Turn Out The Lights, The Party’s Over!

“Turn
out the lights, the party’s over.”


Isn’t that what Dandy Don Meredith, ABC Monday night football color man and
“Ring of Fame” member of the Dallas Cowboys used to say when the outcome was
no longer in doubt? Well, Dandy Don would have been singing for the past few
months if he were a market commentator instead of a football analyst. I’m sure
many of you can commiserate with me when I say I’d much rather be watching a
football game, ANY football game than this cheerless, gloomy, depressing
display. Hell, I’d even watch an XFL game than today’s market activity. For
all of you that share that view and could use some perking up, I have included a
shot of a member of the Dallas Cowboys cheerleading squad rather than a picture
of Dandy Don.

My friend Dylan Ratigan of Bloomberg
Television asked if we might chat about some strategies that investors could
use to take advantage of the escalating option premiums. I said I’d love to,
so either tune in USA networks cable in your area at 6:40 AM CT (tomorrow
morning), or check us out on the Bloomberg.

One example I will cite is a simple buy-write in Verisign
(
VRSN |
Quote |
Chart |
News |
PowerRating)
. We will examine buying VRSN for $40, selling the
October 40 call for $5.20 (13% downside protection from call sale). We will
discuss a few other strategies and post the complete report tomorrow on www.1010WallStreet.com
.

Please don’t forget to tune in to www.webfn.com
at 4:30 CT to see DoctorJ & the Traders.
I’m sure our popular panelists Goran Yordanoff, Benji Schwartz, Tom Haugh and
Larry Parkhill will have lots to say about this week’s market action.