More Wrong Numbers

• October 3, 2000
• Dave Landry

Dynergy
(
DYN |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List, may  provide an opportunity for
covered calls. You can buy the stock for 55 3/4 and sell the November 60 calls
for 3 3/8. This represents
approximately a 13% return (more than 150% annualized, based
on 45 days until expiration) should the stock be called
away.

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Although
some individual issues got whacked on Tuesday, major drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating)
remain strong.  Look for buying opportunities in calls and call spreads here.

On the
short side, telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating) remains weak. Continue to look for buying opportunities in puts and put
spreads here.

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Looking Ahead

Biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating)
continues to slide after recently stalling out near short-term double tops and
longer-term triple tops. 

Internet, basis The Street.com
Internet Index
(
$DOT.X |
Quote |
Chart |
News |
PowerRating), took out a triple bottom on Tuesday.

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Best
of luck with your trading on Wednesday!

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