---------------------- Forwarded by Mark - ECT Legal Taylor/HOU/ECT on
01/15/99 09:20 AM ---------------------------

	Enron Capital & Trade Resources Corp.

	From:  xtrials@optioninvestor.com (Option Investor Newsletter     Trials)
                       01/14/99 09:28 PM

Please respond to xtrials@optioninvestor.com
To: Option Investor Newsletter Trials <xtrials@optioninvestor.com>
cc:  (bcc: Mark - ECT Legal Taylor/HOU/ECT)
Subject: Thursday - Option Investor Newsletter 2 of 2

The Option Investor Newsletter         Thursday  1-14-98
Copyright 1998, All rights reserved.
Redistribution in any form strictly prohibited.

PICK NEWS - CALLS (continued)
*******************************************************
AOL  $144.50 -$1.25 (-2.00)  Hmmmmm-AOL flat for the week?
NOT!!  We deliberated whether to keep or drop AOL today,
but decided to keep it.  Read on.  AOL spiked up to close
at $165 earlier this week and has shed $20 in the last 3
trading days since.  Especially noted was the drop of $9
yesterday on 25 million shares (10 million more than
average-not a good sign).  Today though, AOL held up well
in the face of strong down-market forces on lower than
average volume.  It is, after all, the most stable of the
Internet stocks and is not going away.  While AOL feels
comfortable like a family pet, remember it's a trade that's
gone against us, and normally we would get out.  But with
the shaky Brazilian market perhaps drastically affecting
the rest of Latin America, we think the bad news and fear
is already in this stock.  We think of it more like a
rubber band stretched in reverse where the farther it's
stretched back, the harder it will snap forward.  It's
nerve-racking waiting for the bounce, but AOL is a split
candidate over $120 and should give us a great performance
once it snaps.  With a record breaking Christmas and 22,000
new users every day, AOL's earnings should be great.  Look
for the split announcement any day, or at the latest, with
earnings due Feb. 9 per Zack's. (There has been some
confusion on the actual date; Motley Fool board says as
early as Jan. 27.  We'll keep you posted.)  Still an
Internet-guts required.  Play with caution.

WCOM  $71.00 $2.94 (-4.00)  In this type of trading
environment where the "big picture" whollops the average
company press release, it pays to sit on the sidelines.  We
warned in Tuesday's letter that WCOM may need to
consolidate a bit before moving up, and urged discipline
before entering another trade.  We hope you waited.  WCOM
is still a great play, but we still need to wait for the
recovery before playing this pick.  They are now at their
30 day moving average and should bounce off it, market
permitting.  $70 is their support price.  Wait for the
bounce.  If it breaks below $70 and holds, we'll re-
evaluate and likely drop it.  WCOM is in high-bandwidth
content delivery tests with AOL, which should be successful
and more fully implemented through Bell Atlantic and SBC's
DSL services.  Remember too, they just won the FTS2000
contract (worth $5 billion)to provide the U.S. Government
with voice and data services for the next 8 years

T  $82.13 -$2.63(-$2.93)  AT&T is holding up quite well
given the market retrenchment this week.  The need to move
voice and information throughout the world will not
diminish, even in a down market.  AT&T could actually
become a low cost producer who benefits from cost-conscious
users exercising corporate belt-tightening.  It behaves
like a safe haven in a down market and a tech stock in an
up market.  Volume has been heavy over the last 2 days.  If
investors wanted to dump this stock, we'd have seen more
damage to the price.  Support is at $82 with better support
at $80.  AT&T's prospects are still great with the
integration of TCI helping to complete the "last mile" of
service availability to your home.  AT&T continues to melt
the copper in favor of fiber replacement at every turn.
Wait for the bounce and confirm market direction before
playing.

DELL  $77.63 -$1.69 (-$0.18)  Dell is holding up nicely
this week given the weak market performance.  Dell's volume
has also been weak.  We spoke with investor relations and
are now able to determine that volatility has greatly
diminished, and since their split in September, volume too.
Dell used to trade 50 million shares per day on average.
As the daily average is figured, the high numbers drop off
and new, lower numbers replace them.  This will naturally
reduce the average until it more closely resembles the
actual daily trades currently taking place.  It should not
be long until these 2 more closely resemble each other.  In
other words, the low volume is no longer cause for alarm
and supports our original assessment that huge daily price
swings are a thing of the past.  Dell's story is still the
same-big sales increases, more markets served, higher
margins.  When Dell's news season picks up (Feb.-March
according to investor relations), Dell will again be on
investors' radar screens.  Nothing's changed; they're just
a little quieter.  Still on our favorites list, consider
the slight retrenchment as a buying opportunity when the
market gets over its jitters.  Now's a good time to scale
into the trade, but confirm market direction first.

LXK $97.00 3.25 (-3.56) LXK fell with the rest of the market
on Thursday. We still like LXK with earnings coming up on
the 19th of January and the strong possibility of a stock
split. The Open Buying on the Internet(OBI) standard has taken
another leap forward with the adoption of Lexmark Interna-
tional's new OBI-compliant Internet purchasing system.  The
Kentucky-based printing solutions company has adopted a new
system that eliminates many of the manual processes Lexmark
previously used to purchase indirect materials.  Lexmark
has partnered with SupplyWorks, a Web-based purchasing
services company.  For the first time, buyers are not required
to purchase software to manage supplier connections.

LOW $51.38 -.31 (-3.31) LOW showed some nice strength today
with a loss of .6%. The DOW went down over 2%. LOW was
listed as one of the stocks picked in the dartboard contest.
Whether the professionals picking LOW is good or not is
a decision you'll have to make (just kidding). Look to last
Sunday for why LOW is a pick.  LOW's has earnings in mid-
February.  No new news.

ATI $78.81 +1.56 (-.19) ATI bucked the trend on Thursday, and
went up. Rumors continue to circulate about ATI being merged
with either BellAtlantic or Vodaphone. It's rumored that VOD
is offering in the range of $90 a share. The question now is
whether Bell is willing to raise its bid to match VOD. Thursday's
price increase was mainly due to this speculation. Bell did
just get notice from the SEC that its bid would classify as
a pooling of interests.  ATI is still $11 away from the rumored
bid by Vodaphone.

LU $105.93 +1.69 (-9.32) LU is a great company, with stock
split possibilities, and earnings coming up: so why are we
dropping it? We aren't. We have re-added LU to the pick list.
Last Tuesday we dropped LU because of the buyout situation
with Ascend. On Wednesday, the deal went through and it seems
LU has finished dropping. LU opened on Wednesday at $98.50,
yet closed at $104.50. LU is scheduled to report earnings on
January 21st. This date is in debate. We will try to get the
official date from LU directly. Though they are just short
of shares necessary to do a 2-1 stock split, they could
announce a split with earnings, contingent to the vote on
increasing shares in February.

