. Schlumberger supplies a wide range of 
products and services from formation evaluation through 
directional drilling, well cementing and stimulation, well 
completions and productivity to consulting, software, information 
management and IT infrastructure services that support core 
industry operational processes. WesternGeco, jointly owned with 
Baker Hughes, is the world's largest seismic company and provides 
advanced acquisition and data processing services. In 2003, 
Schlumberger operating revenue was $10.12 billion.
(source: company press release)

Why We Like It:
We've been watching the buy signal emerge in shares of SLB all 
week long.  On Tuesday it produced a short-term higher-low.  On 
Thursday its MACD produced a new buy signal.  On Friday SLB broke 
through round-number resistance at $65.00 to hit our trigger at 
$65.05.  SLB's rebound from its long-term rising support appears 
complete.  Now that the stock has broken its five-week trend of 
lower highs we can look for some bullish follow through.  Our 
target remains the $70.00 level.  If there is a market dip we'd 
watch for a bounce from the $63.50-64.00 region as a new entry 
point in SLB.  

Suggested Options:
We are going to suggest the December and/or January calls.

BUY CALL DEC 60 SLB-LL OI=2640 current ask $6.20
BUY CALL DEC 65 SLB-LM OI=4741 current ask $2.40
BUY CALL DEC 70 SLB-LN OI=1413 current ask $0.55

BUY CALL JAN 60 SLB-AL OI=6855 current ask $6.80
BUY CALL JAN 65 SLB-AM OI=12922 current ask $3.30
BUY CALL JAN 70 SLB-AN OI=11839 current ask $1.15

Annotated Chart:


Picked on November 12 at $ 65.05
Change since picked:      + 0.60
Earnings Date           10/22/04 (confirmed)
Average Daily Volume =       3.9 million    




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

EOG Resources - EOG - close: 68.37 change: +2.84 stop: 63.99

Company Description:
EOG Resources, Inc. is one of the largest independent (non-
integrated) oil and natural gas companies in the United States 
with substantial proved reserves in the United States, Canada, 
offshore Trinidad and, to a lesser extent, the U.K. North Sea
(source: company press release)

Why We Like It:
EOG is another way for readers to play the next leg up in oil and 
energy.  The oil sector did not panic when crude prices broke 
technical support at the simple 50-dma.  It's also noteworthy 
that there has not been any sustained heavy selling in the group.  
It would appear that the sector is coiling for a new move higher 
and EOG looks ready now that its six-week consolidation is almost 
over.  Shares have bounced twice at the $64 level and Friday's 
rally pushed EOG over all its significant moving averages.  
Short-term technicals are already bullish and its MACD is very 
close to a new buy signal.  Meanwhile its P&F chart points to a 
$105 target.  We are a little bit early with this entry point.  
More conservative traders may want to wait for EOG to breakout 
over round-number resistance at $70.00 and break its short-term 
trend of lower highs.  Our short-term target will be $75.00 with 
a potential year-end target of $80.

Suggested Options:
We are going to suggest the December and January calls. Between
the two we'd pick the Januarys.

BUY CALL DEC 65 EOG-LM OI= 210 current ask $4.80
BUY CALL DEC 70 EOG-LN OI=1838 current ask $1.95
BUY CALL DEC 75 EOG-LO OI=1636 current ask $0.60

BUY CALL JAN 65 EOG-AM OI=3070 current ask $5.90
BUY CALL JAN 70 EOG-AN OI=3961 current ask $3.20
BUY CALL JAN 75 EOG-AO OI=1312 current ask $1.45

Annotated Chart:


Picked on November 14 at $ 68.37
Change since picked:      + 0.00
Earnings Date           10/26/04 (confirmed)
Average Daily Volume =       1.1 million    



---

Murphy Oil - MUR - close: 81.60 change: +1.49 stop: 77.49

Company Description:
The Company, headquartered in El Dorado, Arkansas, was originally 
incorporated in Louisiana in 1950 as Murphy Corporation. It was 
reincorporated in Delaware in 1964, at which time it adopted the 
name Murphy Oil Corporation. But, the Company's roots go back to 
a lumber and banking business in South Arkansas and, more 
directly, to 1907, when the first oil production was established 
in the Caddo Field in North Louisiana. Thereafter, oil and gas 
were important phases of the business. 
(source: company website)

Why We Like It:
MUR is yet another way for traders to play the next leg up in the 
oil sector.  Both the OIX index and OSX index have been 
consolidating the last six weeks and indicators on both suggest a 
new bullish breakout is just around the corner.  Like the indices 
MUR has been consolidating its September gains and its technicals 
have turned bullish.  We like the quick double-bottom near $77.50 
and the MACD indicator nearing a new buy signal.  The P&F chart 
already shows a new buy signal with a $91 target.  We'll use a 
TRIGGER at $82.25 to open the play.  Until then we'll sit on the 
sidelines.  Once triggered we'll set our short-term target at 
$87.00 and our year-end target in the $92-95 range. 

Suggested Options:
We are going to suggest the January calls.

BUY CALL JAN 75 MUR-AO OI=1473 current ask $8.50
BUY CALL JAN 80 MUR-AP OI= 434 current ask $5.00
BUY CALL JAN 85 MUR-AQ OI= 349 current ask $2.75
BUY CALL JAN 90 MUR-AR OI= 702 current ask $1.35

Annotated Chart:


Picked on November xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           10/26/04 (confirmed)
Average Daily Volume =       500 thousand   



---

Qualcomm - QCOM - close: 40.20 change: +0.11 stop: 37.50

Company Description:
QUALCOMM Incorporated (www.qualcomm.com) is a leader in 
developing and delivering innovative digital wireless 
communications products and services based on the Company's CDMA 
digital technology. Headquartered in San Diego, Calif., QUALCOMM 
is included in the S&P 500 Index and is a 2003 FORTUNE 500® 
company. (source: company press release)

Why We Like It:
QCOM's recent earnings weren't that great but the selling 
pressure never saw any follow through.  Instead shares found 
support at the bottom of its rising channel and technical support 
at the simple 100-dma like it has done for months.  Now that 
shares are rebounding from this support the technical oscillators 
have turned positive and its MACD indicator is nearing a new buy 
signal.  If you're spooked by how high and extended the NASDAQ is 
you may want to wait for a dip in the index before considering 
positions in QCOM.  Overall we think QCOM has enough relative 
strength to weather any minor dip in the NASDAQ.  We are going 
against the bearish P&F chart, which should be a caution flag.  
Currently QCOM is under the simple 40 and 50-dma's.  Therefore 
we'll use a TRIGGER at $40.51 to catch a breakout over the dma's. 
Once triggered we'll set our short-term target at $44.35, the 
current highs.

Suggested Options:
We suggest the December or January calls.

BUY CALL DEC 37.50 AAO-LU OI= 4338 current ask $3.40
BUY CALL DEC 40.00 AAO-LH OI=26013 current ask $1.75
BUY CALL DEC 42.50 AAO-LV OI= 5704 current ask $0.75

BUY CALL JAN 37.50 AAO-AU OI=22925 current ask $4.00
BUY CALL JAN 40.00 AAO-AH OI=24306 current ask $2.45
BUY CALL JAN 42.50 AAO-AV OI=15799 current ask $1.35

Annotated Chart:


Picked on November xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           11/03/04 (confirmed)
Average Daily Volume =      13.9 million    




************************Advertisement*************************
We got trailing stops!
* Trade online with trailing stops at optionsXpress, at no extra cost 
* Trailing stops based on the option price or the stock price
* Also place Contingent, Stop Loss, and "One Cancels Other" orders
* Options as low as $1.25/contract, or $12.95 Minimum--NO Hidden Fees!
Go to http://www.optionsxpress.com/marketing.asp?source=oinvest33
Note: Options involve risk. Risk disclosure: 
http://www.optionsxpress.com/welcome_risk_index.htm
**************************************************************


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

Maxim Integrated - MXIM - close: 42.51 chg: +0.09 stop: 45.51

Company Description:
Maxim Integrated Products is a leading international supplier 
of quality analog and mixed-signal products for applications 
that require real world signal processing.
(source: company press release)

Why We Like It:
It's been exceptionally tough to be a bear with the market in 
breakout mode.  Not only are individual stocks breaking but so 
are the major indices.  That's why MXIM's relative weakness makes 
it such an attractive bearish candidate.  However, even MXIM will 
have a hard time trading lower if the markets don't slow down a 
bit.  You may remember that Wells Fargo just initiated coverage 
on MXIM this Thursday with a "sell" rating.  Plus, MXIM's daily 
MACD indicator has rolled over into a new sell signal.  We 
initiated coverage on MXIM this Wednesday given its breakdown 
below rising two-month support.  Shares are testing that level 
again today as overhead resistance.  We (the bears) should be 
safe if MXIM holds under $43.  There is additional resistance at 
$45.00 but we'd start to worry if MXIM rebounded that strongly. 
We would watch for a move under $41.90 to $41.65 before 
initiating new positions. 

