Strong Drugs

  • September 28, 2000
  • Dave Landry

Allergan
(
AGN |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List, may provide an opportunity for
covered calls. You can buy the stock for 84 7/8 and sell the November 90 calls
for 3 1/4. This represents
approximately a 10% return (more than 70% annualized, based
on 50 days until expiration) should the stock be called
away.

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Major drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating), mentioned
Wednesday night, still look like they have potential, especially in light of the
Apple news. Look for buying opportunities in calls and call spreads
here.

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width=”470″ height=”320″>

Broker/dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) appears to be finding support around the area of its last
breakout. Look for buying opportunities in calls and call spreads here.

Looking
Ahead,

As mentioned recently, there may be shorting
opportunities in technology if it can continue its relief rally over the next few days.

Best
of luck with your trading on Friday!

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