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The Dow appears to have stalled at 10550 once again and with Greenspan likely to eject Fisher's comments from the game the outlook will revert to a 4% Fed rate and more hikes to come. With weakness growing in the economy I can't help but believe that we will eventually get a summer swoon.

I added a DJX put position just in case. This is cheap thrills in a calendar period where no real opportunities exist.

I also raised the entry point on EBAY just in case we do get that drop.

I am watching the homebuilders and the HMO stocks like WLP and AET for signs of weakness. They are breaking out again and I would love to see one more dip into summer for some new entries. The homebuilders are on fire as well with rates falling through the floor. Once Greenspan reintroduces the fear factor into rates I am hoping to buy those on a pullback as well.

If you see any obvious LEAP plays that could work through the summer please email them to Jim at Option Investor and I will post them for everyone to see.

Dropped Entries

New Watch List Entries
Dow Puts

Current Watch List

DJX - $104.61 Dow Puts

EBAY - $38.30 Ebay Inc

CCU - $29.73 Clear Channel Communications


DJX - $104.61 Dow Puts

** Breakdown Target $104.00 **
** Breakout Target $105.50 **

Breakdown Target
BUY Aug $103 PUT DJV-TY currently $1.55

Breakout Target
Buy Aug $104 PUT DJV-TZ currently $1.90

No insurance call - Stop at $106.50


CCU - $29.72 Clear Channel Communications

** Breakdown Target $28.00 **
** Breakout Target $32.50 **

Radio is changing with the advent of satellite and conventional AM/FM is fighting an uphill battle.

Breakdown Target
BUY 2007 $25 LEAP PUT VYU-ME currently $1.80

Breakout Target
Buy 2007 $30 LEAP PUT VYU-MF currently $3.70

No insurance call - Stop at $35.00


EBAY - $37.79 EBAY Inc

** Breakdown Target $34.00 **
** Breakout Target - None **

EBAY has finally started finding a bid and $31 appears to be a bottom. If we get another dip over the summer I would be happy with an entry at $34. It appears investors have forgotten that Meg Wittman considered leaving to go to Disney.

Breakdown Target
BUY 2007 $35 LEAP CALL OYI-AU currently $6.60

Insurance put - OCT $30 PUT XBA-VF currently $1.40

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