Suggested Options:
We are going to suggest the December puts.  

BUY PUT DEC 45 XIQ-XI OI= 521 current ask $3.30
BUY PUT DEC 40 XIQ-XH OI=3134 current ask $0.95

Annotated chart:


Picked on November 10 at $42.04
Change since picked:     + 0.47
Earnings Date          10/05/04 (confirmed)
Average Daily Volume =      6.0 million 



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

None


************************Advertisement*************************
We got trailing stops!
* Trade online with trailing stops at optionsXpress, at no extra cost 
* Trailing stops based on the option price or the stock price
* Also place Contingent, Stop Loss, and "One Cancels Other" orders
* Options as low as $1.25/contract, or $12.95 Minimum--NO Hidden Fees!
Go to http://www.optionsxpress.com/marketing.asp?source=oinvest33
Note: Options involve risk. Risk disclosure: 
http://www.optionsxpress.com/welcome_risk_index.htm
**************************************************************


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

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


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

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

Contact Support




The Option Investor Newsletter                   Sunday 11-14-2004
Sunday                                                      4 of 5

In Section Four:

Leaps:  The Bulls Are Running
Spreads and Straddles:Know When To Hold 'Em, Know When To Fold 'Em

************************Advertisement*************************
We got trailing stops!
* Trade online with trailing stops at optionsXpress, at no extra cost 
* Trailing stops based on the option price or the stock price
* Also place Contingent, Stop Loss, and "One Cancels Other" orders
* Options as low as $1.25/contract, or $12.95 Minimum--NO Hidden Fees!
Go to http://www.optionsxpress.com/marketing.asp?source=oinvest33
Note: Options involve risk. Risk disclosure: 
http://www.optionsxpress.com/welcome_risk_index.htm
**************************************************************



*****
LEAPS
*****

The Bulls Are Running

After three days of moving sideways the market got 
bored and charged ahead knocking over multiple 
resistance levels on numerous indexes. This makes
our portfolio very green but sure makes it tough
to pick new plays. 

Oil has found support at 47.50 and holding and COP
has started climbing again. Even the XLE has headed
back to higher ground despite the weakness in oil. 
I personally feel that oil will find a support level
in the 40s and then begin a new climb once the equity
euphoria dims. For that reason I do not want to exit
our energy plays and would rather keep the stops just
out of range. 

A couple of our past drops, MMM and Citicorp have
gone on to make us proud and anybody that did not
take the exit should be closed at an eight month
high. 

Our new pick from last week, Federal Express, shook
off news that the government had overpaid them on
the post 9/11 airline recovery program by $29 million
and continued higher to a new 52-week high. 

News Corp is finally trading in the U.S. again and
we are actually up in that trade and the future is
bright!

EBAY is setting the world on fire and taking us along
for the ride. It is up nearly +$20 from our entry point.

The laggard has been the SMH LEAPs due to the SOX
reluctance to join the party. If the gains from 
Thr and Fri are repeated next week the SMH could go
to the head of the class. 

Unfortunately RIMM found a bid before the price 
returned to our new entry point and we are still
waiting. 

The majority of stocks are so extended I would really
like to see a pullback before adding anything else. 
Unfortunately I don't see that happening any time 
soon. If we do get a pullback it is likely to be
short, sharp and unexpected. It is not an environment
for picking long entries. 

There are quite a few stocks I like but can't justify
adding them to the portfolio under the current 
conditions. I am going to list a few and you can
pick the ones you like for your own risk profile. 

CY  - $11.22 Cypress Semi - saucer at 11.25
PD  - $97.60 Phelps Dodge - new high imminent
PVN - $16.82 Providian Financial 
DHR - $57.91 Danaher - breakout imminent 
SNY - $38.73 Sanofi-Aventis - new wonder drug
UBS - $80.10 UBS - breakout, strong earnings
PKI - $22.13 Perkin Elmer - breakout imminent 
LMT - $58.50 Lockheed Martin - Daily new highs
SCH - $10.43 Schwab - broke resistance at $10
MUR - $81.53 Murphy Oil - Cycling with oil
ELX - $12.35 Emulex - recovery underway
STM - $20.50 Stmicroelectronics - rebound underway
AGN - $79.31 Allergan - dollar a day
AAPL - $55.48 Apple Computer - Disney deal? $56 wedge
ADSK - $60.50 Autodesk - going vertical
ASML - $15.77 ASML Holding - leading chip recovery
ATVI - $16.19 Activision - $17 breakout ahead
MSTR - $66.57 Microstrategy - Broke $65 resistance
QLGC - $34.11 Qlogic - new six month high
QCOM - $40.20 Qualcomm - dip recovery
SNDK - $21.81 Sandisk - rebounding from disaster


I believe it is too early to start tightening up our
stops and will begin doing that after Thanksgiving. 
We want to take advantage of any end of year rally
then prepare to go to the put side if a new downtrend
develops. 

If you have any comments or suggestions about the
leaps section please email them to:

leaps @ OptionInvestor.com  

*******************   
New Plays
*******************   

None


*******************   
Dropped Plays
*******************   

None


******************************     
New Watch List Plays Triggered
******************************  


ADBE $58.91  Triggered at $57.00 


****************************     
Current Portfolio: 
****************************    

Position Summary Table



*******************   
New Plays
*******************   

None 


****************************     
Play Updates 
****************************  


FDX - Federal Express $95.37  **Stop $89.00**
Entry $91.93 (11/5)

Federal Express shook off a bill from the government
for $29 million in overpayments from the airline
recovery act after 9/11. FDX said it would fight 
the refund vigorously. FDX said it would take a 
charge to cover the potential payment but it would
not impact earnings. Nice to have more business
than you can handle. 

BUY 2006 $ 95 LEAP Call WFX-AS @ $8.00
BUY 2007 $100 LEAP Call VFX-AT @ $10.60 
SELL 2005 Jan $95 Put FDX-MS @ $4.60
(selling the put offsets the price of the call)

FDX Chart





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

XLE - S&P Energy SPDR $35.90  ** Stop 33.90 **

Nice rebound on the XLE despite the continued drop 
in oil. The oil service sector and the big integrated
companies are providing the lift. 
 

2006 $32 LEAP Call WHA-AF 
2006 $35 LEAP Call WHA-AI 

Entry $33.92 on 9/20
http://members.OptionInvestor.com/leaps/Lp_091904_1.asp

XLE Chart




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


INTC - Intel Corp $23.71  **Stop $22.00**

Nice spike by Intel on Friday as the SOX found a bid.
AMD had all the good news but Intel followed right
along.  

Current position:
2006 $22 LEAP Call WNL-AX 
2006 $25 LEAP Call WNL-AE 

Entry $20.00 Sept 3rd
http://members.OptionInvestor.com/leaps/Lp_071804_1.asp

Intel Chart




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


TYC - Tyco Intl. $34.45  **Stop $32.00**

Tyco blasted past resistance at $33 and is headed for
a test of the 2002 highs at $36. Currently at a two
year high and moving fast. Very high beta with the Dow
and any continued Dow gains will benefit Tyco.  

2005 $30 LEAP Call TYC-AF cost $2.15 
2006 $30 LEAP Call WPA-AF cost $4.00 
July $25 insurance put - expired - cost $.55

Entry 5/18 $28.32
http://members.OptionInvestor.com/leaps/Lp_051604_1.asp

Tyco Chart


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


JNPR - Juniper Networks $28.48 **Stop $25.50**

Juniper broke out over uptrend resistance at $28 and
appears headed for a strong test of the 52-week high
at $30. Cisco earnings helped energize Juniper when
analysts realized how much market share Juniper was
getting. 

2006 $25 LEAP Call WBW-AE cost $3.50 
Insurance = Sept-$17.50 Put (expired) cost 50 cents.  

Entry $20.19 (8/16)
http://members.OptionInvestor.com/leaps/Lp_081504_1.asp

JNPR Chart


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


COP - Conoco Phillips $87.89    **Stop 83.00**

COP is rebounding from the oil decline and nearing
the all time highs again at $90. Any upward blip in
oil prices and we could easily be over $90.  

COP remains in the top three recommended investments
in the energy sector and it is racing to acquire new
properties. Go oil!

The leap is up +140% over the entry price. 