BUY CALL FEB-105 LU-BA OI=1395 at $ 9.25 SL=6.75
BUY CALL FEB-110 LU-BB OI=4290 at $ 6.75 SL=5.00
BUY CALL APR-110 LU-DB OI=2978 at $11.25 SL=8.50
BUY CALL APR-115 LU-DC OI=3300 at $ 9.00 SL=6.50

XIRC $38.13 .50 (-.37) XIRC has held up pretty well through
this market debacle.  Earnings are on January 21st and XIRC
has announced earnings with surprises of no less than 10% over
the last four quarters.  This normally will help XIRC to have
an earnings run into the announcement. XIRC's 10-dma is at
$37.00. Watch for upward movement before initiating new plays.

PICK NEWS - PUTS
******************

PUT PICK NEWS WAS NOT AVAILABLE BY PRESS TIME DUE TO
TECHNICAL PROBLEMS AT PINNACLE.

******************
NEW CALL PLAYS
******************

COF  Capital One Financial $127.18 1.18 (-.12 for this week)

Capital One Financial, a financial services holding company,
is the parent for Capital One Bank, one of the US's top 10
credit card companies. Using the information on consumers in
its massive databases, the company solicits Visa and
MasterCard customers by mail. The company's 3,000 variations
of annual percentage rates, credit limits, finance charges,
and fees range from platinum and gold cards for preferred
customers to secured and unsecured cards for customers with
limited credit histories. Other subsidiaries include a
federally chartered savings bank that offers credit cards,
consumer lending, and deposit services and a company that
provides internal support services.

COF is near its 52-week high and when this stock breaks out,
it tends to really go. We feel with earnings coming up on the
19th of January and the possibility of a stock split, this
could end up being a great play. COF is sitting right on its
20-dma and held up pretty well compared to the market. Watch
for upward movement and then jump on for the ride.

Preliminary numbers for credit card numbers are looking very
positive for the holiday season. An analyst at JP Morgan feels
that COF outperformed its peers. An analyst at Goldman Sachs
stated; "The combination of strong fees driven by account
growth improvement in core credit is likely to produce very
strong earnings visibility at both Capital One and Providian."
Earnings are expected to come in strong.

BUY CALL FEB-125 COF-BE OI=118 at $9.38 SL=6.75 ITM $2.18
BUY CALL FEB-130 COF-BF OI=188 at $6.75 SL=5.00
BUY CALL MAR-130*COF-CF OI=916 at $9.75 SL=7.50
BUY CALL MAR-135 COF-CG OI=  0 at $7.88 SL=6.00 (NEW STRIKE)

Picked on Jan 14th at $127.18   PE=30
Change since picked     +0.00   52 week low =$ 50.56
Analysts Ratings    9-4-3-0-0   52 week high=$132.50
Last earnings  10-98 est=1.00   actual=1.00
Next earnings  01-19 est=1.04   versus= .86

Chart = http://quote.yahoo.com/q?s=COF&d=3m
************************************************************
TLAB - Tellabs $80.69 -$0.44(+$6.38 this week)(P3W $10.18)

Tellabs is quickly becoming a powerhouse in the Telecom
equipment industry. With their TITAN and CABLESPAN systems,
and its DXX multiplexers, TLAB is raking in the money from
customers among the telephone companies, cable operators,
and government agencies.  Though they faded from news of
their failed merger of Ciena, Tellabs is still a major player.

TLAB spiked up $13 last Tuesday to $78 on 11 million shares,
$8 higher than resistance previously set at $70.  We thought
it would quickly fall back; we were wrong.  TLAB drifted back
to $74, then spiked $5 to $79, on average volume of 3.5 million.
Over the previous 3 trading days, it gained in market weakness
while giving back only $.44 in heavy trading in a downright
bearish market-a terrific sign of strength.  Technical
indicators are positive, so is the chart indicating a small
correction already taking place.  3.5 million shares traded
daily; 147 million shares in float; $3.14 per share in cash;
34% return on equitystrong fundamentals.   TLAB will be a
winner when the market turns.  We expect them to announce more
contracts in the coming weeks.  Recent news is capturing
investors' eyeballs, making for a good story.

Here goes.  Monday, Warburg, Dillion Read raised ther rating
to a "buy" citing raised earnings per share estimates to $2.35
and $2.93 from $2.30 and $2.85 for 1999 and 2000, respectively.
They further stat, "fundamentals for the telecom equipment
group has improved over the past few months which improves
visibility for Tellabs" and "Our checks with Tellabs will
report fourth quarter 1998 results slightly better than our
$0.58 earnings per share estimate, as well as having a positive
outlook for 1999" (Reuters).  Also, rumors surfaced last week
that TLAB was a targeted buyout/merger candidate, but were
quickly squashed.  Not soon enough though to draw investor
attention to the price move.

BUY CALL FEB-75 TEQ-BO OI= 776 at $9.63 SL=6.75,ITM
BUY CALL FEB-80 TEQ-BP OI=1267 at $7.00 SL=5.25,ATM
BUY CALL FEB-85 TEQ-BQ OI= 885 at $4.63 SL=2.75,OTM
BUY CALL MAR-80 TEQ-CP OI= 603 at $8.75 SL=6.50,ATM-more time
BUY CALL MAR-85 TEQ-CQ OI= 851 at $6.63 SL=4.75,OTM-more time

Picked on Jan. 14th   $80.69            PE= 38
Change since picked   $00.00            52 week low =$33.38
Analysts Ratings 15-11-3-0-0            52 week high=$93.12
Last earnings on 09-98 est=.46  actual=.49
Next earnings on 01-26 est=.59  versus=.42

Chart = http://quote.yahoo.com/q?s=TLAB&d=3m
************************************************************
DIS - Disney $36.06 -.06 (+3.50)

Striving to be the premier entertainment company, Disney has
revenues of $10,055.1 million. It is involved in movies,
television, theme parks and resorts, home video, travel,
books, music, theater, and creative design. Recently, It has
added an internet portal in a joint venture with Infoseek, in
which it has a 43% stake.

The past year has been tough for Disney, due to high
programming costs at its ABC division, and to weak demand for
its products in Asia.  Last week Merrill Lynch's Jessica
Reif Cohen lowered earnings estimates for the current fiscal
quarter from .27 to .23, and for the fiscal year ending Sept.
1999 from .91 to .86. She cited softness in consumer products
and broadcasting operations, and continued weakness in Asia.
However, three other analysts believe the stock is oversold
and that DIS is experiencing a recovery.  On Jan.12th, Goldman
Sachs raised their rating from Neutral to Outperform, and
Salomon Smith Barney raised theirs from Neutral to Buy. On Jan.
11th, ING Baring Furman Selz upgraded DIS to Buy from Hold.
On Jan. 12th, Disney and Infoseek launched their new
Internet portal site, Go Network (www.go.com).  Numbers show
that it will be one of the top 5 sites on the Internet.
Following the upgrades and the new portal launch, Disney
stock has performed well. Its chart looks good and it has
pushed through the major moving averages. Although it was
down today along with a lot of other stocks, it is still
up $3.50 for the week, showing strength.

