Posts Tagged ‘HAL’

Deja Thursday – The Coalition of the Willing is Back in Business!

We're back in business baby!  

It's been 12 years since GW Bush first assembled the "Coalition of the Willing" in November of 2002 (a full year after we were attacked by 15 Saudi hijackers), to go after Osama Bin Laden, (who was hiding in Afghanistan) by attacking Iraq.  Interestingly, Bush only stole that phrase from Bill Clinton (what, you thought Bush had an original thought?), who first mentioned it in a 1994 interview

Now, in 2014, we're ready to go back to war – in Iraq (did we ever really leave?) – with another coalition of the willing staring most of the same players but this time, we have Germany on our side – so you know we're serious.  According to the WSJ, they've already spotted a training camp for Syrian rebels in Saudi Arabia and – oops, wait – that's being run by us – WE'RE arming and training Syrian rebels – what can go wrong?

ShiftingGround

Well, as they say, politics make strange Bedouin fellows and I guess we'll ignore the fact that the current ISIS rebels were the same people we armed and trained to fight Saddam 12 years ago.  While we're training and arming Syrians in Saudi Arabia, we'll be bombing their country as well.  Again, this is pretty much how we handled Iraq but hey – at least we're consistent!  

At PSW, we're consistent too.  While we love war as much as any other red-blooded Americans, we question this one as well – even when there's a Democrat in charge.  It's funny because, just the other day, I suggested that Congress, rather than rejecting the call for $40M to help combat Eblola (as they just did), could have scraped together that money by simply firing one less $1M Tomahawk missile each week.  I was wrong, and I apologize – it turns out they cost $1.41M each.  

This is, of course, great news for RTN, whose stock has already run up 13% in the past 30 days as the fear of peace flushes out of the stock price.  If you want to
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Expedia Options Volume Jumps As Shares Tumble

Today’s tickers: EXPE, KO & HAL

EXPE - Expedia, Inc. – Shares in online travel company, Expedia, Inc., are getting pummeled today, down as much as 27% during morning trading to a new 52-week low of $47.55, after the company yesterday reported second-quarter earnings and revenue that missed analyst estimates. Some options traders are bracing for further near-term declines in the price of the underlying shares, snapping up roughly 1,000 Aug $45 strike puts for an average premium of $0.64 apiece. The contracts make money at expiration next month if shares in Expedia drop 6.7% from today’s low of $47.55 to breach the average breakeven point on the downside at $44.36. The Sep $45 strike put options are also attracting fresh interest, with around 2,500 contracts in play versus open interest of just 50 contracts. It looks like most of the Sep $45 puts were purchased for an average premium of $1.20 apiece this morning. Meanwhile, trading traffic in the Jan 2014 calls suggests one trader may be positioning for shares in the name to rebound significantly by expiration next year. The strategist appears to have purchased a 1,500-lot Jan 2014 $54.48/$64.48 bull call spread at a net premium of $1.75 per contract. The spread starts making money if shares in Expedia rally 18% off today’s low to exceed the effective breakeven price of $56.23, with maximum potential profits of $8.25 per contract available on the position given a more than 35% upside move in the price of the underlying to $64.48 by expiration next year.

KO - Coca-Cola Co. – Activity in Coca-Cola Co. weekly put options on Friday morning indicates some traders are positioning for shares in the world’s largest beverage maker to extend declines during the next five trading sessions. Shares in KO are off 1.7% today at $40.15…
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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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All Eyes On IMAX Corp. Calls As Shares Soar

