1.   Also, you actually own all the underlying stocks in the portfolio and can redeem HOLDRs shares for the underlying stocks.

2.   An investor with a stock option could offset the ups and downs of its market price by buying and selling shares of the underlying stock in a precise manner.

3.   An option gives the holder the right to buy the underlying stock at the strike price.

4.   An option gives the holder the right, but not the obligation, to buy the underlying stock at the strike price.

5.   And if the underlying stock soars, he will get part of the profits.

6.   Because they provide leverage, moving up or down in value more than proportionately to changes in the underlying stock, options lend themselves to speculation.

7.   A call option gives a trader the right to buy shares of the underlying stock at a specified price and by a specified expiration date.

8.   A correlation between the index and the performance of volatile high-technology shares could allow investors to reduce the risk in trading the underlying stocks.

9.   A call option gives an investor the right to buy shares of the underlying stock at a specified price and by a specified expiration date.

10.   A put option gives an investor the right to sell shares of the underlying stock at a specified price and by a specified expiration date.