Posts Tagged ‘DELL’

Apollo Group Calls In Play As Shares Rally

 

Today’s tickers: APOL, DELL & ORCL

APOL - Apollo Group, Inc. – Shares in for-profit education provider, Apollo Group, are up the most in the S&P 500 Index today after the operator of the University of Phoenix posted better-than-expected second-quarter earnings and sales prior to the opening bell this morning. Apollo shares increased as much as 15% during the first half of the trading session to touch an intraday high of $19.63, the highest level since mid-February. Trading traffic in APOL calls suggest some traders are positioning for the price of the underlying to continue higher in the near term. Weekly call volume is greatest at the Mar. 28 ’13 $20 strike, where upwards of 1,300 contracts changed hands against open interest of 103 lots. It looks like most of the volume was purchased at an average premium of $0.15 apiece, thus positioning call buyers to profit should Apollo’s shares rally another 9.5% over the current price of $18.41 to settle above $20.15 by the end of the shortened trading week. Bullish traders also picked up around 600 calls at the April $20 strike for an average premium of $0.40 each. Shares in Apollo are off their highs of the session, trading up 8.0% at $18.41 as of 11:50 a.m. ET, but are down roughly 60% since this time last year.

DELL - Dell, Inc. – Weekly puts on PC maker, Dell, changed hands on Monday morning amid a 3.0% rally in the price of the stock to $14.56 on news that Blackstone Group LP and Carl Icahn submitted proposals to purchase the company. Put buyers may be locking in gains on the stock’s more than 40% run since the start of the year, or positioning for shares in Dell to falter during the next few trading sessions. The most actively traded weekly options on Dell are the Mar. 28 ’13 $14.5 strike puts, with volume topping 3,500 lots versus open interest of 610 contracts by midday in New York. It looks like most of the put options…
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Wednesday Worries – AAPL Makes $76,103 While You Read This

$76,103 – That's not sales, that's profit!  

Every minute of every day, AAPL is making $76,103 (at $40Bn a year) on the sale of $316,120 worth of products.  No company on Earth comes close to that kind of metric and, overall, the stock's performance clearly indicates that but, if you listen to the MSM, you would think AAPL is finished.

We had a nice, in-depth discussion about AAPL in Member Chat this morning and we not only concluded it's still a buy but we came up with a lovely spread that has the potential to turn $3,000 into $45,000 between now and Jan 2015 if AAPL simply holds $600 – needless to say we're very proud of that as it's always nice to have a trade or two in your portfolio that returns 1,500% and we rarely get a chance to do them with a blue-chip stock like AAPL.  

Note in the above chart, that AAPL is still a relative outperformer this year – shown priced against HPQ, DELL, INTC, IBM, CAT and ISRG – all good companies that have simply failed to keep up.  We also like HPQ at this level, now $14.30 as their REDUCED guidance has them earning $3.62 per share next year after earning $4.05 this year and that's still 25% back on your money, which sure beats TBills and we're not even counting the $18Bn in cash they have on hand, which is quite a lot when you consider that their entire market cap is now just $28Bn.  Small wonder HPQ spent $9Bn buying back their own stock last year, when it was priced 100% higher. 

HPQ is a pretty good candidate for a buy/write, where we Buy the stock for $14.30 and Write 2014 $15 puts and calls (sell short) for $5.50 and that nets $8.80 on the trade and, if HPQ is below $15 in Jan 2014, then another round of shares will be put to you at $15 for an average entry on 2x of $11.90, which is 17% below the current price and, if HPQ is over $15 in 16 months, then you get called away at $15 for a $6.20 profit on cash (75%).  Buy/writes are our favorite tools for making long-term entries – see "How to Buy a Stock for a 15-20% Discount."

As we mentioned INTC in the above chart, let's look at a similar…
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Thursday Thrust – Enough to Break on Through?

 

I've listened to preachers

I've listened to fools
I've watched all the dropouts
Who make their own rules
One person conditioned to rule and control
The media sells it and you live the role
Mental wounds still screaming
Driving me insane
I'm going off the rails on a crazy train – Ozzy

Wheeeee, that was fun!  

