Major Drugs Still Bullish

• October 31, 2000
• Dave Landry

OSIP Pharmaceuticals
(
OSIP |
Quote |
Chart |
News |
PowerRating), mentioned in my Stock Outlook and on the  Pullbacks
Off Highs List, may  provide an opportunity for
covered calls. You can buy the stock for 72 and sell the December 80 calls
for 5 1/8. This represents
approximately an 18% return (more than 150% annualized, based
on 44 days until expiration) should the stock be called
away.

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Major drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating) and healthcare
(
$HCX.X |
Quote |
Chart |
News |
PowerRating) held up well in spite of all the competition for funds on
Tuesday. Continue to look poised for buying opportunities in
calls and call spreads here.

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Looking
Ahead

Oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) may setup on the
short side over the next few days.

Best
of luck with your trading on Wednesday!

P.S. Reminder:
Protective stops on every trade!