Option play of the day is a going to be a high risk, high return option play that is held less than a week. It will be based on everything from charts to sentiment. I will keep a return total of all plays in each segment. I will invest $5000 in each options play to keep things comparable. So far up 0% on all trades. Today’s trade is (5) Jan 95 calls for $2.10. I purchased these at $2.05 near the close and may be more by the time it opens but I will use end of day pricing. Reasoning? Of course everyone knows tomorrow is earning for DNA but instead of just straight up gambling I have some reasoning behind my option play. Analyst are expecting .34 cents per share on $1.85 billion in sales. This would leave full years’ earnings growth rate at 50%. Volatility is at 47 and should rise into tomorrow’s earning. If you don’t feel like taking this into earnings, I believe you can make a nice 10-20 % and sell before the close. Here’s why I say take it into close. The chart shows a cup and handle, of which I believe only is good for showing that investors are waiting for some news. Good news will send it north of 100. I believe the sales of Herceptin and Avastin will be higher than expected due to off label usage. Off label use on lung cancer is been quite a bit more than most people realize. I think they guide higher than expected as well. I look for .36 per share with 2006 estimates at the higher side of the range. DNA has been turning in some good quarters and I believe this one will be no different.

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