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This seems timely ...
Option Players Asleep at the Morgan Wheel (MWD)
Tuesday, January 5, 1999
Options guru Bernie Schaeffer sees a strong technical
picture for top financial and investment services firm
Morgan Stanley Dean Witter (MWD). Shares have exhibited
solid relative strength vs. the S&P 500 since MWD's weekly
relative-strength measure rocketed above its 10-day moving
average in mid-October. The long-term view also looks good
as MWD's 10-day and 20-day moving averages just crossed.
"This is a clear sign of technical strength," Schaeffer
says.
Morgan's fundamental picture is also good as MWD has beaten
Wall Street earnings estimates for the past five quarters.
"Despite MWD's strength, the options crowd is showing its
complacency," Schaeffer says, pointing to "near dormant
activity" in the December and January series of options.
"The combination of skeptical and positive technical
developments often leads to healthy profits," he says. He
recently recommended buying the January 2000 80 call
(LWWAP).
For more on Bernie Schaeffer's recommendation see LEAPS
Portfolio," January 1999, The Option Advisor. Bernie
Schaeffer provides practical options recommendations that
are simple to understand and execute.
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