SPY 5 MINUTEWe called for a "Whipsaw Wednesday" and it doesn't come much more whipsawed that that.  Fortunately we stuck with the plan from my morning post to take the money and run on our short plays and we even pulled the hedges off our $25,000 Portfolio, leaving it 100% bullish at 11:11 in Member Chat.

That left us a little nervous for the next hour but, of course, we had a plan for that too and, at 12:27, I put up a chart of the our indexes over the last 5 days saying: "Note our lows of last Friday – Those are the lines we need to give up at if we fail them!"

That's a very important point about aggressively trading – it's OK to pick a bottom and flip bullish, but ONLY IF YOUR BOTTOM HOLDS!  The biggest problem traders have is they guess a bottom (1,300 on the S&P was ours) but then, when their premise fails – they FAIL to give up on the position.  This is much like saying in the morning that you don't think it's going to rain – then having breakfast and seeing it pouring with rain outside – and refusing to take an umbrella because you didn't think it was going to rain (see "The Microwave Oven Theory of Behavior" for more on this subject).  

Here was the chart we looked at at 12:27 in chat:  

Things were not looking good, were they?  Remember, we had gone bullish on that first pause and failed to hold that line so the first thing we had to do was make a new plan — just in case.  If you don't know EXACTLY what you are going to do "just in case," you
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Options Activity Suggests Tough Week For Halliburton, Clear Skies For JetBlue

Today’s tickers: HAL, JBLU, DELL & HL

HAL - Halliburton Co. – Shares in the Houston, Texas-based oilfield services provider dropped as much as 5.8% to $34.86 today on reports BP is accusing a unit of the Halliburton Co. of destroying evidence that could have shown the company is also at fault for the deadly explosion in the Gulf of Mexico last year. Options traders expecting the stock to remain under pressure this week placed short-term bearish bets on the stock. Weekly puts that expire at the end of the trading week attracted heavier-than-usual volume, with the Dec. ’09 $35 strike put trading more than 4,400 times against open interest of just 444 contracts. It looks like investor purchased the majority of the $35 strike weekly puts for an average premium of $0.53 each. In-the-money put buyers at this strike stand prepared to profit should the price of the underlying fall another 1.1% to breach the average breakeven point on the downside at $34.47 at expiration. Bears picked up put options at the lower Dec. ’09 $ 34 strike for an average premium of $0.31 each, as well. Approximately 2,700 puts have changed hands at the $34 strike as of 12:30 PM ET. Options implied volatility on Halliburton is up 5.7% at 50.55% in early-afternoon trade.

JBLU - JetBlue Airways Corp. – Investors initiating near-term bullish positions in JetBlue Airways this morning appear to have shown up relatively late to the party, however, late could be better than never as long as the price of the underlying stock continues to rise in the next couple of weeks. Shares in JetBlue Airways Corp. are up 1.7% today to stand at $4.78 as of 11:20 AM ET. The stock has rallied roughly 30.0% since AMR Corp. filed for bankruptcy on November 29. Some traders jumped into JBLU…
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Bears Paw At Calls And Puts On Cisco Systems

Today’s tickers: CSCO, DELL, JCI & RRR

CSCO - Cisco Systems, Inc. – Shares in the maker of routers and switches were on a tear this week, rallying as much as 9.3% over Monday’s open to a high of $16.76 on Thursday. The stock had been in positive territory to start the final trading session of the week, but have since slipped 0.30% to stand at $16.70 as of 11:50 am in New York. Activity in put options set to expire one week from today suggest some traders are positioned to see Cisco’s shares continue to lose ground in the near term. Meanwhile, longer-dated calls indicate investors expect shares to run up against resistance at the $17.00 and $18.00 levels through April 2012 expiration.

