Zacks.com Announces That Dr. Edward Olmstead Highlights Options for the Following Stocks: QLogic Corporation, Forest Labs, and AMR Corporation

Business Wire, June 24, 2004

CHICAGO -- The beauty of options is the ability to pick up profits in a bearish environment. Dr. Edward Olmstead has a pair of intermediate-term bearish trades and a bonus trade to help you capitalize on a slumping share price. Read about options for QLogic Corp (NASDAQ:QLGC), Forest Laboratories Inc (NYSE:FRX), and AMR Corp (NYSE:AMR). Dr. Edward Olmstead is the editor of the Options Professor newsletter. Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=84

Here are the highlights from the Featured Expert column:

Options Play of the Week (6/22/04)

This week Dr. Edward Olmstead and his team provide intermediate-term bearish trades on two stocks. One company is in the semiconductor industry and the other is in the drug industry. Additionally, he provides an intermediate-term bearish Bonus Trade on a company in the transportation sector.

QLogic Corp (NASDAQ:QLGC): On Monday, QLGC closed at $25.48. This company designs and develops storage networking infrastructure components. Based upon fundamental and technical analysis, it is projected that over the next 2 months, QLGC will fall to the level of $22.

Trade: Buy 1 Aug 25 put for $1.6 per share.

Forest Laboratories Inc (NYSE:FRX):On Monday, FRX closed at $61.37. This company develops and sells both branded and generic drugs, including prescription and non-prescription products. Based upon fundamental and technical analysis, it is projected that over the next 2 months, FRX will fall to the level of $58.

Trade: Buy 1 Aug 65 put for $4.9 per share.

The stock opened at $60.90, but quickly fell below Dr. Olmstead's initial downside target of $58. This happened so fast that he suspects very few of you had the opportunity to initiate a trade anywhere near the recommended entry price on the Aug 65 put. FRX is now at a critical support level around $58 and any further weakness could see this stock falling to the level of $54. The recommended Aug 65 put is still the best one to buy even though the price has expanded to about $7.6 per share.

BONUS TRADE

AMR Corp (NYSE:AMR):On Monday, AMR closed at $11.48. This company is one of the world's largest in the air travel industry with its major subsidiaries being American Airlines and American Eagle. Based upon fundamental and technical analysis, it is projected that over the next 2 months, AMR will fall to the level of $10.

Trade: Buy 1 Aug 14 put for $2.8 per share.

Get much more of Dr. Edward Olmstead's information on these trades by clicking: http://at.zacks.com/?id=85

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