Today’s tickers: IMAX, AMZN, HAL & MU

IMAX - IMAX Corp. – Call options on the entertainment technology company are in demand this morning after shares in IMAX jumped 9.1% roughly 40 minutes into the trading session to an intraday high of $17.63. The sizable move in the price of the underlying coupled with increased trading in IMAX options lifted the stock’s reading of implied volatility 10.3% to 82.95% by 11:05 am ET. The sharp rise in shares and volatility are a boon to investors who appear to have purchased September contract calls on the stock on Friday. Open interest in the Sept. $20 strike call suggest some 1,400 contracts were picked up at an average premium of $0.25 apiece during the final trading session last week. Investors long the calls at $0.25 per contract now hold contracts that have more than doubled in value over the weekend. Traders eyeing the Sept. $20 strike calls this morning exchanged more than 3,800 of the options, exceeding the 2,116 previously existing positions at that strike. It looks like investors purchased around 2,700 of the calls this morning for an average premium of $0.40 each. Call buyers profit if shares in IMAX Corp. jump 15.7% over today’s high of $17.63 to surpass the average breakeven price of $20.40 at expiration in a couple of weeks. The September $20 strike call currently commands an asking price of $0.75 per contract as of 11:15 am in New York.

AMZN - Amazon.com, Inc. – Shares in online retail giant Amazon.com gained 2.8% to $204.76 this morning, but call buyers in the front month are positioning for far more substantial gains in the price of the underlying come September expiration. Call options on AMZN are trading roughly 1.7 times for each single put option in action today, with…
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Options Strategist Sees Halliburton Rebound On The Horizon

Today’s tickers: HAL, AOL, CQB & XRT

HAL - Halliburton Co. – Options activity on Halliburton suggests one strategist seized the opportunity to take a bullish stance on the provider of oil equipment and services this morning on the heels of a 27.5% dip in the price of the underlying during the past three weeks. Shares in Houston, TX-based Halliburton recovered 4.8% of their value thus far in the session to trade at $44.46 as of 11:45 am ET. It looks like the options player is positioned for limited, albeit potentially substantial, bullish movement in the price of the underlying through September expiration. The investor initiated a ratio call spread, buying 5,000 calls at the September $50 strike for a premium of $1.21 each, and selling 10,000 calls up at the September $55 strike at a premium of $0.425 apiece. Net premium paid to initiate the spread amounts to $0.36 per contract, thus preparing the trader to profit should shares in HAL rally another 13.3% over the current price of $44.46 to surpass the effective breakeven price of $50.36 by expiration next month. Maximum potential profits of $4.46 per contract pad the investor’s wallet in the event that Halliburton’s shares surge 23.7% to settle at $55.00 at September expiration. HAL’s shares reached a 52-week high of $57.77 on July 25 before the market meltdown pulled the price of oil and oil and gas companies down with it.

AOL - AOL, Inc. – U.S. stocks are rallying ahead of the FOMC statement this afternoon, recovering somewhat from Monday’s harrowing selloff, but investors in global web services provider AOL suffered more pain today as shares in the name failed to join in the broad market gain. AOL’s shares plunged 22.0% today to $11.75, the lowest traded price since the company’s 2009 spinoff from…
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Technical Tuesday – Twelve Thousand Two Hundred or Bust!

Our winning streak continues! 

With 335M barrels of oil still on fake order at the NYMEX, yesterday’s early morning short play at $100.60 gave us a ride back to $99 and that was good for as much as $536M pre-market.   In the morning post, I said "hopefully we’ll get another crack at shorting oil at $100 or higher" and we did – right at the open – and that was good for a ride back to $99 for another $335M of potential gains (just following through with last Thursday’s plan to break the NYMEX speculators).  

We took the money and ran on those USO June $40 puts at $1.40 (up 22%) in Member Chat at 10:53 but the next rebound in oil didn’t quite get to $100 ($99.88) and we missed the run down to $98.50, which is where it’s sitting this morning.  

Of course, we don’t only short oil…  In my 9:58 Alert to Members I, of course, reminded them that oil was at $100 and shortable again but we also grabbed the QQQ weekly $56 puts for .33 and those finished the day at .55 for a 66.6% gain (the mark of the Blankfein), which is not bad for 6 hour’s work (or so I am told).  We also had a more complicated spread with DDM offsetting SPY as a sort of arbitrage on two spreads.  

Thanks to David Ristau’s guest appearance in Member Chat pre-market, where he mentioned he was jumping on our short oil bandwagon, we selected HAL for a short trade in Member Chat at 10:10 along with our planned PCLN short play (mentioned pre-market in the morning post) and both of those were, of course, huge winners already so thanks for HAL David!  