Disney is still ironing out final details for production
and technical workers to return to work following a one
day strike on Nov. 3rd. Their contract had expired 3/97. The
company has named Thomas Schumaker a new president and put
him in charge of its animated movie and theater business. Also,
DIS may acquire Goldenbooks and is interested in Livent Inc.,
a theater co. When the market resumes its upward movement,
look for Disney to move back up.  Earnings are due out by
next Thursday (1/21) according to First Call.

BUY CALL FEB-35 DIS-BG OI=2699 at $3.13  SL=$1.50
BUY CALL FEB-40 DIS-BH OI=1061 at $1.00  SL=$0.00
BUY CALL APR-35 DIS-DG OI=7780 at $4.13 SL=$2.50
BUY CALL APR-40 DIS-DH OI=6098 at $2.00 SL=$1.00

Picked on Jan 14th at  $36.06           P/E=33
Change since picked:  +  0.00           52 week low =$22.50
Analysts' ratings 2-10-11-0-0           52 week high=$42.78
Last earnings on  9/98 est=.15 act=.16  surprise=7%
Next earnings    01-21 est=.26 versus .36

Chart = http://quote.yahoo.com/q?s=dis&d=3m

*************
NEW PUT PLAYS
*************

Adobe Systems, Inc. (ADBE) - $47.69
Software

Adobe Systems, Inc. (ADBE) is a leading provider of publishing
and imaging software technologies, and the second largest
desktop software company in the world with annual revenues
approaching $1 billion. Adobe develops, markets and supports
computer software products that enable users to create,
display, print and communicate all forms of electronic
documents. Computer application products accounted for 78%
of fiscal 1997 revenues and licensing, 22%.

The Company continues to be cautious about licensing revenue
in the short term due to weak Japanese market conditions and
uncertain timing of OEM customer introductions of products
incorporating Adobe's latest technologies. The Company is
coming out of a recent restructuring and trying to focus its
resources on high growth revenue opportunities in digital
color, color inkjet, short-run on-demand digital printing,
and digital copiers... although licensing revenue is likely
to be flat in the short-term. Other risks include product
shipment delays, market acceptance of new products and
upgrades, declines in printer licensing business.

Stock likely to fail at key resistance point of $48.
Declining relative strength and aggressive earnings
projections may disappoint. Many analysts have a hold on the
stock. Slight distribution taking place among top
institutional shareholders. Likely to test 52 week lows.

Play: Failed Rally

BUY PUT FEB-50 AEQ-NJ OI=123 @ $4.63 SL=3.00
BUY PUT FEB-45 AEQ-NI OI=6 @ $2.06 SL=1.00

Chart = http://quote.yahoo.com/q?s=ADBE&d=3m

COMBINATION PLAYS   Bang! Booommm! Craaash!...What was that???
******************************************************************
January 13, 1999 update

U.S. stocks crumbled at the opening on Wednesday morning on news
that Brazil's central bank president had resigned, sparking an
across-the-board flight to quality that rocked world stock markets.
The Dow was off 136, the Nasdaq down 113 and many issues had not
yet begun to trade. By mid-morning, stocks were on the rebound,
lifted by a recovery in Brazil and massive bargain hunting. By
noon, the panic was gone and many traders were selling partial
positions to lock-in gains. At the close, the Dow fell 125 points
to 9349.56 and recouped more than half its early losses. Even so,
the decline was viewed as a reminder of market vulnerability after
a series of record highs.

Our portfolio was very active. We will begin with the new plays:
LU was the focus of our attention and it dropped hard with the
rest of the high visibility techs. The stock traded as low as $96
but the first option prices available for the FEB105C/110C left
us with a debit of $1.75. Morgan Stanley raised its rating of LU
to a "strong buy" late in the morning and that helped the stock
move higher through the day. LUV was the next offering and it was
also significantly lower at the open. The first few trades on the
FEB22C/25C went through at about $1.25 debit. LEVL was far less
affected by the morning activity and the best we could do on the
FEB30C/35C was $3.25 debit. DIS was our personal play-of-the-day
and we managed to trade along with everyone else (fighting the
overwhelmed internet brokerages) with a $4.00 opening cost-basis
for the JAN00-40C/FEB40C LEAPS/Calendar spread.

In other portfolio plays; It was a great opportunity to double-up
(reducing the cost-basis) on some of the more favorable debit
positions. AOL and OXHP were our candidates and these stocks were
down at the open. The prices were: AOL, FEB155C/160C at $1.50 and
OXHP, FEB17C/20C at $1.00. We will reflect these separate trades
in the monthly summary. Of course, some of the calendar spreads
were in need of a correction and we used the opportunity to pare
losses from the recent run-up. Short positions were closed on:
ATI; JAN70C at $7.00, GM; JAN70C at $11.00, and PCS; JAN22C at
$2.38.

T was quite a mover! In the morning melee, we purchased the JAN80C
at $2.50 (with the stock price near $82) and subsequently closed
the FEB80C during the midday rebound for $8.50.

One other opportunity arose on the NXTL straddle. The MAY35P could
have been closed for $5.25, leaving the long (call) option; MAY30C
at cost of $2.87.

January 14, 1999 update

U.S. stocks tumbled Thursday afternoon as the impeachment trial
against the President added pressure to an already shaken market.
Political instability is a catalyst for investor uncertainty and
that was evident as the DJIA fell 228 points to 9120, erasing all
the big gains for 1999. The Nasdaq Composite Index was also lower,
down 40 points at 2276. Stocks have been poised for a downturn
following the recent run-up in prices but some thought the strong
U.S. economy would protect the stock market from the impeachment
drama. However, the trial opened in an investment climate that had
already been shaken by the devaluation of Brazil's currency and
jittery investors flocked to the exits.

On Thursday, we used the morning bounce to fill some of our open
calendar positions: On ATI, we rolled up to the FEB75C at a bid
price of $7.25; GM was also moved to a diagonal spread with the
sale of the FEB75C for $8.50 and PCS was moved to the next higher
strike with a FEB25C at $2.87. These spreads are no longer neutral
and are now more aggressive with the new strike positions but we
expect all of these stocks to remain at-or-above current prices.