Current position:
Jan-2006 $75 LEAP Call YRO-AO at $6.70 now $16.70

Entry $73.30 August 30th   
http://members.OptionInvestor.com/leaps/Lp_082904_1.asp

COP Chart




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


NWS - News Corp $18.08 

NewsCorp finally completed the move to the NYSE and
is trading under NWS again. The move also produced
a 2:1 split and the shares are trading at $18 instead
of $33.61 where it ceased trading prior to the move.
This is the equivalent of $36.16 in pre split dollars.

There is still some confusion on the options. I am
checking on how the symbols changed. The WLN-AH
symbol is no longer valid. Normally in a stock 
split you end up with two contracts at 1/2 the 
original strike price. Instead the current symbols
are showing 200 shares instead. I will update this
next Sunday with the correct change. 

Current position: 
2006 $40 LEAP Call WLN-AH/WNQ-AH at $3.83 

Initial play description:
http://members.OptionInvestor.com/editorplays/edply_041104_1.asp
http://members.OptionInvestor.com/editorplays/edply_041804_1.asp


NWS Chart

NWS Chart


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

UPL - Ultra Petroleum $50.87  **Stop $46.00**

Strong bounce by UPL after several analysts commented
on how strong their outlook was for 2005. Still holding
below the October highs but well off the lows.    

JAN-2006 $45 LEAP Call WSS-AI 
JAN-2006 $50 LEAP Call WSS-AJ 

Entry $45.50 9/21
http://members.OptionInvestor.com/leaps/Lp_090504_1.asp

UPL Chart


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

EBAY - EBAY $109.89      ** Stop $97.00 **

EBAY exploded past the $100 barrier last week and
is showing no indications of failure. Resistance
should be around $112 but a Nasdaq could easily
see that broken.     

We are well into stock split territory. Ebay last
announced a 2:1 split in July 2003 at $100.00 and
in April 2000 near $100.


2006 $ 90 LEAP Call YRL-AR 
2006 $100 LEAP Call YRL-AT 

Entry $90.00 on 9/22
http://members.OptionInvestor.com/leaps/Lp_072504_1.asp

EBAY Chart



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

MER - Merrill Lynch $56.95   ** Stop $53.50 **
               
Merrill is benefiting from the post election bloom 
for financial stocks. Next resistance is $58.  

2006 $50 LEAP Call WZM-AJ 
2006 $55 LEAP Call WZM-AK 

Entry $51.00 on 9/20
http://members.OptionInvestor.com/leaps/Lp_071804_1.asp

MER Chart




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

SYMC - Symantec - $60.77   ** Stop $55.00 **

SYMC has slowed its upward progress since the AOL
announcement but there is a 2:1 split ahead that
should provide lift. Also, once the next virus/worm
hits the airwaves the AOL announcement will be
forgotten. 

2:1 Split announced Oct-20th

2006 $50 LEAP Call YAG-AJ @ $10.70 
2006 $55 LEAP Call YAG-AK @ $8.00 
2006 $60 LEAP Call YAG-AL @ $5.70 

Entry $53.00 on 9/27
http://members.OptionInvestor.com/leaps/Lp_080804_1.asp

SYMC Chart



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

XMSR - XM Satellite Radio $33.89  ** Stop $32.00 **

XMSR is still stuck under $34. It has been trading there 
for over a week and can't break through. I believe it
is somebody unloading and once they run out of stock
we should move higher on the XMSR good news. 

Current position:
2006 JAN-$30 LEAP Call YLX-AF @ $6.60 
2006 JAN-$32 LEAP Call YLX-AZ @ $5.60
2006 JAN-$35 LEAP Call YLX-AG @ $4.60 

Entry $29.15 on 10/4
http://members.OptionInvestor.com/leaps/Lp_100304_1.asp

XMSR Chart



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

ADBE $58.91 Adobe Systems   ** Stop $56.00 **
Entry $57.00 (11/10)

Nice dip by ADBE on Wednesday to just below $57
and just low enough to trigger our entry before
racing off to close at a new high on Friday. 

ADBE predicted +25% growth to continue and said 
better than expected sales growth in multiple
product lines was helping performance. 

Buy 2007 $65 LEAP Call VAE-AM @ $8.90
Sell APR $60 Put AEQ-PL @ $5.50 to offset
the price of the leap. 

Entry $57.00 (11/10)
http://members.OptionInvestor.com/leaps/Lp_110704_1.asp

ADBE Chart



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


DIA  $105.62 Dow Diamonds Trust **Stop 102.50**

If we can just get over 10550 we should be good to 
go to 10750. I am very surprised by the strength 
of this rally and we are already up +60+ to +75%.
I thought about closing the positions with a plan
to reenter but there is nothing that says the Dow
is going to fail. I raised the stop and we will
hope for the best. 

Stop was raised to 102.50
 
2006 $100 LEAP Call YGF-AV @ $6.30
2006 $104 LEAP Call YGF-AZ @ $4.20
2006 $108 LEAP Call YGF-AD @ $2.90
2006 $112 LEAP Call YGF-AH @ $2.00

Entry 10/14 @ $99.00

DIA Chart



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

SMH  $33.03 Semiconductor Holders ** Stop $30.50 **

Chips are starting to turn green and a move over
$34 should produce some breakout short covering.
We should be safe in our current position and
ready to rumble. 

2006 $30 LEAP Call YRH-AF @ 5.20
2006 $35 LEAP Call YRH-AG @ 3.12
Sell 2006 $55 LEAP Put YRH-MK @ 24.30 

Entry $30.50 (10/19)

SMH Chart



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

QQQ  $38.63 Nasdaq 100   **Stop $36.50**

The Nasdaq QQQ Tracking Stock is on the verge of a 
breakout at $38.65. We have already moved to a new
eight month high and the uptrend is very strong. 
If the chip stocks would find a bid we could really
get this party started.  
 
Entry $36.50 (10/27)
2006 $35 LEAP Call YWZ-AI @ $5.10
2006 $37 LEAP Call YWZ-AD @ $3.90

QQQ Chart




****************************    
LEAPS Watch List
****************************    

Get out the Magnifying Glass 

No new entries. We have a strong portfolio and 
no need to pile up risk. 

The market is very overextended and we need to 
let it run or let it rest before looking for new
candidates. 

I posted a list in the general commentary article
containing a lot of possibles but I will not be 
playing them here unless something changes. 


***********************   
Dropped Entries 
***********************   

none


***********************   
New Watch List Entries 
***********************    

None


************************   
 
LLL $72.18 L-3 Communications 

We should have taken the entry at $68.86 last week.
On Thursday LLL was added to the S&P and spiked 
+$4 to $73 before easing at Friday's close. I
would avoid it now until the S&P volatility eases.

LLL is a maker of bomb detection systems and has a
strong backlog of contracts for the airlines. They
have several product lines besides these systems 
but explosives detection has become a worldwide
market. 

Target the 100-day average for an entry at $63.50

Buy 2007 $75 LEAP Call OOY-AO 

LLL Chart



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

RIMM - Research in Motion $83.00 **Target $70.00**

RIMM came within $2 of out entry at $70 but rebounded
on some good news not related to the case. RIMM is
highly volatility right now and I would rather wait
for our entry at $70 than force a trade. 

We were stopped out at the open on the Nov-4th at $81
after a massive drop in RIMM on the third. There was 
a rebound attempt by the momentum players but Friday
saw another washout.  

RIMM is said to be losing a patent case against NTP
and the ruling could come at any time. RIMM has been
setting aside a reserve of 8.5% of Blackberry sales 
in case it lost the trial. The actual impact on RIMM
of a loss will not be as material as the drop already
seen in the stock price. Analysts expect a new drop
but a quick rebound. 

Because of the massive nearly -$20 drop in three days
I feel most of the damage has been done. I am going to
get back in with a potential entry at $70. Should RIMM
win the case it could hit $100 in a single day.

BUY 2007 $100 LEAP Call OHR-AE 
SELL 2007 $90 LEAP Put  OHR-ME 

Selling the put gives you a net credit of $16.60
and a free ride once RIMM gets over $90. Maintain
a stop on both the put and call. 

http://members.OptionInvestor.com/leaps/Lp_092604_1.asp

RIMM Chart  








************************Advertisement*************************
We got trailing stops!
* Trade online with trailing stops at optionsXpress, at no extra cost 
* Trailing stops based on the option price or the stock price
* Also place Contingent, Stop Loss, and "One Cancels Other" orders
* Options as low as $1.25/contract, or $12.95 Minimum--NO Hidden Fees!
Go to http://www.optionsxpress.com/marketing.asp?source=oinvest33
Note: Options involve risk. Risk disclosure: 
http://www.optionsxpress.com/welcome_risk_index.htm
**************************************************************


*******************
SPREADS & STRADDLES
*******************

Know When To Hold 'Em, Know When To Fold 'Em
By Mike Parnos

It wasn't in the cards.  The hand we were dealt this month began 
with the greatest of expectations.  However, after placing our 
bets, we are rapidly learning that the market was dealt a royal 
flush.  It's become a matter of survival -- a matter of 
preserving trading capital -- a matter of knowing when to fold 
our hand and to wait for the next playable hand.