It wasn’t ALL bearish, we went long on XLF as it hit $14.90 with some short put sales along with a very long-term bull play on HOV but we took a loss bottom-fishing on IWM as the June $79 calls stopped us out after falling from $2.07 to $1.95 (down 5.8%) but we had to try something long to get a little balance or risk being too bearish.  Our bullish sentiment didn’t last long though and we decided to short the Nasdaq futures at the 2,300 line at 11:42, those gave us a spectacular run down
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Fickle Friday – Google Goes Down as Costs Inflate

Well who’d have thunk it? 

The cost of doing business is rising and GOOG happens to be one of those businesses that lacks pricing power as their rates are generally set through an auction process and their users have to VOLUNTEER to pay more money to advertise.  Most advertisers on Google are on fixed budgets, like MSM advertisers and Google has done a great job of replicating that model.  Why then, should it be surprising if a maturing Google begins to look more like a traditional media outlet than a dot com company with exploding growth?  

Don’t get me wrong, we love Google long-term but we did short them as well as BIDU into Google earnings as we felt Google would disappoint enough to spook BIDU investors as well.  We’re taking the short money and running and looking for some bullish plays now – the drop from $630 last month to $545 today is plenty of froth blown off the top for us to get long-term interested again.  As you can see from the tag cloud of the Conference Call, growth is still there, especially in mobile display ads (Android a bit disappointing) and no major negatives.  I’m not going to write a whole thing about GOOG though, there are thousands of people doing that and our Members know well enough where I stand.  I’m more interested in examining the bigger picture.  

We expected Q1 earnings to be rough and we’ve already seen FDX, NKE, ORCL, RIMM, FAST, FCS and AA struggle so hopefully you don’t have to be hit on the head with another whole week of earnings before you get a little more cautious.  Next week we hear from C, HAL, LLY, TXN, BK, GS, INTC, IBM, SYK, USB, VMW and YHOO on Monday and Tuesday and then we’re off to the races with hundreds of companies reporting each week for the rest of the month.  Our job in the first few weeks of earnings season is to get a feel for the quarter and, so far, that feeling is rough.  

It’s all about inflation, of course and don’t say we didn’t warn you about that one!  We went more  bearish up at those 100% lines we’ve been watching and now the question really is – how bad was it?  Inflation is, after all, our long-term BULLISH premise.  We don’t think corporations
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Halliburton Options Trade Smartly

 Today’s tickers: HAL, CSTR, AMAG & FXI, SPY

HAL - Halliburton Co. – A sharp fall in Thursday’s session for oil services and sloppy cement-mixer Halliburton has not gained much traction at the end of the week. The stock today trades on both sides of unchanged and is currently at $31.71. While the prospects for additional liability are pretty much set out on the table following a report showing it provided BP with an unstable cement mix to surround the Macondo oil well, BP didn’t notice or attempt to rectify the error. Halliburton’s November puts are being sold as the stock stabilizes while the smart trade appears to be selling well out of the money call options expiring in April. Around 4,000 call options at the $36 strike price have traded to the bid telling us that an investor is taking a long stock and short call position or is simply just writing premium. The 52-week high at $35.89 remains a tall order after yesterday’s news making the short position in the calls look like a viable proposition.

CSTR - Coinstar Inc. – Coin and DVD-rental-machine operator Coinstar provided a pop for its shares after reporting surging revenues thanks to growth in its DVD-machine operations located in supermarket chains around the nation. Investors were primed for a dip in profits but were left smiling by a 42% increase in revenues on the movie-rental side. Call options on the stock were equally hot property on Friday after the share price jumped by 23% to $56.86. Formerly out-of-the-money call options expiring in November and which were trading at $1.50 yesterday traded all the way up to $8.00 a piece today despite a 20% slide in options implied volatility, typical after earnings. The share price surge put calls at six option strikes in-to-the-money on Friday. Compared to a 10-day average today’s overall options volume stacks up to more than five-times the norm.…
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Options Feeding Frenzy Ensues on Halliburton Co.