For Friday, we still have a number of suspect issues. CPQ and CD
are near the sold strikes and we may need to close those positions
before the day is over. FTU is fading as the merger speculation
dwindles and LU is still "one to watch" as the ASND deal unfolds
and the company earnings report aproaches. Good Luck!

    - NEW PLAYS -
******************************************************************
CIEN - Ciena Corp.  $18.68     Merger Speculation

CIENA Corporation designs, manufactures and sells architecture,
dense wavelength division multiplexing systems for fiberoptic
communications networks. In September, Ciena and Tellabs cancelled
their merger agreement and shares in the rival equipment makers
fell sharply after Ciena's financial outlook soured, primarily
because an expected contract from AT&T fell through. In early
January, coverage was initiated by Prudential as the telecom
sector started to soar. Then the share price spiked on speculation
the telecommunications equipment-maker might find a merger partner
after the announced purchase of Ascend by Lucent. Some say there
is a market rumor that Cisco Systems is preparing a bid of $25-$28
per share for Ciena. Technically, the stock price is back in a
recent trading range around $17 (November-early December) and we
will use this previous support and the excellent OTM premiums to
create a favorable play.

PLAY (very conservative):

BUY  CALL FEB-12.50 EUQ-BV OI=351  A=$6.75
SELL CALL FEB-17.50 EUQ-BW OI=4098 B=$3.25
NET DEBIT TARGET=$3.38 ROI(max)=47%

PLAY (conservative):

BUY  CALL FEB-12.50 EUQ-BV OI=351 A=$6.75
SELL CALL FEB-20.00 EUQ-BD OI=281 B=$2.12
NET DEBIT TARGET=$4.38 ROI(max)=71%

Chart = http://quote.yahoo.com/q?s=CIEN&d=3m
******************************************************************
SDTI - Security Dynamics  $25.50     Put-Credit Spread

SDTI provides enterprise network and data security solutions to
help companies conduct business securely, protect corporate assets
and facilitate electronic commerce. Most of the recent lawsuits
have been forgotten and the analyst upgrades have had a positive
effect. The company started a market trial program designed to
simplify implementation of higher levels of security for customers
like IBM and also introduced SecurWorld, a new flexible program
for delivering two-factor authentication on the web. Just a good
technical play with Internet bias. The stock price is trading
above all recent resistance and the current trend remains bullish.

PLAY (aggressive):

BUY  PUT FEB-17.50 QSD-NW OI=25 A=$0.87
SELL PUT FEB-20.00 QSD-ND OI=12 B=$1.38
NET CREDIT TARGET=$0.62 ROI=33%

Chart = http://quote.yahoo.com/q?s=SDTI&d=3m
******************************************************************
SRCM - Source Media  $20.87     Put-Credit Spread

SRCM is a provider of on-demand information and programming
through cable television and telephone lines, using the company's
proprietary digital operating systems to mass market consumers.
Source Media delivers more than 15,000 advertiser-driven audio
programs. Customers can subscribe to Source Media audio content
and have it featured on their web site as a type of Internet radio
show. The company has launched new audio programming with online
broadcaster, Broadcast.com which includes weather, sports and
stock news. SRCM says the roll-out of Internet audio shows means
it now has content and advertising on personal computers, digital
cable TV and telephones. A rumored deal with American Online may
also be causing some of the buying pressure and the stock has good
technical suppport around $17.

PLAY (aggressive):

BUY  PUT FEB-15.00 SQ-NC OI=2   A=$1.38
SELL PUT FEB-17.50 SQ-NW OI=280 B=$2.00
NET CREDIT TARGET=$0.75 ROI=$42%

Chart = http://quote.yahoo.com/q?s=SRCM&d=3m
******************************************************************
AAPL - Apple Computers  $41.38     Put-Credit Spread

AAPL designs and manufactures and markets personal computers and
related personal computing and communicating solutions for sale
to business, education, home and government customers. A few weeks
ago, shares of Apple jumped after its iMac consumer PC was named
the top-selling personal computer at the retail level during the
month of November. Not only was the iMac the leading product, it
has been the number one selling PC since its introduction back in
August. The iMac has captured 5.9% of retail unit sales and it was
the only PC to break into the top five best-sellers group in four
months.

Now the bad news; one day after reporting excellent earnings, APPL
dropped $5.12 when an analyst voiced concerns about the pricing of
its iMac. This surprise downgrade comes even as the computer maker
reported revenues that easily surpassed Wall Street expectations.
The APPL chart looks negative from a short-term perspective but
there is still a long history of support around $37. Play this one
on downward momentum by opening the long position first. Then sell
the short position when the stock price firms, to create the credit
spread.

PLAY (aggressive):

BUY  PUT FEB-$35.00 AAQ-NG OI=400 A=$1.18
SELL PUT FEB-$37.50 AAQ-NU OI=400 B=$1.75
NET CREDIT TARGET=$0.75 ROI=42%

Chart = http://quote.yahoo.com/q?s=AAPL&d=3m
******************************************************************
REFER TO THE MID-WEEK PLAY OF THE DAY...SUNW...
******************************************************************
SUNW - Sun Microsystems  $94.50     Calendar Spread/LEAPS

SUNW supplies enterprise network computing products including
desktop systems, servers, storage subsystems, network switches,
software, microprocessors and a full range of services.

Personally, I just like this company from long-term perspective
and the "Covered-calls on LEAPS" strategy is a favorable way to
take advantage of the extreme near-term option premiums.

Please refer to the January 12, newsletter article concerning
SUNW for more information:

http://www.optioninvestor.com/playoftheday/index.asp

PLAY (conservative/long-term):

BUY  CALL JAN00-100 LSU-AT OI=1580 A=$19.63
SELL CALL FEB-100   SUQ-BT OI=3181 B=$5.87
NET DEBIT TARGET=$13.50 ROI TARGET=100%

Note: In the long-term calendar spread, we are reducing the net
cost of the LEAP by the amount of credit from the sale of the
nearer term call. If the near-term call expires worthless, we will
sell the MAR call to further reduce our debit. If your short-term
position is ITM on the last day of the strike, you need to buy it
back so that you DON'T have to exercise the long-term position. In
that case, your LEAP is going up in value also and on the last day
of the strike period, the short call will shrink down to intrinsic
value so you will be ahead in the play even after you buy it back.

Chart = http://quote.yahoo.com/q?s=SUNW&d=3m

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---------------------- Forwarded by Mark - ECT Legal Taylor/HOU/ECT on
01/15/99 09:20 AM ---------------------------

	Enron Capital & Trade Resources Corp.

	From:  trials@optioninvestor.com (Option Investor Newsletter     Trials)
                      01/14/99 09:18 PM

Please respond to trials@optioninvestor.com
To: Option Investor Newsletter Trials <trials@optioninvestor.com>
cc:  (bcc: Mark - ECT Legal Taylor/HOU/ECT)
Subject: Thursday - Option Investor Newsletter 1 of 2

The Option Investor Newsletter         Thursday  1-14-98
Copyright 1998, All rights reserved.
Redistribution in any form strictly prohibited.