When the OEX failed to move lower after the open, it was time to 
salvage what we could from the position.  As the OEX began to 
move up with the rest of the market, we had to halt the bleeding.  
We closed out the 555/565 bear call spread at $5.30.  We took in 
$1.30 of premium when the trade was established.  The result is a 
loss of $4,000.

The Last Man Standing - For The Moment
Our SPX 1185/1200 is the last man standing -- at least as far as 
Iron Condors are concerned.  With the SPX at less than a point 
below our short strike, we are going to be more proactive in 
closing out this position.  The market is way overdue for a 
retracement.  I would have bet the ranch that the 1185/1200 bear-
call spread was safe -- but I didn't.  The market has barely even 
paused on this movement upwards over the past 14 trading 
sessions.  As things stand, it would cost about $4.65 to close 
the bear call spread.  We can't let it get too far out of hand.  
As it is, it will take more than a few months to make back our 
November losses.

A Passing Thought
The SPX has plowed through one resistance level after another.  
In technical analysis, it is commonly believed that, once a 
resistance level has been breached, it becomes a potential 
support level on the way down.  But that means we have to believe 
in resistance levels to begin with.  This month's market activity 
is enough to shake one's faith in technical analysis, Santa Claus 
and the Easter Bunny.

A number of traders find themselves caught between a rock and a 
hard place.  They had SPX positions like the 1160/1180 bear call 
spread (that we closed last week in the newsletter) and they 
still haven't closed them.  Both strikes are in the money and, if 
you continue to do nothing, you will take the full 20-point hit.  
By the way, if you were to close the 1160/1180 bear call spread 
on Monday, you may only be facing a 17-point loss.  

Let's try to mitigate the loss -- a little -- and I mean a 
LITTLE.   Say you have the above 20-point bear call spread.  
You've already closed out the bull put spread of your Iron Condor 
for a nickel.  Let's see how much we can take in by placing 
another November bull put spread below a support(?) level.

Sell 10 SPX Nov. 1160 puts
Buy 10 SPX Nov. 1140 puts
Credit of about $.80 ($800).

Remember, I said a LITTLE!  If the SPX continues up, your new 
Nov. put position will expire worthless and you've salvaged a few 
bucks.  If the SPX reverses (don't hold your breath) and you are 
still in the bear call spread, you will benefit substantially 
more in reduced losses.  And, you have close to a 25-point 
cushion on the downside before the 1160 put is threatened.

If you're more aggressive, you can put on the bull put spread a 
little closer to where the SPX is trading.  The 1165/1145 bull-
put spread would yield about $1.15.  The 1170/1150 bull-put 
spread would yield about $1.90.  If you have a different bear 
call spread configuration, all the strikes are available for 
potential bull-put spreads.

The obvious solution would have been summoning up the self-
discipline to fold the bear call spread as it breached the 1160 
strike and taking an acceptable (though distasteful) loss.   If 
you've let it go too far, you're in the process of learning an 
expensive lesson.  Lose the money, but retain the lesson -- or 
you'll be trading baseball cards instead of options before you 
know it.
_____________________________________________________________

What?  No Quickies?
You're kidding, right?  Our quickie plays are based on the 
indexes being range-bound.  Hopefully, they're be range-bound 
again soon, but they sure as hell aren't now.

If you want to do a short-term trade, throw on a bull put spread 
on the SPX (see above for suggestions).  A 560/555 OEX bull-put 
spread might yield $.80-.90, but it's only 6 points from where 
the OEX closed.   In this market, our typical quickies are not 
a good idea.  If you keep it in your pants (your money, of course), 
you're not in danger of getting it chopped off.
____________________________________________________________

December Positions
A reminder, you don't necessarily want to initiate new December 
positions at this point.  Let's watch for a while and see if/when 
the market stalls and evaluate at that point.  Patience, my 
friends.  Patience.
____________________________________________________________

NOVEMBER CPTI POSITIONS
November Position #1 - SPX Iron Condor - 1184.17
We sold 12 SPX November 1185 calls and bought 12 SPX November 
1200 calls with a credit of about $1.25 ($1,500). Then we sold 9 
SPX November 1070 puts and bought 9 SPX November 1050 puts for a 
credit of about $1.65 ($1,485). Total credit and potential profit 
of about $2,985. The maximum profit range is from 1070 to 1185. 
The maintenance is $18,000. The potential return on risk is about 
20%. 
November Position #2 - SPX Iron Condor - 1184.17
Considering the downward market movement, I felt it is 
appropriate to initiate a SPX position with different parameters. 
We sold 10 SPX Nov. 1160 calls and bought 10 SPX Nov. 1180 calls 
for a credit of about $1.40 ($1,400). Then we sold 10 SPX Nov. 
1025 puts and bought 10 SPX Nov. 1005 puts for a credit of about 
$1.20 ($1,560). Profit potential was about $2,960. Closed for 
$3,840 loss. 
November Position #3 - OEX Iron Condor - 566.22
We sold 10 OEX Nov. 500 puts and bought 10 OEX Nov. 490 puts for 
a credit of about $.70 ($700). Then we sold 10 OEX Nov. 555 calls 
and bought 10 OEX Nov. 565 calls for a credit of about $.60 
($600). Total net credit and maximum profit of $1.30 ($1,300).  
On Friday we closed the trade for a $4,000 loss. (see article 
above).

November Position #4 - RUT - Iron Condor - 621.98
We sold 10 RUT Nov. 520 puts and bought 10 RUT Nov. 510 puts for 
a credit of about $.70 ($700). Then we sold 10 RUT Nov. 610 calls 
and bought 10 RUT Nov. 620 calls for a credit of about $.60 
($600). Total net credit and maximum profit of $1.30 ($1,300). 
Closed for $2,800 loss.  
 
ONGOING POSITIONS
QQQ ITM Strangle - Ongoing Long Term -- $38.66
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. June $34 calls and $37 puts -- total net credit 
of $750. We rolled out to the July $34 calls ($.20 credit) and 
$37 puts ($.60 credit) and took in a credit of $.80 ($800). We 
rolled to the August $34 calls and $37 puts, taking in a credit 
of $900. We rolled to the Sept. $34 calls and $37 puts, yielding 
$.45 or $450 for the cycle. For October we were again limited to 
a $.45 ($450) rollout. We rolled to the November. $34 calls and 
$37 puts for a total of $.70 ($700). Our new total credit is now 
$12,900. 
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 conservative cash flow generating strategy. 

ZERO-PLUS Strategy. OEX - 566.22
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. We own 3 OEX December 2006 540 calls @ $81 (x 300 = 
$24,300). Our cash position as of August expiration was $8,390. 
In September we added another $975 for a total of $9,365. In 
October we added $650 for a new total of $10,015. 

Zero-Plus Position For November
November bull put spread 500/490 for credit of $.70 x 5 = $350. 
November bear call spread 555/565 for credit of $.60 x 5 = $300. 
If all goes well, we'll be able to add another $650 to our cash 
position.  
 
SPX "Sure Thing" Strategy - 1184.77
Formerly called the "Credit Spread Boogie." We sold 3 SPX 1120 
October puts and bought 3 SPX 1095 October puts for a net credit 
of about $6.50 ($1,950). The initial maintenance was $7,500. When 
the SPX traded in the low 1100s, it was time for an adjustment. 
We closed out the original bull put spread for $13.20 ($3,960). 
We then opened a seven-contract position of an 1115/1140 bear 
call spread, taking in $6.35 ($4,445). We took in some extra 
premium. Our new profit potential is $2,435 -- if SPX closes 
below 1115. 
We've been getting whipsawed. Our most recent position was a 
November 14-contract 1120/1095 bull put spread at $7.00 ($9,800). 
The maintenance is getting pricey at $35,000. That's why this 
strategy is not for everyone. Our potential profit is still 
$2,435. We had to close the 1120/1095 bull put spread and we 
initiated a new 1115/1140 bear call spread. We picked up another 
$350 in premium to $2,785, but our maintenance is now $70,000. 