 Today’s tickers: HAL, BP, USU, S, POT, VALE & SKX

HAL - Halliburton Co. – Investors are piling into put options on the oil services provider this afternoon following reports that suggest Halliburton shares culpability with BP for failing to act on warning signs that may have prevented the disastrous Deepwater Horizon oil spill in the Gulf of Mexico. At around 1:30 pm this afternoon, HAL’s shares descended into freefall, declining as much as 16.15% to an intraday low of $28.86 in the span of about 30 minutes. Shares gained some composure later in the session, but are still down 10.15% to stand at $30.93 as of 2:45 pm in New York. According to articles on the subject today, HAL submitted documents to the National Commission investigating the BP spill that showed that three out of the four tests of the foam cement conducted by Halliburton before the April 20 blowout indicated the mixture would be unstable. Although Halliburton shared the results of one of two tests conducted in February, neither BP nor Halliburton acted on the information from the foam-stability tests. Uncertainty regarding the impact this new information may have on HAL going forward sent options traders into overdrive and fueled a more than 89.7% increase in the stock’s overall reading of options implied volatility to an intraday high of 62.38%. Investors have driven options volume on Halliburton up to 225,000 contracts as of 3:05 pm. Volume is heaviest in the November contract with the $30 strike put options receiving the most attention. More than 19,000 puts have changed hands at that strike. But, traders are purchasing more bearish contracts as well in case HAL’s shares continue to suffer in the weeks ahead. Pessimists purchased puts at the November $25 strike, where more than 3,400 lots changed hands, at an average premium of $0.39 each. Near-term call options are quite active, as well. The majority of volume in November contract calls appears to be the work of sellers throwing in the towel on the HAL following today’s news story. Longer-term bearishness appeared in the April 2011 contract where one trader initiated a ratio put spread. It looks like the investor purchased 1,250 puts at the April 2011…
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H&R Block Put Options in Play as Shares Drop

Today’s tickers: HRB, XRT, GRMN, HAL, F, MWW & BK

HRB - H&R Block, Inc. – Investors are bulking up on H&R Block put options this afternoon following reports the provider of tax services acquired tax-preparation firm 2SS Holdings for $287 million in cash. HRB’s shares dropped like a rock today, falling as much as 10.445% during the session to hit an intraday low of $12.26. Options traders basically ignored the existence of H&R Block calls and instead focused their efforts on buying up bearish put contracts across several expiries. More than 7.95 put options changed hands on HRB for each single call option in play on the stock as of 3:15 p.m. in New York trading. The sharp increase in demand for put options and the rapid descent in the price of the underlying shares fueled a 33.3% rise in the overall reading of options implied volatility on the stock to 70.39% late in the trading day. Pessimistic players picked up 5,600 now in-the-money puts at the October $12.5 strike for an average premium of $0.24 each. These contracts expire tomorrow, but investors may make money if HRB’s shares trade below the average breakeven price of $12.26 ahead of expiration. Put volume is most significant in the November contract. It looks like investors picked up 9,300 puts at the November $10 strike at a premium of $0.38 each, coveted another 10,300 contracts at the November $11 strike for premium of $0.57 apiece, and purchased approximately 2,500 puts at the November $12 strike for a premium of $0.81 a-pop. Volume in put options generated at each of the strikes described outweighs previously existing open interest at each one many times over. Put players may be scrambling to secure downside protection on existing positions in the underlying shares, or could be enacting outright bearish bets on the stock. HRB’s shares are down 9.50% at $12.39 with 35 minutes remaining in the trading session.…
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Phil's Favorites

Here's how scientists are tracking the genetic evolution of COVID-19

 

Here's how scientists are tracking the genetic evolution of COVID-19

Why do scientists care about mutations on the coronavirus? Alexandr Gnezdilov Light Painting

Niema Moshiri, University of California San Diego

When you hear the term “evolutionary tree,” you may think of Charles Darwin and the study of the relationships between different species over the span of millions of years.