Posted online for subscribers at http://WWW.OPTIONINVESTOR.COM

Also provided as a service to The Online Investor Advantage

Published three times weekly, Sunday, Tuesday, Thursday evenings.
************************************************************
MARKET WRAP  (view in courier font for table alignment)
************************************************************
        1-14-98         High     Low     Volume   Advances Decline
DOW     9120.93 -228.63 9359.08  9087.72  797,953k    880   2,145
Nasdaq  2276.82 - 39.99 2338.29  2276.36 1015,400k  1,898   2,175
S&P-100  600.85 - 11.98  614.39   599.06   Totals   2,778   4,320
S&P-500 1212.19 - 22.21 1236.81  1209.48            39.1%   60.9%
$RUT     420.10 -  4.76  426.99   420.10
$TRAN   3080.28 - 89.14 3180.96  3077.42
VIX       34.74 +  3.48   36.79    31.33
Put/Call Ratio      .70
*************************************************************

Japan, Asia, Russia, Brazil. Who is next??

Another day, another excuse for profit taking. The market sold off
again with the Brazilian flu along with a dose of impeachment blues.

The market started down early and showed little interest in turning
around. The rumors from Brazil were all negative. Coupled with the
resignation of yet another government official the rumor that the
Central Bank was set to let the Real float knocked the Brazil market
for another -10% loss. Floating the Real, the Brazilian currency,
would be a drastic devaluation since the currency would then be free
to find its own level.

Floating could start the domino theory fall of all the surrounding
Latin American countries that depend on Brazil for trade. Chile and
Argentina would be the first to go. If South America were to devalue
as a group then the countries who export to South America would be
put on a diet. The U.S., depending on who you talk to and what area
they reference, exports to South America account for between 17-25%
of our total. Companies like Colgate derive 40% of their revenue from
Latin countries.

If the feared event happened then the results would be drastic. The
companies who derive a large percentage of their business from there
would suffer huge earnings shortfalls. Layoffs could occur, plant
closings, etc. That would be the extreme but it is possible. Possible
but not probable. There are many things that can and will happen
before we get to that point. Rest assured that every Fed head in the
world is concerned about the Brazil problem. The IMF will be very
interested in preventing this scenario. Cardosa is very interested.
Power and pressure are being brought to bear. The Brazil Central
Bank issued a strongly worded press release stating they would use
every means at their disposal to prevent floating the Real. They
said they would use their $50 bln in reserves to protect the Real.
This was only minimally comforting to the market this afternoon.
Memories of many other countries last minute claims to the same
intent, and then immediate devaluation, are fresh. Russia was the
latest. While analysts feel there could be serious impacts from a
possible worst case, they also feel that the market has now discounted
the most likely scenario which is months of protracted, painful,
negotiations ending in an agreement of some sort to yet another bail
out. No harm, no foul. Just uncertainty.

Meanwhile the market has now "corrected" five percent off its record
high of just last week. My how short our memory can be. 9643, only
five trading days ago. Champagne was already being ordered for the
Dow 10,000 celebration. Should we cancel the order? Not hardly.

As I have said many times the market cycles. Remember last week when
I kept warning you about an impending bout of profit taking. Its'
here and I don't think it is over. Fear of darkness is only beaten
out by one other thing. Fear of a long holiday weekend. Yep, closed
Monday for MLK day. I have already had one of my brokers call me to
ask if I want some currency positions left open over the long weekend.
Seems the currency market closes at 1:PM on Friday. Now if you were
a country that needed to manipulate some currency to benefit your
country, a U.S. holiday would be the perfect time. Don't laugh.
Japan does it all the time. The same thing on a smaller scale can
happen to stock profits held over a holiday. Events happen, mass
exodus at Tuesday's open. Remember Wednesday morning?

You may think I have put on a fur coat. Far be it from the truth.
I am long several hundred contracts of tech stocks and I am looking
for a recovery soon. Again, being long does not make me right, just
very interested in the outcome.

I have not elaborated on the market impact from the impeachment trial
and won't because I don't think there is any impact. As I have said
before, the chances of a guilty vote are about zero and the market
knows this.

If you watched any market TV today then you know the Internet stocks
are finally starting to weave. They are getting beat from all sides.
Brokers are cutting the ratings on the high flyers left and right.
Funny how the smell of blood brings out the crowd. Nobody would cut
them last week when they were adding $20 a day. It is dogpile time
now. To add insult to injury the online brokers are now starting
to prevent customers from actually buying the stocks. I am not
kidding. Some have taken them off the margin list. If you want to
buy you have to pay cash, 100%. Others will not let you buy them
online. You have to call a broker and wait on the line while they
verify your eligibility to purchase high risk investments! Others
refuse to execute the trades at all. You might hurt yourself. Does
it strike you strange that Internet brokers will not let you buy
Internet stocks??? What ever happened to the concept of "it is
your money not theirs." In the face of this conspiracy to protect
you from yourself the Internets are losing ground quickly. Except
AOL. AOL has somehow avoided the label of "overpriced" and actually
garnered several honorable mentions from analysts downgrading other
Internet stocks. Guess where Internet money will go now?

For you technicians out there the pendulum has swung from
overbought to oversold in a very short period of time. The Dow
is now down -522 points in the last five days. Both the Dow and
the Nasdaq have corrected about 5%. Just as the sharp run up last
week was begging for a dip, this sharp dip is now begging for a
rally. The big drop today was on the lightest Dow volume in over
a week. Not as much conviction today just a lack of buyers. This
was also the third triple digit loss in a row. As I mentioned
earlier I think the odds for a down day Friday are still pretty
good. The wild card again is the options expiration which normally
provides an upward bias. I can't build a case for a strong move
upward because of Brazil and the holiday but I can see a strong
Tuesday coming as long as Brazil does not meltdown over the weekend.
Earnings will be on us in earnest next week with MSFT, LU, SUNW
announcing along with dozens of others. I think the focus on
Brazil will have dimmed and the anticipation of upside surprises
will take center stage.