Once more with feeling. I know this is getting out of hand, but 
we have to play out the hand. We closed out our 1115/1140 bear 
call spread and now have 60 contracts of a November 1125/1100 
bull put spread. We've taken in a total of $2990 in premium and 
our maintenance is now $150,000. I hope this is the last of it. 
 
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. 
Mike Parnos, Your Options Therapist and CPTI Master Strategist 
 
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. 



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

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


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

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

Contact Support




The Option Investor Newsletter                   Sunday 11-14-2004
Sunday                                                      5 of 5

In Section Five:


Spreads and Straddles:  Retail Data Spurs Buying Spree!
Premium-Selling Plays: Naked Puts and Calls


************************Advertisement*************************
We got trailing stops!
* Trade online with trailing stops at optionsXpress, at no extra cost 
* Trailing stops based on the option price or the stock price
* Also place Contingent, Stop Loss, and "One Cancels Other" orders
* Options as low as $1.25/contract, or $12.95 Minimum--NO Hidden Fees!
Go to http://www.optionsxpress.com/marketing.asp?source=oinvest33
Note: Options involve risk. Risk disclosure: 
http://www.optionsxpress.com/welcome_risk_index.htm
**************************************************************


*******************
SPREADS & STRADDLES
*******************

 
Retail Data Spurs Buying Spree!
By Ray Cummins

Stocks closed higher for a third consecutive week amid bullish 
retail sales data and favorable consumer sentiment.

The Commerce Department report said retail sales climbed 0.2% in
October, while the University of Michigan's consumer sentiment
index recorded a 95.5 reading for November, notably higher than
October and above consensus expectations.  Investors were elated
with the news and it showed in their trading activity.  The Dow
Jones industrial average ended 69 points higher at 10,539, with
Proctor & Gamble (NYSE:PG), Alcoa (NYSE:AA) and General Electric
(NYSE:GE) among the best performers.  The NASDAQ composite index
added 24 points to close at 2,085, as Dell Computer (NASDAQ:DELL)
set the pace after a favorable profit report.  The S&P 500 index
finished up 10 points at 1,184, a 2-year high.  Advancing issues
outnumbered decliners by more than 5 to 2 on the New York Stock
Exchange, on volume of 1.54 billion.  Breadth on the technology
exchange was nearly 3 to 2 in favor of winning issues with 2.03
billion shares changing hands.  Bond prices also moved higher.
The benchmark 10-year note ended the day up 6/32, yielding 4.22%.
 
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SUMMARY OF CURRENT POSITIONS - AS OF 11/12/04
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

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.


PUT-CREDIT SPREADS

Stock  Pick   Last   Mon  L/P   S/P  Credit   CB     G/L   Status

BSC    94.16  98.55  NOV  80.0  85.0  0.65   84.35   0.65   Open
BTU    60.07  68.46  NOV  50.0  55.0  0.60   54.40   0.60   Open
MRVL   28.84  30.80  NOV  22.5  25.0  0.35   24.65   0.35   Open
COST   44.69  49.12  NOV  40.0  42.5  0.30   42.20   0.30   Open
NEM    46.25  49.65  NOV  40.0  42.5  0.30   42.20   0.30   Open
INSP   47.25  55.83  NOV  35.0  40.0  0.85   39.15   0.85   Open
BG     41.96  48.35  NOV  35.0  40.0  0.50   39.50   0.50   Open
ADBE   53.57  58.97  NOV  45.0  50.0  0.50   49.50   0.50   Open
VRNT   37.73  39.33  NOV  30.0  35.0  0.55   34.45   0.55   Open
OSTK   52.63  60.20  NOV  40.0  45.0  0.60   44.40   0.60   Open
MDC    76.00  79.35  NOV  65.0  70.0  0.50   69.50   0.50   Open
SPF    53.90  58.41  NOV  45.0  50.0  0.60   49.40   0.60   Open
NEM    47.52  49.65  NOV  42.5  45.0  0.35   44.65   0.35   Open
PD     87.54  97.69  NOV  75.0  80.0  0.50   79.50   0.50   Open
EBAY  100.66 109.89  NOV  90.0  95.0  0.60   94.40   0.60   Open
CTX    53.55  55.69  NOV  45.0  50.0  0.50   49.50   0.50   Open
PIXR   84.45  86.54  NOV  75.0  80.0  1.00   79.00   1.00   Open
S      45.88  46.01  NOV  40.0  42.5  0.35   42.15   0.35   Open
VIP   121.49 119.00  DEC 105.0 110.0  0.70  109.30   0.70   Open
WLP   113.90 117.64  DEC 100.0 105.0  0.50  104.50   0.50   Open

L/P = Long Put  S/P = Short Put  CB = Cost Basis  G/L = Gain/Loss

Although currently profitable, positions in Pacificare Health
Systems (NYSE:PHS), Celgene (NASDAQ:CELG) and Guitar Center 
(NASDAQ:GTRC) have previously been closed to limit potential
losses.


CALL-CREDIT SPREADS

Stock  Pick   Last    Mon  L/C   S/C  Credit   CB    G/L   Status

AMZN   40.47  40.46   NOV  50.0  45.0  0.65   45.65  0.65   Open
CHIR   37.98  31.95   NOV  45.0  42.5  0.30   42.80  0.30   Open
FLIR   54.52  60.70   NOV  65.0  60.0  0.70   60.70 (0.00)  Open?
BIIB   59.82  59.04   NOV  70.0  65.0  0.65   65.65  0.65   Open
IFIN   36.50  40.70   NOV  42.5  40.0  0.30   40.30 (0.40)  Open?
TTWO   32.55  34.62   NOV  37.5  35.0  0.30   35.30  0.30   Open
QCOM   39.50  40.20   NOV  45.0  42.5  0.30   42.80  0.30   Open
SEPR   45.44  46.80   DEC  55.0  50.0  1.00   51.00  1.00   Open
TTWO   33.24  34.62   DEC  40.0  37.5  0.30   37.80  0.30   Open
INTU   43.14  43.48   NOV  47.5  45.0  0.30   45.30  0.30   Open
RIMM   77.75  83.00   NOV  95.0  90.0  0.50   90.50  0.50   Open
ERTS   46.97  47.59   DEC  55.0  50.0  0.65   50.65  0.65   Open
GM     39.97  40.21   DEC  45.0  42.5  0.30   42.80  0.30   Open

L/C = Long Call S/C = Short Call CB = Cost Basis G/L = Gain/Loss

Investors Financial (NASDAQ:IFIN) became an early-exit candidate
on Friday and Flir Systems (NASDAQ:FLIR), Sepracor (NASDAQ:SEPR)
and Take-Two Interactive (NASDAQ:TTWO) are on the "watch" list.
Positions in Aetna (NYSE:AET), Beazer Homes (NYSE:BZH), Hartford
Insurance (NYSE:HIG), Cigna (NYSE:CI), Chubb (NYSE:CB), Mercury
Interactive (NASDAQ:MERQ), Microchip (NASDAQ:MCHP), J.C. Penney
(NYSE:JCP), SPX Corp. (NYSE:SPW), Pediatrix Medical (NYSE:PDX),
and Express Scripts (NASDAQ:ESRX) have previously been closed.


DEBIT STRADDLES

Stock   Pick   Last   Exp.   Long   Long  Initial   Max     Play
Symbol  Price  Price  Month  Call   Put    Debit   Value   Status

NTES    40.00  51.94   NOV   40.0   40.0    5.00   12.00    Open?
NEW     55.15  64.00   NOV   55.0   55.0    4.70    9.10    Open?
SBUX    54.51  55.30   NOV   55.0   55.0    2.50    2.25    Open?

Straddles in Netease.com (NASDAQ:NTES) and New Century Finance
(NYSE:NEW) have provided large profits, thus conservative traders
should consider "locking-in" gains.  The Starbucks (NASDAQ:SBUX)
straddle is a candidate for "capital preservation" as the brief
post-earnings retreat did not result in a profitable outcome.
Traders who remained in the j2Communications (NASDAQ:JCOM) play
were rewarded with a big move in the stock on Friday, resulting
in a favorable profit for the neutral-outlook position.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

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.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

CECO - Career Education  $35.00  *** Bottom-Fishing Only! ***

Career Education (NASDAQ:CECO) is a provider of private,
for-profit, post-secondary education, with 82 campuses
throughout the United States, Canada, France, the United
Kingdom and the United Arab Emirates.  The company also
offers online education through its Online Education Group,
which includes American InterContinental University Online
and Colorado Technical University Online.  The company's
schools offer degree and diploma programs within its core
curricula of business studies, culinary arts, information
technology, visual communication and health education.