While the concept of an “evolutionary tree” originated in Darwin’s “...



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Biotech/COVID-19

Here's how scientists are tracking the genetic evolution of COVID-19

 

Here's how scientists are tracking the genetic evolution of COVID-19

Why do scientists care about mutations on the coronavirus? Alexandr Gnezdilov Light Painting

Niema Moshiri, University of California San Diego

When you hear the term “evolutionary tree,” you may think of Charles Darwin and the study of the relationships between different species over the span of millions of years.

While the concept of an “evolutionary tree” originated in Darwin’s “...



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ValueWalk

Activists demand revamp of anti-redlining law

By Anna Peel. Originally published at ValueWalk.

Over 100 California Community Organizations and Leaders Call for Banking Regulators to Stop Planned Revamp of Anti-Redlining Law during COVID19 Crisis

Q1 2020 hedge fund letters, conferences and more

Worker, Housing, and Small Business advocates call on all resources to be dedicated to saving lives and responding to Coronavirus

San Francisco--Amongst an unprecedented public health crisis that threatens hundreds of thousands of lives, as small businesses are shuttered across California and the nation, and as millions file for...



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Zero Hedge

"They've Left Me High And Dry": Here Is The Real Reason Companies Have Drawn Down A Record $293 Billion In Revolvers

Courtesy of ZeroHedge View original post here.

One week ago, we reported that starting exactly one month ago on March 5, an unprecedented wave of corporate revolver draws was unleashed, resulting in what JPMorgan calculated was a record $208BN in revolving credit facilities being fully drawn (for the full list of companies see ...



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Kimble Charting Solutions

S&P Repeating 2000 & 2007 Patterns Almost Exactly?

Courtesy of Chris Kimble

Does History Repeat? Is does rhyme sometimes!!!

This chart looks at the S&P 500 on a weekly basis over the past 20-years.

The S&P declined by 50% during the 2000-2003 bear market. On the week of 3/23/2001, it experienced its first counter-trend rally, which lasted 8-weeks, before the bear market resumed.

The S&P declined by 50% during the 2007-2009 bear market. On the week of 3/21/2001, it experienced its first counter-trend rally, which lasted 8-weeks, before the bear ...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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The Technical Traders

Founder of TradersWorld Magazine Issued Special Report for Free

Courtesy of Technical Traders

Larry Jacobs owner and editor of TradersWorld magazine published a free special report with his top article and market forecast to his readers yesterday.

What is really exciting is that this forecast for all assets has played out exactly as expected from the stock market crash within his time window to the gold rally, and sharp sell-off. These forecasts have just gotten started the recent moves were only the first part of his price forecasts.

There is only one article in this special supplement, click on the image or link below to download and read it today!

...

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Chart School

Big moving Averages and macro investment decisions

Courtesy of Read the Ticker

When price is falling every one wonders where demand will come in.


RTT black screen Tv videos study the simplest measure of price (simple moving average). What has happen before guides us now. 














Changes in the world is the source of all market moves, to catch and ride the change we believe a combination of Gann Angles, ...

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Members' Corner

10 ways to spot online misinformation

 

10 ways to spot online misinformation

When you share information online, do it responsibly. Sitthiphong/Getty Images

Courtesy of H. Colleen Sinclair, Mississippi State University

Propagandists are already working to sow disinformation and social discord in the run-up to the November elections.

Many of their efforts have focused on social media, where people’s limited attention spans push them to ...



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Digital Currencies

While coronavirus rages, bitcoin has made a leap towards the mainstream

 

While coronavirus rages, bitcoin has made a leap towards the mainstream

Get used to it. Anastasiia Bakai

Courtesy of Iwa Salami, University of East London

Anyone holding bitcoin would have watched the market with alarm in recent weeks. The virtual currency, whose price other cryptocurrencies like ethereum and litecoin largely follow, plummeted from more than US$10,000 (£8,206) in mid-February to briefly below US$4,000 on March 13. Despite recovering to the mid-US$6,000s at the time of writin...



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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

...

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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.