Investors predicting a near-term pullback in the price of the underlying purchased roughly 2,600 puts at the Oct. ’14 $16 strike for an average premium of $0.10 per contract. Put buyers profit at expiration next week should shares in Cisco Systems drop 4.8% from the current price of $16.70 to breach the effective breakeven point on the downside at $15.90. Looking out to the April 2012 contract, it appears traders are selling large blocks of call options. Investors may be selling the calls outright, or writing the contracts against long stock positions. The heaviest volume was observed at the April 2012 $18 strike, where more than 10,000 calls were sold for an average premium of $1.25 each. It looks like the largest single block sold 7,481 times. The investor responsible for the sizeable position keeps the $1.25 premium received on the trade as long as shares in Cisco fail to exceed $18.00 at expiration in April. Cisco’s shares last traded above $18.00 back in April 2011. Options implied volatility on the stock rose 14.7% to…
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Options Player Plants Short Straddle on Health Management Associates

Today’s tickers: HMA, DELL, AWI & DISCA

HMA - Health Management Associates, Inc. – A sizable short straddle on the provider of health care services yields maximum benefits to the seller at expiration if the price of the underlying stock remains fairly stagnant in the next couple of months. Shares in Health Management Associates fell 1.75% this afternoon to $10.69 just before 12:30pm in New York. Options volume in the amount of 10,000 calls and 10,000 puts employed by the straddle-strategist is huge compared to overall previously existing open interest on HMA of 12,857 contracts. It looks like the trader sold the straddle outright, receiving $0.45 per contract on the sale of 10,000 calls at the August $11 strike, and taking in $0.90 per contract on the sale of 10,000 puts at the same strike. Gross premium pocketed on the trade amounts to $1.35 per contract, which the trader keeps in full if shares in HMA settle at $11.00 at expiration day in August. The investor may retain some portion of the $1.35 per contract as long as shares remain range-bound within the upper breakeven price of $12.35, and the lower breakeven point at $9.65, through expiration. Shares in the health care provider have traded above $9.65 since the end of February, and have not topped $12.35 since 2007. Of course, the options player need not hold the position through expiration to make the transaction worth his while. The effects of time erosion on options premium as well as lower volatility could be beneficial for the investor, and may allow him to buy back the straddle at an advantageous price at some point ahead of August expiration. Health Management Associates is scheduled to report second-quarter earnings after the closing bell on July 26, 2011.

DELL - Dell, Inc. – Shares in…
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Bullish Player Takes Profits, Injects Fresh Optimism in Sanofi-Aventis Options

Today’s tickers: SNY, DELL, HTZ & GT

SNY - Sanofi-Aventis – The French drug manufacturer popped up on our ‘hot by options volume’ market scanner this morning after one strategist extended bullish sentiment on the stock. Shares in Sanofi-Aventis rallied earlier in the session, but currently stand 0.35% lower on the day at $39.55 as of 11:30am in New York. The vaccines division of the pharmaceutical company, Sanofi Pasteur, said today it has received approval from the U.S. Food & Drug Administration (FDA) for its intradermal microinjection delivery system of its influenza vaccine, Fluzone. The vaccine was previously approved for intramuscular administration, but Sanofi said it plans to have the Fluzone Intradermal vaccine available to U.S. healthcare providers in time for the 2011-2012 influenza season. The bullish options trader responsible for nearly all of the day’s volume appears to be taking profits off the table on a previously established long call position. It looks like the investor originally purchased 2,000 calls at the May $37 strike for an average premium of $1.025 back on April 14 when shares in SNY were hovering around $37.54. Since the calls were purchased, shares in Sanofi rallied as much as 8.6% to touch a new 52-week high of $40.75 last Wednesday. Although shares are currently off last week’s high, the bullish trader was still able to rake in substantial profits on the long calls stance, selling all 2,000 of the May $37 strike calls this morning at a premium of $2.45 apiece. Net profits on the sale amount to $1.425 per contract. Next, the trader extended bullish sentiment on the drug maker, buying 2,000 fresh calls out at the June $40 strike for a premium of $0.40 per contract. The investor profits on the new batch of call options if shares in SNY increase 2.15% over the current price of $39.55 to surpass the effective breakeven point to the upside at $40.40 by expiration in June.…
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Dell Options In Demand