CECO - Career Education  $35.00

PLAY (less conservative - bullish/credit spread):

BUY  PUT  DEC-25.00  CUY-XE  OI=4573  ASK=$0.50
SELL PUT  DEC-30.00  CUY-XF  OI=2316  BID=$1.05
INITIAL NET-CREDIT TARGET=$0.60-$0.65
POTENTIAL PROFIT(max)=14% B/E=$29.40


__________________________________________________________________

PJC - Piper Jaffray  $48.95  *** On The Rebound! ***

Piper Jaffray Companies (NYSE:PJC) is a securities company
dedicated to delivering financial advice, investment products
and transaction execution within targeted sectors of the
financial services marketplace.  The company is engaged in
providing securities brokerage, investment banking and related
financial services to individuals, corporations, public sector
and non-profit entities in the United States.  It operates
through three major segments: Capital Markets, Private Client
Services and Corporate Support and Other.

PJC - Piper Jaffray  $48.95

PLAY (less conservative - bullish/credit spread):

BUY  PUT  DEC-40.00  PJC-XH  OI=10858  ASK=$0.25
SELL PUT  DEC-45.00  PJC-XI  OI=1358   BID=$0.80
INITIAL NET-CREDIT TARGET=$0.60-$0.65
POTENTIAL PROFIT(max)=14% B/E=$44.40



~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

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.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

BSX - Boston Scientific  $34.70  *** Next Leg Down? ***

Boston Scientific (NYSE:BSX) is a worldwide developer, maker,
and marketer of medical devices whose products are used in a
wide range of interventional medical specialties, including
interventional cardiology, peripheral interventions, vascular
surgery, neurovascular intervention, electrophysiology,
endoscopy, oncology, urology and gynecology.

BSX - Boston Scientific  $34.70

PLAY (less conservative - bearish/credit spread):

BUY  CALL  DEC-40.00  BSX-LH  OI=2148  ASK=$0.15
SELL CALL  DEC-37.50  BSX-LU  OI=2394  BID=$0.40
INITIAL NET-CREDIT TARGET=$0.30-$0.35
POTENTIAL PROFIT(max)=14% B/E=$37.80


__________________________________________________________________

MXIM - Maxim Integrated Products  $42.50  *** Sector Slump! ***

Maxim Integrated Products (NASDAQ:MXIM) designs, develops,
manufactures and sells a range of linear and mixed-signal
integrated circuits, referred to as analog circuits.  The
firm also offers a range of high-frequency design processes
and capabilities that can be used in custom designs.  Their
acquisition of Dallas Semiconductor added a product line of
over nearly 400 proprietary base products sold to over 15,000
customers worldwide.  Applications for those products include
battery management, broadband telecommunications, wireless
handsets, cellular base stations, networking, servers, data
storage and a wide variety of industrial equipment.

MXIM - Maxim Integrated Products  $42.50

PLAY (less conservative - bearish/credit spread):

BUY  CALL  DEC-50.00  XIQ-LJ  OI=1099  ASK=$0.15
SELL CALL  DEC-45.00  XIQ-LI  OI=2328  BID=$0.80
INITIAL NET-CREDIT TARGET=$0.70-$0.75
POTENTIAL PROFIT(max)=16% B/E=$45.70



~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
STRADDLES AND STRANGLES
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Based on analysis of the historical option pricing and technical
background, these positions meet the fundamental criteria for
favorable volatility-based plays.
_________________________________________________________________

COCO - Corinthian Colleges  $17.75  *** Expiration Week! ***

Corinthian Colleges (NASDAQ:COCO) is a for-profit, post-secondary
education company.  The company operates colleges and corporate
training centres in the United States and Canada.  It offers a
variety of master's, bachelor's and associate's programs through
four principal operating divisions in the United States and one
principal operating division in Canada.  The principal divisions
include Corinthian Schools division, The Titan Schools division,
The Rhodes Colleges division, The CDI Education Post-Secondary
Education division and The CDI Education Corporation Corporate
Education division.

COCO - Corinthian Colleges  $17.75

PLAY (very speculative - neutral/debit straddle):

BUY CALL  NOV-17.50  UCS-KW  OI=1193  ASK=$0.50
BUY PUT   NOV-17.50  UCS-WW  OI=132   ASK=$0.40
INITIAL NET-DEBIT TARGET=$0.80-$0.85
INITIAL TARGET PROFIT=$0.30-$0.45


_________________________________________________________________

BCSI - Blue Coat Systems  $19.93  *** A Reader's Play! ***

Blue Coat Systems (NASDAQ:BCSI) designs, develops, markets and
supports proxy appliances. Based on Blue Coat SGOS, a custom,
object-based operating system with integrated caching, these
proxy appliances leverage existing authentication systems to
enable flexible policy enforcement down to the individual user.
The Blue Coat ProxySG appliances combine proxy support of most
protocols with integrated uniform resource locator filtering,
content security, Web-virus scanning, instant messaging control,
peer-to-peer control and streaming control.  In addition, the
company manufactures an appliance called Director, which is
used primarily to manage large numbers of ProxySG appliances
in a customer's environment.

BCSI - Blue Coat Systems  $19.93

PLAY (very speculative - neutral/debit straddle):

BUY CALL  NOV-20.00  IYU-KD  OI=829  ASK=$1.20
BUY PUT   NOV-20.00  IYU-WD  OI=40   ASK=$1.30
INITIAL NET-DEBIT TARGET=$2.30-$2.40
INITIAL TARGET PROFIT=$0.80-$1.40





************************Advertisement*************************
We got trailing stops!
* Trade online with trailing stops at optionsXpress, at no extra cost 
* Trailing stops based on the option price or the stock price
* Also place Contingent, Stop Loss, and "One Cancels Other" orders
* Options as low as $1.25/contract, or $12.95 Minimum--NO Hidden Fees!
Go to http://www.optionsxpress.com/marketing.asp?source=oinvest33
Note: Options involve risk. Risk disclosure: 
http://www.optionsxpress.com/welcome_risk_index.htm
**************************************************************


*****************************************
PREMIUM-SELLING PLAYS: NAKED PUTS & CALLS
*****************************************

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

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SUMMARY OF CURRENT POSITIONS - AS OF 11/12/04
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