Good Luck

Jim Brown

Market Posture
*******************************************************
As of Market Close - Thursday, January 14, 1999

                   Major Support
Broad Market         /Resistance    Last    Posture/Since  Alert
****************************************************************

DOW Industrials    9,400   9,730   9,121    BEARISH   1.14 *
SPX S&P 500        1,200   1,280   1,212    Neutral   1.12
OEX S&P 100          580     635     601    Neutral   1.12
RUT Russell 2000     400     435     420    Neutral   1.12

NDX NASD 100       1,900   2,010   1,906    Neutral   1.08
MSH High Tech        870     980     931    Neutral   1.08

                   Major Support
Technology           /Resistance    Last    Posture/Since  Alert
****************************************************************
XCI Hardware         800     875     836    Neutral   1.08
CWX Software         600     665     619    Neutral   1.08
SOX Semiconductor    360     400     392    Neutral   1.08
NWX Networking       400     450     427    Neutral   1.08
INX Internet         425     570     474    Neutral   1.08

                   Major Support
Financial            /Resistance    Last    Posture/Since  Alert
****************************************************************
BIX Banking          660     710     647    BEARISH   1.14 *
XBD Brokerage        545     725     638    Neutral   1.14 *
IUX Insurance        600     620     588    BEARISH   1.14 *

                   Major Support
Other                /Resistance    Last    Posture/Since  Alert
****************************************************************
RLX Retail           800     860     814    Neutral   1.08
DRG Drug             720     795     740    Neutral   1.08
HCX Healthcare       710     780     726    Neutral   1.08
XAL Airline          310     350     312    Neutral   1.12
OIX Oil & Gas        245     260     240    BEARISH   1.14 *

Posture Alert

After tumbling more than 350 points over the past two days, we
have turned BEARISH across the Dow Jones 30 and select
industry sectors including Banking, Insurance and Oil & Gas.

A detailed description of our Market Posture and its
applications can be found at:

www.optioninvestor.com/marketposture

Market Sentiment - By Pinnacle Capital Advisors
******************************************************************

Stay Focused on the Pinnacle Index

After selling off precipitously over the past couple of days, it
is very important to keep in eye on the Pinnacle Index and other
put/call ratios for clues as to whether the sell-off is a major
reversal or profit taking.

Based upon the early returns, it appears that most option
speculators are viewing the sell-off as profit taking and this
could be prove BEARISH over the near-term.  Despite the negative
economic news from Brazil, the Pinnacle Index actually climbed
and other put/call ratios indicate increased call buying.

Add this to the latest Bullish figures from Investors
Intelligence (60% Bullish 1/14) you get the impression that
investors are ignoring economic and corporate earnings pressures.

Pinnacle's short-term indicators are still flashing bearish
overtones over the near-term so we advise subscribers to
tightly protect their long positions.  Any questions
regarding market sentiment can be directed at:
pinnacle@optioninvestor.com

Market Sentiment at a Glance
********************************************************************
                                Friday    Tues    Thurs
Indicator                       (1/8)    (1/12)   (1/14)   Alert
********************************************************************

Pinnacle Index (OEX):
-----------------------------------------------------------------
Overhead Resistance (620-635)             1.3      2.3
Underlying Support  (595-610)             2.4      2.4

Put/Call Ratios:
-----------------------------------------------------------------
CBOE Total P/C Ratio               .5      .5       .5
CBOE Equity P/C Ratio              .4      .4       .4     *
OEX P/C Ratio                     1.2     1.2      1.2

Peak Open Interest (OEX):
-----------------------------------------------------------------

Puts                              575     575      575
Calls                             620     630      630
P/C Ratio                         1.3     1.0      1.0

Market Volatility Index (VIX):
-----------------------------------------------------------------
CBOE VIX                         24.8    26.4      34.0     *

Investors Intelligence:
-----------------------------------------------------------------
Bullish                          58.3%   58.3%     60.0%    *
Bearish                          30.0%   30.0%     30.0%

The Power of Expectation Analysis

It has often been said that the crowd is right during the
market trends but wrong at both ends.  Measuring and
evaluating the sentiment of the crowd, therefore, can give
savvy option traders a decided edge.

Pinnacle Index
-----------------------------------------------------------------
OEX                             Friday    Tues     Thurs
Benchmark                       (1/8)     (1/12)   (1/14)
-----------------------------------------------------------------

                    (630-635)               1.9      3.8
                    (620-625)                .8      1.5
Overhead Resistance (620-635)               1.3      2.3

OEX Close                        636.0    616.5    600.9

Underlying Support  (595-610)               2.4      2.4
                    (605-610)               1.5      1.7
                    (595-600)               4.1      4.1

Average ratings:
Resistance levels 2.0 / Support .5

What the Pinnacle Index is telling us:
Overhead sentiment resistance is Moderate at the OEX 620/635
level while the underlying support is moderately firm.

Put/Call Ratio
-----------------------------------------------------------------
                                Friday    Tues     Thurs
Strike/Contracts                (1/8)     (1/12)   (1/14)
-----------------------------------------------------------------
CBOE Total P/C Ratio              .50       .49       .52
CBOE Equity P/C Ratio             .38       .36       .38
OEX P/C Ratio                    1.16      1.19      1.23

Peak Open Interest (OEX)
-----------------------------------------------------------------
                     Friday          Tuesday          Thurs
Strike/Contracts     (1/8)           (1/12)           (1/14)
-----------------------------------------------------------------
Puts                 575 / 12,419    575 / 13,004     575 / 13,896
Calls                630 / 10,341    630 / 12,009     630 / 14,349
Put/Call Ratio       1.20            1.03             .97

Volatility Index (VIX)
-----------------------------------------------------------------
                    Major
Date                Turning Point       VIX
-----------------------------------------------------------------
October 97          Bottom              54.60
July 20, 1998       Top                 16.88
October 8, 1998     Bottom              60.63
January 11, 1998    Top                 26.38

January 14, 1999                        34.01

Investors Intelligence Survey
-----------------------------------------------------------------
                    Major             Percent     Percent
Date                Turning Point     Bullish     Bearish
-----------------------------------------------------------------
October 97          Bottom            22.0        48.3
July 20, 1998       Top               52.0        24.0
October 8, 1998     Bottom            38.5        42.7
January 11, 1999    Top               58.3        30.0
January 14, 1999                      60.0        30.0   *

Please view this in COURIER 10 font for alignment
*****************************************************
RESULTS THIS WEEK

Index Last Mon Tue wed Thu Week
Dow 9121 -23 -145 -125 -229 -522.39 Going for five in a row.
Nasdq 2277 40 -64 -4 -40 -67.59
$OEX 601 -7 -13 -4 -12 -35.17
$SPX 1212 -11 -24 -5 -22 -62.9
$RUT 420 2 -6 -3 -5 -11.13
$TRAN 3080 -74 -80 -37 -89 -280
$VIX 34.74 2.5 3.3 4.9 3.5

