Still Like Drugs

• November 1, 2000
• Dave Landry

PeopleSoft
(
PSFT |
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 44 1/2 and sell the December 50 calls
for 2 9/16. This represents
approximately an 18% return (more than 150% annualized, based
on 43 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), mentioned recently, began to rally out of pullbacks on
Wednesday. Continue to look for buying opportunities in
calls and call spreads here.

face=”Arial, Helvetica”>src=”https://tradingmarkets.com/media/images/Landry/drg110100.gif” width=”470″ height=”320″>

Although
the semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) are forming a “mini” head-and-shoulders
bottom, it still looks like the path of least resistance is down. Look for
buying opportunities in puts and put spreads here.

Best of
luck with your trading on Thursday!

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