Today’s tickers: DELL, CAG, GPS & XLNX

DELL - Dell, Inc. – Strategists populating Dell options today are sending mixed signals on the PC maker ahead of the company’s first-quarter earnings report on May 17. Call buyers in the June contract appear to be gearing up for a rally in the price of the underlying shares, while ratio put spreaders are taking a more cautious stance on the stock. Shares in Dell are currently up 0.25% to stand at $15.84 as of 12:15pm. Options traders exchanged more than 9,800 calls at the June $16 strike on open interest of 3,774 contracts. It looks like nearly all of the contracts were purchased for an average premium of $0.63 a-pop. Investors long the calls profit if DELL’s shares rally 5.0% over the current price of $15.84 to exceed the average breakeven price of $16.63 by expiration day next month. Meanwhile, one or more put players initiated ratio spreads. Approximately 3,500 in-the-money puts at the June $16 strike were purchased for an average premium of $0.81 each, while 7,000 puts at the lower June $15 strike sold for an average premium of $0.37 apiece. Investors employing the spreads paid a net premium of $0.07 per contract, on average. The sale of twice as many of the lower-strike put options substantially reduced the cost of positioning for a pullback in Dell’s shares through expiration day next month. Traders may be using the put-play to hedge a long position in the stock, or may be positioning for shares to decline rather than rally as call buyers’ actions suggest. The parameters of the put spread, for outright bearish players, indicate maximum potential profits of $0.93 per contract if shares in DELL settle at $15.00 at expiration. But, if the position turns out to be not quite bearish enough, investors start losing money beneath a breakeven share price of $14.07.…
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Big Bearish Bet on Dell Pops Up Ahead of Earnings After the Close

Today’s tickers: DELL, AKAM, NWL & EEM

DELL - Dell, Inc. – Bearish sentiment on the personal computer maker is building in options land this afternoon ahead of Dell’s fourth-quarter earnings report after the final bell. Shares in the tech company are currently down 1.5% to stand at $13.88 just after 12:30pm in New York. One big options strategist is well-positioned to benefit from limited downside movement in the price of the underlying shares through March expiration. The investor purchased a massive put spread, picking up 25,000 lots at the March $13 strike for a premium of $0.24 each, and selling the same number of puts at the lower March $12 strike at a premium of $0.08 apiece. Net premium paid to initiate the pessimistic play amounts to $0.16 per contract. The trader starts to make money in the event that Dell’s shares drop 7.5% from the current price of $13.88 to breach the effective breakeven point on the spread at $12.84 ahead of expiration day. Maximum potential profits of $0.84 per contract are available to the put player should shares in the name plunge 13.5% lower to trade below $12.00 in the time remaining to March expiration. Dell, Inc. options are popular ahead of earnings, with more than 137,000 contracts having changed hands in early-afternoon trade. Options implied volatility is up slightly by 3.0% to stand at 36.29% as of 12:40pm.

AKAM - Akamai Technologies, Inc. – A three-legged bullish options combination play on the provider of cloud optimization services caught our eye this morning. The strategist responsible for the transaction is positioning for Akamai’s shares to continue to rise ahead of March expiration. Shares in AKAM are currently up 1.2% at $42.60 just before 11:30am in New York. The stock took a big hit last week, falling as much…
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Dell Call Options Active in Afternoon Trading

Today’s tickers: DELL, AGU, EEM, GERN, SPY, IP, SFD & CHS

DELL - Dell, Inc. – Speculation that Michael Dell, Chairman and CEO of Dell, Inc., may buy the computer company or pay a special dividend lifted shares of the world’s third-largest PC maker this afternoon and spurred demand for out-of-the-money call options. Dell’s shares rallied nearly 3.00% today to touch an intraday high of $14.14, but are currently up 1.50% at $13.94 as of 3:05 p.m. Options traders honed in on October $14 strike calls, exchanging more than 23,100 of those contracts by 3:00 p.m., versus previously existing open interest of 10,783 calls at that strike. It looks like roughly 11,800 of those call options were purchased at an average premium of $0.21 a-pop. Call buyers make money if Dell’s shares exceed the average breakeven price of $14.21 by October expiration on Friday. Other optimistic signaling on the stock involved the sale of some 2,100 in-the-money puts at the October $14 strike where investors received an average premium of $0.34 per contract. Options implied volatility is up 15.2% to stand at 41.52% with less than one hour remaining before the final bell.

AGU - Agrium, Inc. – Shares of Canada’s second-largest fertilizer producer rallied as much as 3.2% today to reign in an intraday high of $85.66 after corn futures jumped to a near two-year high. Agrium was upgraded to ‘sector outperformer’ from ‘sector performer’ at CIBC World Markets where analysts upped their target share price on the company to $100.00 from $70.00. One options trader was prepared for the bullish move in the Agrium’s shares and opted to book profits, as well as extend optimism on the stock in the November contract. It looks like the investor purchased 10,000 calls at the November $85 strike for an average premium…
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Phil's Favorites

Two predictions for the wild week ahead

 

Two predictions for the wild week ahead

Courtesy of 

?