Stock Price Mon Tue wed Thu Week

CMGI 105.0 71.75 -5.25 -17.3 -8.44 40.75 Dropped
ASND 82.13 5.25 -1.75 5.38 1.81 10.69 Dropped..bought by LU.
TLAB 80.69 5.19 -2.00 3.63 -0.44 6.38 New pick, Showing strength
SUNW 94.50 3.13 -0.63 3.44 -2.31 3.63 IBM and SUNW-in your dreams
DIS 36.06 2.69 2.75 -1.87 -0.06 3.50 New pick
EMC 93.88 1.31 -4.38 1.81 1.56 0.30 Momentum still strong
COF 127.1 -0.81 2.19 -0.31 -1.19 -0.12 New pick, Split Candidate
ATI 78.81 1.00 -0.50 -2.25 1.56 -0.19 Got to decide: Bell or VOD
DELL 77.63 4.19 -1.56 -1.13 -1.69 -0.19 Showing strength for the week
XIRC 38.13 1.25 -1.88 0.75 -0.50 -0.38 Earnings are next week.
MYG 63.25 0.25 -0.25 -0.06 -0.69 -0.75 This may break its winning streak
FTL 17.06 0.44 -1.31 -0.50 -0.06 -1.43 Still waiting for that bid
AOL 144.5 18.63 -11.5 -7.88 -1.25 -2.00 One tough Internet
T 82.13 0.31 -1.13 0.50 -2.63 -2.95 No real sellers
LOW 51.38 -1.44 -0.06 -1.47 -0.31 -3.28 Show of strength today
GDT 103.6 10.94 -5.81 -5.13 -3.38 -3.38 Dropped
JBL 71.31 0.56 -2.69 -0.75 -0.69 -3.57 Holding up under pressure
LXK 97.00 1.75 -1.94 -0.13 -3.25 -3.57 Earnings next Tuesday
WCOM 71.00 0.00 -2.50 1.44 -2.94 -4.00 Consolidating
SLR 83.56 -1.06 -0.06 -3.44 -1.50 -6.06 Announced 2:1 and did nothing
UTX 108.5 -2.50 -0.94 -1.31 -2.31 -7.06 Dow sensitive
MSFT 141.7 -2.38 -5.31 1.63 -2.06 -8.12 Still a split candidate
LU 105.9 -2.31 -5.06 -3.63 1.69 -9.31 Looking strong, watch out CSCO
JPM 102.0 0.00 -2.63 -5.25 -4.56 -12.44 Dropped..Brazilian exposure
AMZN 138.0 24.38 -21.2 -15.3 -10.0 -22.25 Dropped

Puts

XCIT 65.13 * * -5.75 -4.25 -10.0 Internet sell-off
MRK 144.7 -3.13 -2.75 -0.56 -2.63 -9.07 Dow dropper
BAC 62.50 * * -1.50 -2.94 -4.44 S. American worries?
WLA 71.13 -3.25 -1.88 -0.06 1.44 -3.75
ERTS 44.00 -0.69 -1.00 -0.69 -0.88 -3.26
DD 54.88 * * -0.81 -2.13 -2.94
BMCS 37.75 0.69 -0.94 -0.38 -1.88 -2.51 Picking up speed?
BDX 39.25 -0.50 -0.44 -0.63 -0.75 -2.32
CBE 43.25 * * -0.50 -0.50 -1.00 Consistent
AVT 45.69 0.56 -2.25 3.06 -2.13 -0.76
HSY 59.81 * * -0.81 0.38 -0.43
PKN 93.50 * * -0.06 -0.31 -0.37
CPB 45.94 * * 0.69 0.38 1.07
LLY 81.50 -2.69 0.31 4.19 0.81 2.62

PICKS WE DROPPED
****************
When we drop a pick it doesn't mean we are recommending a sell
on that play. Many dropped picks go on to be very profitable.
We drop a pick because something happened to change its
profile. News, price, direction, etc. We drop it because we
don't want anyone else starting a new play at that time.
We have hundreds of new readers with each issue who are
unfamiliar with the previous history for that pick and we
want them to look at any current pick as a valid play.

CALLS:
******

CMGI $105.00 -8.44 (+40.75) After being derailed by the
Brazilian devaluation bomb midweek, the market when into
a tailspin and the Internets were no exception.  After
Monday's earth shaking surge of $71.75, CMGI has dwindled
away 31 points in the last 3 days ($62 pre-split).  With
a host of downgrades raining down on several of the big
hitters in the Internet sector, we figure it is time to
dodge the bullet before some valuation happy analyst sets
their sights on CMGI.  We are cutting CMGI loose and
hopefully it's consolidation will be quick.

AMZN $138.00 -10.00 (-22.25)  Brazilian devaluation.
Analysts' downgrades due to valuation.  Bearish short-term
remarks.  Impeachment proceedings.  Option expirations.  What
else can we add to the mixture in this pot of volatility??
Amazon had been doing just fine when it popped up over +$75.00
last week.  Not this week!  On Thursday in a sign of weakness,
Amazon finished only two and a half points off its low for the
day to close at $138.00.  Even earnings reports from companies
such as Yahoo that beat estimates weren't enough to carry
sympathy plays like Amazon into positive territory.  We are
dropping Amazon as a pick.  This is not to say that Amazon
won't turn around- and soon.  But in light of current
circumstances, we feel there are safer plays to be in.

ASND $82.13 +1.81 (+10.69) We finally got the price that LU is
paying for ASND, and it is .825 shares of LU for each share of
ASND.  The reason we are dropping ASND is because it has
effectively turned into a LU play since the purchase price has
been announced.  There is a little more room for ASND to move
given the share ratio, but typically the acquiree does not
close the gap completely because of the uncertainty of the deal
being closed.  There is no hint of competing bids, but ASND
would be a current play again if a bidding war started for it.

SLR $83.56 -1.50(-6.07) We are dropping SLR with the idea
we might pick it back up closer to the earnings report and
stock split date. As predicted, SLR announced a 2-1 stock
split this week. They announced after close on Wednesday.
Unfortunately, with the market volatility, SLR went down on
the day. We did see an opening that sent SLR up a few dollars,
but this faded into a loss by days end. SLR could definitely
see a split and earnings run, but we feel it's better to wait
for confirmation.

JPM  $102.00 4.56 (-12.44) The comeback in financial stocks
was derailed this week.  Hammered by the problems in Brazil,
JPMorgan lost another $4.56 today.  When we initiated this
play, JPM had momentum and its chart looked good.  However,
it's exposure to Brazil is too great, and given the seriousness
of the political and economic troubles in that country, we
have to drop JPM as a play.