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

SIMG     NOV    12.50   12.10   15.60    0.40   5.95%   3.31%
NCRX     NOV    25.00   24.30   27.85    0.70   5.52%   2.88%
ANF      NOV    32.50   32.10   44.68    0.40   2.78%   1.25%
STTX     NOV    25.00   24.60   27.40    0.40   3.89%   1.63%
SNDA     NOV    22.50   21.85   38.69    0.65   7.78%   2.97%
IDBE     NOV    12.50   12.15   18.58    0.35   6.44%   2.88%
BVF      NOV    17.50   17.05   17.10    0.05   0.60%   2.64%
USG      NOV    17.50   16.90   31.59    0.60   6.84%   3.55%
SNDA     NOV    25.00   24.50   38.69    0.50   5.67%   2.04%
WEBX     NOV    20.00   19.60   25.06    0.40   5.75%   2.04%
ENER     NOV    15.00   14.40   17.95    0.60   8.11%   4.17%
DRIV     NOV    25.00   24.35   38.70    0.65   6.81%   2.67%
PLMD     NOV    30.00   29.55   34.75    0.45   3.33%   1.52%
CNCT     NOV    22.50   22.10   29.92    0.40   4.68%   1.81%
CCBI     NOV    22.50   21.90   23.86    0.60   5.51%   2.74%
EYET     NOV    35.00   34.45   42.71    0.55   5.17%   1.60%
USG      NOV    17.50   17.15   31.59    0.35   6.12%   2.04%
RIGL     NOV    22.50   21.85   28.10    0.65   8.14%   2.97%
MCD      NOV    27.50   27.15   30.50    0.35   2.99%   1.29%
FARO     NOV    20.00   19.60   24.26    0.40   5.67%   2.04%
NOVN     NOV    20.00   19.60   22.80    0.40   4.88%   2.04%
VRSN     NOV    20.00   19.65   30.26    0.35   4.40%   1.78%
SSNC     NOV    20.00   19.55   22.99    0.45   5.71%   2.30%
CKFR     NOV    30.00   29.40   34.55    0.60   4.91%   2.04%
OSTK     NOV    35.00   34.60   60.20    0.40   4.10%   1.16%
GBBK     NOV    30.00   29.40   31.24    0.60   5.01%   2.04%
KRON     NOV    45.00   44.50   49.44    0.50   3.10%   1.12%
MRVL     NOV    23.75   23.35   30.80    0.40   5.59%   1.71%
AGIX     NOV    20.00   19.70   35.05    0.30   4.50%   1.52%
AFCO     NOV    20.00   19.55   23.22    0.45   6.68%   2.30%
TSRA     NOV    25.00   24.70   33.24    0.30   4.18%   1.21%
SRDX     NOV    25.00   24.50   29.52    0.50   5.79%   2.04%
ELN      NOV    22.50   22.05   30.01    0.45   6.53%   2.04%
XMSR     NOV    30.00   29.45   33.88    0.55   5.48%   1.87%
ENDP     NOV    20.00   19.55   21.73    0.45   6.72%   2.30%
LNG      NOV    20.00   19.45   44.35    0.55   8.61%   2.83%
USG      NOV    20.00   19.50   31.59    0.50   8.45%   2.56%
EDS      NOV    20.00   19.65   21.87    0.35   5.49%   1.78%
MANT     NOV    17.50   17.05   23.73    0.45   9.65%   2.64%
NTMD     NOV    17.50   17.25   19.73    0.25   6.12%   1.45%
A        NOV    22.50   22.10   22.58    0.40   5.86%   1.81%
SCHN     NOV    26.60   26.15   34.05    0.45   5.81%   1.72%
CYTC     NOV    25.00   24.60   26.98    0.40   5.27%   1.63%
USG      NOV    20.00   19.70   31.59    0.30   6.65%   1.52%
TSRA     NOV    22.50   22.30   33.24    0.20   5.12%   0.90%
FARO     NOV    22.50   22.10   24.26    0.40   7.61%   1.81%
NTAP     NOV    22.50   22.15   25.30    0.35   6.52%   1.58%
VAR      NOV    37.50   37.15   40.67    0.35   3.87%   0.94%
DOX      NOV    22.50   22.25   26.81    0.25   5.00%   1.12%
ROST     NOV    25.00   24.70   27.99    0.30   4.78%   1.21%
JNPR     NOV    25.00   24.70   28.50    0.30   4.89%   1.21%
LNG      NOV    22.50   22.15   44.35    0.35   8.04%   1.58%
SFNT     NOV    30.00   29.60   35.59    0.40   6.06%   1.35%
ELN      NOV    22.50   22.25   30.01    0.25   5.96%   1.12%
YHOO     NOV    35.00   34.60   37.80    0.40   5.30%   1.16%
XMSR     NOV    30.00   29.65   33.88    0.35   5.65%   1.18%
SHPGY    NOV    27.50   27.15   29.51    0.35   5.67%   1.29%
MRVL     NOV    25.00   24.65   30.80    0.35   7.34%   1.42%
ANF      NOV    35.00   34.55   44.68    0.45   6.35%   1.30%
USG      NOV    25.00   24.70   31.59    0.30   8.75%   1.21%
DDS      NOV    22.50   22.00   25.00    0.50  14.05%   2.27%
RDEN     NOV    22.50   22.25   25.00    0.25   7.08%   1.12%
USPI     NOV    35.00   34.60   37.76    0.40   7.21%   1.16%
RIGL     NOV    22.50   22.20   28.10    0.30   9.75%   1.35%
ELN      NOV    22.50   22.15   30.01    0.35  13.38%   1.58%
VTIV     NOV    17.50   17.00   19.40    0.50  17.33%   2.94%
NTMD     NOV    20.00   19.60   19.73    0.13   5.49%   2.04%
MYGN     DEC    17.50   17.05   19.71    0.45   5.52%   2.64%
VTIV     DEC    17.50   17.05   19.40    0.45   5.46%   2.64%
IFLO     DEC    15.00   14.55   18.99    0.45   6.89%   3.09%
SEAC     DEC    17.50   16.95   19.51    0.55   7.02%   3.24%
ADLR     DEC    12.50   12.10   14.13    0.40   6.88%   3.31%
UTHR     DEC    25.00   24.05   36.97    0.95   9.03%   3.95%
RIGL     DEC    20.00   19.70   28.10    0.30   4.02%   1.52%
NFLD     DEC    15.00   14.45   16.60    0.55   8.24%   3.81%
  
Although currently profitable, positions in Palomar Medical
(NASDAQ:PMTI) and Energy Conversion Devices (NASDAQ:ENER); at
$17.50, as well as Ditech Communications (NASDAQ:DITC) and
Telular (NASDAQ:WRLS) have previously been closed to limit
potential losses.  Nitromed (NASDAQ:NTMD) is among the most
obvious "early-exit" candidate in the portfolio.


NAKED CALLS

Stock   Strike  Strike  Break  Current   Gain    Max    Simple
Symbol  Month   Price   Even    Price   (Loss)  Yield   Yield

BRCM     NOV    35.00   35.35   29.33    0.35   4.44%   0.99%
LLTC     NOV    40.00   40.60   38.05    0.60   3.74%   1.48%
SINA     NOV    35.00   35.35   37.50   (2.15)  0.00%   0.99% *
IVX      NOV    20.00   20.75   14.92    0.75   9.51%   3.61%
PLMO     NOV    40.00   40.45   36.30    0.45   5.62%   1.11%
SLXP     NOV    20.00   20.65   17.94    0.65   8.83%   3.15%
AOC      NOV    25.00   25.25   20.66    0.25   3.93%   0.99%
CVH      NOV    50.00   50.60   47.48    0.60   4.46%   1.19%
DSPG     NOV    22.50   22.85   22.70    0.15   2.67%   1.53%
RNR      NOV    50.00   50.65   49.65    0.65   3.51%   1.28%
GIVN     NOV    40.00   40.45   29.94    0.45   5.86%   1.11%
ARW      NOV    25.00   25.40   24.50    0.40   5.82%   1.57%
TACT     NOV    30.00   30.50   22.00    0.50  10.16%   1.64%
NVTL     NOV    25.00   25.20   20.16    0.20   6.99%   0.79%
ASKJ     NOV    30.00   30.35   25.65    0.35   8.26%   1.15%
LSS      NOV    30.00   30.20   28.77    0.20   6.51%   0.66%
DITC     NOV    25.00   25.25   17.46    0.25   8.20%   0.99%
DISH     NOV    32.50   32.90   32.45    0.40   6.30%   1.22%
PTP      NOV    30.00   30.60   29.68    0.60  13.28%   1.96%
LEND     NOV    40.00   40.55   39.44    0.55   9.31%   1.36%
UVN      NOV    30.00   30.25   29.93    0.25   5.54%   0.83%
MNST     DEC    30.00   30.60   28.51    0.60   4.91%   1.96%
FOSL     DEC    30.00   30.50   28.21    0.50   4.16%   1.64%
SLAB     DEC    35.00   35.55   31.38    0.55   4.84%   1.55%

Positions in Americredit (NYSE:ACF), Cabot (NYSE:CBT), Ii-Vi 
(NASDAQ:IIVI), Lam Research (NASDAQ:LRCX), Hyperion Solutions
(NASDAQ:HYSL), UCI Inc. (NASDAQ:UICI), U.S. Steel (NYSE:X),
and United Surgical (NASDAQ:USPI) have previously been closed
to limit potential losses.  Sina Corp (NASDAQ:SINA) is an exit
candidate after Thursday bullish activity.  A number of issues
remain on the "watch" list for the last week of the November
options expiration.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

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.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

NEW NAKED-PUT CANDIDATES

Stock  Last    Option    Option Last Open Cost  Days Simple  Max
Symbol Price   Series    Symbol Bid  Int. Basis Exp. Yield  Yield

RMBS   19.10  DEC 17.50  BNQ-XW 0.75  599 16.75  34   4.0%   9.9%
TSRA   33.24  DEC 25.00  TJQ-XE 0.65  163 24.35  34   2.4%   8.0%
ATI    21.26  DEC 20.00  ATI-XD 0.65   50 19.35  34   3.0%   7.4%
MRVL   30.80  DEC 25.00  UVM-XE 0.40 1495 24.60  34   1.5%   5.2%
ELN    30.01  DEC 22.50  ELN-XX 0.35 6299 22.15  34   1.4%   4.9%
AGIX   35.05  DEC 20.00  AUB-XD 0.40  946 19.60  34   1.8%   4.8%
VTS    23.14  DEC 20.00  VTS-XD 0.35    0 19.65  34   1.6%   4.8%
ERICY  33.35  DEC 30.00  RQC-XF 0.40 13K+ 29.60  34   1.2%   3.4%

Abbreviations:

LB-Last Bid price, OI-Open Interest, CB-Cost Basis (or break-even
point), DE-Days to Expiry, SY-Simple Yield (monthly basis without
margin), MY-Maximum Yield (monthly basis with margin), TS-Target
Shoot.
_________________________________________________________________

RMBS - Rambus  $19.10  *** Bottom Fishing! ***

Rambus (NASDAQ:RMBS) creates a range of chip-to-chip interface
technologies that enhance the performance and cost-effectiveness
of its customers' semiconductor and system products.  The firm's
interface solutions can be grouped into two major categories,
memory interfaces and logic interfaces.  Memory interfaces
provide an interface between memory chips and logic chips.
Logic interface solutions provide an interface between two
logic chips.  These advanced chip-to-chip interface solutions
increase the data transfer rate between semiconductor chips,
improving performance and reducing systems costs.