Two predictions for the coming week, which I think will be a particularly wild one –

First, the United States Ambassador to the European Union, Gordon Sondland, will walk into the House hearing room on Wednesday and tell the truth. Sondland is not part of the Trumpworld Mafia or a self-styled tough guy like Rudy, Michael Cohen or Roger Stone. He’s not a trickster or a fixer or a lifel...



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Kimble Charting Solutions

New York Stock Exchange Double Topping or Sending A Strong Bullish Message?

Courtesy of Chris Kimble

A very broad index is testing last year’s highs, as monthly momentum is creating lower highs? Which indicator is more important, price or momentum?

This chart looks at the New York Stock Exchange Index (NYSE) on a monthly basis over the past 15-years.

The index peaked in January of 2018, as momentum was the highest since the peak in 2007.

The rally off the lows around Christmas last year, has the index testing the highs of January 2018. While the rally has taken place over the past 12-months, lofty momentum has created a series of lower highs.

Can you believe th...



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Zero Hedge

Dow Dives Into Red, Home Depot Hammered

Courtesy of ZeroHedge View original post here.

Another overnight ramp evaporates...

As Home Depot weighs heavy on The Dow...

But the consumer is strong, right?

Treasury yields are tumbling too...

Source: Bloomberg

...

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Insider Scoop

10 Biggest Price Target Changes For Tuesday

Courtesy of Benzinga

  • UBS raised AbbVie Inc (NYSE: ABBV) price target from $79 to $96. AbbVie shares closed at $88.73 on Monday.
  • JP Morgan lowered the price target for Intelsat SA (NYSE: I) from $22 to $9. Intelsat shares closed at $8.03 on Monday.
  • DA Davidson boosted the price target on Okta Inc (NASDAQ: OKTA) from $131 to $135. Okta closed at $121.15 on Monday.
  • Stifel lifted the price target for Leggett & Platt, Inc. (NYSE: ...


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Lee's Free Thinking

NY Department of Welfare Announces Increased Subsidies for Primary Dealers, Thank God!

 

NY Department of Welfare Announces Increased Subsidies for Primary Dealers, Thank God!

Courtesy of , Wall Street Examiner

Here’s today’s press release (11/14/19) from the NY Fed verbatim. They’ve announced that they will be making special holiday welfare payments to the Primary Dealers this Christmas season. I have highlighted the relevant text.

The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has released the schedule of repurchase agreement (repo)...



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The Technical Traders

VIX Warns Of Imminent Market Correction

Courtesy of Technical Traders

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX. These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance. This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. 

Vix Value Drops Before Monthly Expiration

When the VIX falls to levels below 12~13, this typically v...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

Reminder: We are available to chat with Members, comments are found below each post.

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Chart School

Dow Jones cycle update and are we there yet?

Courtesy of Read the Ticker

Today the Dow and the SP500 are making new all time highs. However all long and strong bull markets end on a new all time high. Today no one knows how many new all time highs are to go, maybe 1 or 100+ more to go, who knows! So are we there yet?

readtheticker.com combine market tools from Richard Wyckoff, Jim Hurst and William Gann to understand and forecast price action. In concept terms (in order), demand and supply, market cycles, and time to price analysis. 

Cycle are excellent to understand the wider picture, after all markets do not move in a straight line and bear markets do follow bull markets. 



CHART 1: The Dow Jones Industrial average with the 900 period cycle.

A) Red Cycle:...

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Digital Currencies

Is Bitcoin a Macro Asset?

 

Is Bitcoin a Macro Asset?

Courtesy of 

As part of Coindesk’s popup podcast series centered around today’s Invest conference, I answered a few questions for Nolan Bauerly about Bitcoin from a wealth management perspective. I decided in December of 2017 that investing directly into crypto currencies was unnecessary and not a good use of a portfolio’s allocation slots. I remain in this posture today but I am openminded about how this may change in the future.

You can listen to this short exchange below:

...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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