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2 New Earnings Plays

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The market looks to earnings while a dark under current of higher crude prices lurks in the shadows. We are looking toward those "earnings" reports to make our OW put writes for today. The market hates uncertainty, but good earnings usually work out any problems themselves.

Let's look at two plays for 7-12-05 to join our other 4 current August plays. Please note that both of these trades will report earnings before their expiration. Why do earnings plays? Well, you get extra premium that pays you for the extra risk. We think both of these have good chances to report postiive earnings, so we will take that extra premium as our reward for taking on the exta risk.

ADLR 10.74
ADOLOR CORP (NASDAQ: ADLR)
1. SELL ADOLOR CORP AUG 7:50 PUT ( UAH-TU )
TARGET PRICE NET CREDIT $0.50
POTENTIAL PROFIT (5 X)= $250
Initial Margin $1,324 5 contracts
Return on Investment 18.88%
Cost Basis in Stock= $7.00
Days to Expiration = 31

ADBL $19.43
AUDIBLE INC NEW (NASDAQ: ADBL)
2. SELL AUDIBLE INC NEW AUG 17.50 PUT (OBQ-TW)
NET CREDIT $0.85
TARGET PRICE NET CREDIT $0.85
POTENTIAL PROFIT (5 X)= $425
Initial Margin $2,368 5 contracts
Return on Investment 17.95%
Cost Basis in Stock= $16.65
Days to Expiration = 31


We will be monitoring positions for any necessary adjustments
And informing you of such.

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