RMBS - Rambus  $19.10

DEC 17.50 BNQ-XW LB=0.75 OI=599 CB=16.75 DE=34 TY=4.0% MY=9.9%


_________________________________________________________________

TSRA - Tessera Technologies  $33.24  *** New All-Time High! ***

Tessera Technologies develops semiconductor-packaging technology
that meets the ongoing demand for miniaturization and increased
performance of electronic products.  It licenses its technology
to customers, enabling them to produce semiconductors that are
smaller and faster and incorporate more features.  These chips
are utilized in electronics products, including digital cameras,
MP3 players, personal computers, personal digital assistants,
video game consoles and wireless phones.  The firm's technology
enables multiple semiconductors to be stacked vertically in a
single three-dimensional, multi-chip package that occupies almost
the same circuit board area as a chip-scale package.

TSRA - Tessera Technologies  $33.24

DEC 25.00 TJQ-XE LB=0.65 OI=163 CB=24.35 DE=34 TY=2.4% MY=8.0%


_________________________________________________________________

ATI - Allegheny Technologies  $21.26  *** Steel Sector ***

Allegheny Technologies (NYSE:ATI) is a diversified producer of
specialty materials in three major business segments: flat-rolled
products, high-performance metals and industrial products.  The
company produces, converts and distributes stainless steel, and
specialized alloys, tungsten powder, tungsten carbide materials
and carbide cutting tools.  The company produces large grey and
ductile iron castings and carbon alloy steel forgings.

ATI - Allegheny Technologies  $21.26

DEC 20.00 ATI-XD LB=0.65 OI=50 CB=19.35 DE=34 TY=3.0% MY=7.4%


_________________________________________________________________

MRVL - Marvell Technology  $30.80  *** Earnings Speculation! ***

Marvell (NASDAQ:MRVL) designs, develops and markets integrated
circuits utilizing proprietary communications mixed-signal and
digital signal processing technology for communications-related
markets.  Marvell offers its customers a wide range of integrated
circuit solutions using proprietary communications mixed-signal
processing and digital signal processing technologies.  Marvell's
product groups include: storage products, consisting of a variety
of read channel, system-on-chip and preamplifier products; and 
broadband communications products, consisting of a variety of
transceiver products, switching products, internetworking
products and wireless LAN products.  Earnings are due 11/18/04.

MRVL - Marvell Technology  $30.80

DEC 25.00 UVM-XE LB=0.40 OI=1495 CB=24.60 DE=34 TY=1.5% MY=5.2%


_________________________________________________________________

ELN - Elan Corporation  $30.01  *** Drug Speculation! ***

Elan Corporation (NYSE:ELN) is an integrated biopharmaceutical
firm engaged in research and development in Alzheimer's disease,
Parkinson's disease, multiple sclerosis, pain management and
autoimmune diseases.  The company's objective is to discover and
develop products that will fulfill the unmet medical needs of
patients.  Elan conducts its global business, including research,
development, manufacturing and marketing, through subsidiaries
incorporated in Ireland, the United States, the United Kingdom
and other countries.

ELN - Elan Corporation  $30.01

DEC 22.50 ELN-XX LB=0.35 OI=6299 CB=22.15 DE=34 TY=1.4% MY=4.9%


_________________________________________________________________

AGIX - AtheroGenics  $35.05  *** Pure Premium-Selling! ***

AtheroGenics (NASDAQ:AGIX) is a research-based pharmaceutical
firm focused on the discovery, development and commercialization
of novel drugs used to treat chronic inflammatory diseases,
including heart disease (atherosclerosis), rheumatoid arthritis,
organ transplant rejection and asthma.  The company has developed
a vascular protectant technology platform to discover drugs to
treat these types of diseases.  Based on this platform, it has
four drug development programs in the clinic and is pursuing a
number of other preclinical programs.

AGIX - AtheroGenics  $35.05

DEC 20.00 AUB-XD LB=0.40 OI=946 CB=19.60 DE=34 TY=1.8% MY=4.8%


_________________________________________________________________

VTS - Veritas DGC  $23.14  *** Upgrade = Rally! ***

Veritas DGC (NYSE:VTS) provides integrated geophysical services
to the petroleum industry worldwide.  Its many customers include
national and independent oil and gas firms that use geophysical
technologies to identify new areas where subsurface conditions
are favorable for the production of hydrocarbons, determine the
size and structure of previously identified oil and gas fields
and optimize development and production of hydrocarbon reserves.

VTS - Veritas DGC  $23.14

DEC 20.00 VTS-XD LB=0.35 OI=0 CB=19.65 DE=34 TY=1.6% MY=4.8%


_________________________________________________________________

ERICY - LM Ericsson  $33.35  *** Target An Entry Point! ***

LM Ericsson (NASDAQ:ERICY) develops and supplies end-to-end
solutions to network operators for mobile and fixed-line
communications.  The firm offers mobile platform technology
for handset manufacturers and a wide variety of technology,
equipment and services for private-enterprise networks, as
well as for special applications, such as radar, cables and
mobile devices.

ERICY - LM Ericsson  $33.35

DEC 30.00 RQC-XF LB=0.40 OI=13008 CB=29.60 DE=34 TY=1.2% MY=3.4% TS



~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

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.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

APPX - American Pharma Partners  $29.53  *** Range-Bound? ***

American Pharmaceutical Partners (NASDAQ:APPX) is a specialty
drug company that develops, manufactures and markets injectable
pharmaceutical products, focusing on the oncology, anti-infective
and critical care markets.  The company is one of the largest
producers of injectables, with more than 130 generic products in
more than 350 dosages and formulations.

APPX - American Pharma Partners  $29.53

PLAY (sell naked call):

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

SELL CALL  DEC 35    AQO-LG    415    0.60  35.60   7.7%   1.7%


_________________________________________________________________

DIGE - Digene  $20.69  *** Downtrend Intact! ***

Digene (NASDAQ:DIGE) develops, manufactures and sells proprietary
gene-based testing systems for screening, monitoring and diagnosis
of human diseases.  Its primary focus is in women's cancers and
infectious diseases.  The firm has applied its proprietary Hybrid
Capture technology to develop a unique diagnostic test for human
papillomavirus, which is the primary cause of cervical cancer and
is found in greater than 99% of all cervical cancer cases.  In
addition to its HPV Test, the company's product portfolio includes
gene-based tests for detecting chlamydia, gonorrhea, hepatitis B
virus and cytomegalovirus.  
  
DIGE - Digene  $20.69

PLAY (sell naked call):

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

SELL CALL  DEC 25    QDG-LE    397    0.30  25.30   6.0%   1.2%


_________________________________________________________________

MDCO - The Medicines Company  $25.64  *** Mediocre Outlook ***

The Medicines Company (NASDAQ:MDCO) operates as a pharmaceutical
company selling and developing products for the treatment of 
hospital patients.  MDCO acquires, develops and commercializes
biopharmaceutical products that are in late stages of development
or have been approved for marketing.  The company began selling
Angiomax, its lead product, in U.S. hospitals in January 2001 as
an anticoagulant replacement for heparin.  MDCO is developing
Angiomax for additional potential hospital applications as a 
procedural anticoagulant and for use in the treatment of ischemic
heart disease.

MDCO - The Medicines Company  $25.64

PLAY (sell naked call):

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

SELL CALL  DEC 30    MQL-LF    350    0.35  30.35   5.0%   1.2%




************************Advertisement*************************
We got trailing stops!
* Trade online with trailing stops at optionsXpress, at no extra cost 
* Trailing stops based on the option price or the stock price
* Also place Contingent, Stop Loss, and "One Cancels Other" orders
* Options as low as $1.25/contract, or $12.95 Minimum--NO Hidden Fees!
Go to http://www.optionsxpress.com/marketing.asp?source=oinvest33
Note: Options involve risk. Risk disclosure: 
http://www.optionsxpress.com/welcome_risk_index.htm
**************************************************************


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

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


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

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

Contact Support




DISCLAIMER

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

Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report and website should be independently verified.

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

Option Investor Inc
PO Box 630350
Littleton, CO 80163

E-Mail Format Newsletter Archives