GDT  $103.63  3.38 (-3.37) Guidant has lost ground since
setting an intra-day high of $119.75 on Monday. With just
13 days to go before it splits, GDT should be cruising into
a split run. It tried on Monday, but weakness in the overall
market has held it back. If the market turns positive again,
so will Guidant.  However, with the questionable market
footing we are going to cut Guidant loose until things firm up

PUTS:
******

NONE

PICK NEWS - CALLS
*******************************************************

FTL  $17.06 -.06 (-1.44)  FTL was added as a possible take
over play this week.  Something is going on but what?  We
are constantly pouring over news and rumor mongers only to
discover on Wednesday morning wires, trading was halted for
a block of shares (73,100) to trade at $16.06 down $-1.56.
Then we read about 100,000 shares being crossed by
Goldman Sachs.  Plus another 100,000 was traded at $17 today
by Salomon Smith Barney.  Unlike the techs' FTL did not suffer in
todays' trading, opening $17.69, taking a little off the table
to $16.69 then closing at $17.06.  Not providing a great
warm a fuzzy feeling, but enough of a feeling to keep this
as a play.  Remember, rumors are predicting a buyout at $23
or more.

MYG $63.25 -0.69 (-0.75)  Between Tuesday and Wednesday, MYG
seemed to be holding its own and only lost thirty-one cents
as the market dropped a combined -270.33 points.  But
Brazilian woes continued and the market plummeted another
-228.63 on Thursday.  Maytag fought and fought but finally,
the market scored a point with a knock-down.  Maytag was
stunned and conceded -$0.69.  MYG is normally a strong play
and is still one of our split candidates.  But, the market
is extremely volatile and we suggest waiting for things to
turn around before starting any new plays.

SUNW $94.50 -2.31 (+3.62)  Sun is one of the brightest stocks
on Wall Street even though the Brazilian storm continues to
darken the market.  Sun is up +$3.62 on the week from positive
press releases and rumors of a possible take-over by IBM.  On
Wednesday, CNBC presented the rumor which ended up being
dismissed as smoke but option trade volume increased none the
less.  We will keep you posted of any changes in the scenario.
In other news, Morgan Stanley Dean Witter raised its 12-month
price target for SUNW to $132, up from the previous price of
$104.  Not only does Sun have the only end to end computing
platform used in telecommunications services, it is also
working on incorporating its Java technology into the digital
TV industry.  Even though SUNW got ruffled by the market and
dropped -$2.31 on Thursday, SUNW is still a strong play.
Earnings for the company are scheduled for Jan 21st (not the
15th as we had previously reported), a prime time to announce
a possible split.  Look at the additional dip as a buying
opportunity but wait for some signs of a turn around before
entering.  Trying to catch a falling knife tends to damage
fingers and trading capital.

EMC $93.88 +1.56 (+.31) EMC is a pretty amazing momentum stock.
The NASDAQ is down 1.7% today, and EMC goes up.  On Wednesday,
EMC's gap down went as low as $84, but it was such a fast
market it probably was not a price you could have gotten
easily.  During the first 15 minutes of trading on Wednesday
1 million shares were traded.  This was almost half of
Wednesday's volume, and one-third of EMC's average daily
volume. There hasn't been any news on EMC, but then again, it
doesn't look like we need any.  FYI  In our Sunday write-up we
had EMC's earnings release date as 1/28, but we have since
learned that the release date is either 1/25 or 1/26.

JBL $71.31 -.69 (-3.56) JBL held up pretty well today
considering the action in the market.  I am sure that the
coverage initiated on JBL by Everen Securities helped.  The
press release did note, however, that in the near-term they
believe that JBL is close to fair value, but in the long term
it should be an outperformer.  The other bit of news that
probably helped JBL was that Solectron announced a two for one
stock split.  As we have said on more than one occasion, this
industry tends to move together, but JBL appears to be the
upper crust of a volatile group.

UTX $108.56 2.31 (-6.13) UTX is very Dow sensitive.  Let's
illustrate it.  The Dow is down 2.3% today and UTX was down
2.1%.  It has been that way all week.  The only thing at this
point that would probably change UTX's price movement is a pre-
earnings announcement one way or the other.  UTX announces
earnings next week.  On the news side, we are amazed at the
number of varied businesses of UTX.  For example, today UTX
announced that its Hamilton Standard unit signed a letter of
intent to joint venture with KLM Royal Dutch Airlines to focus
on the maintenance of pneumatic aircraft components.  In the
press release it indicated that it's Hamilton unit also makes
space suits for the NASA shuttle program.  Only play UTX if the
Dow is moving up.

MSFT  $141.75 -$2.06 (-8.13)  Like we said, don't try to
catch a falling knife.  Though, we shrugged off an ugly
beginning to finish over 1 point positive yesterday, today
we gave it back, and then some.  We're still positive on
MSFT given their trial has begun to produce positive news,
like their appeal of the Judge's decision to force MSFT to
use Sun's version of Java in its Windows operating system,
and a new stream of MSFT-friendly witnesses on the stand.
Furthermore, Prudential Securities said analyst Doug Crooke
initiated coverage of Microsoft Corp. with a rating of
accumulate and a price target of $175 a share.  MSFT is
still a split candidate at over $140 and will announce
earnings January 19 after the close.  We realize that
trading options is inherently risky and caution to wait for
a reversal in the stock and the overall market before
starting another play.  If it falls another day, let it
fall.  The point is to catch a good entry on the way up,
not on the way down.

***** Play updates continued in section two *****

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You may also fax the information to: 303-797-1333

*************************************************************
                      DISCLAIMER
*************************************************************
This newsletter is a publication dedicated to the education
of options traders. The newsletter is an information service
only. The information provided herein is not to be construed
as an offer to buy or sell securities of any kind. The
newsletter picks are not to be considered a recommendation
of any stock or option but an information resource to aid the
investor in making an informed decision regarding trading in
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delivery times due to factors beyond our control.


IntercontinentalExchange
Firm Power Price Bulletin
For Power Delivered on Friday, November 23, 2001
(Trade Date of Wednesday, November 21, 2001)
Click here to access index history.
* volume represents sell-side only *
 Hub 	 High 	 Low 	 Wtd Avg Index 	 Change ($) 	 Vol (Mwh)
 Cinergy 	 $17.50 	 $14.75 	 $15.47 	 -5.42 	 7,200
 Comed 	 $13.00 	 $13.00 	 $13.00 	 -3.00 	 800
 Entergy 	 $18.50 	 $16.50 	 $17.06 	 -3.26 	 11,200
 Nepool 	 $28.50 	 $28.25 	 $28.38 	 -3.62 	 3,200
 * Palo Verde 	 $22.00 	 $17.50 	 $19.99 	 +4.33 	 16,800
 PJM-West 	 $20.10 	 $19.90 	 $19.99 	 -5.47 	 33,600
 * SP-15 	 $23.95 	 $20.00 	 $22.75 	 +5.26 	 28,800
 TVA 	 $15.50 	 $15.00 	 $15.25 	 -5.08 	 2,400

                                    * Trade date of Tuesday, November 20th, 2001

For Power Delivered on Monday, November 26, 2001
(Trade Date of Wednesday, November 21, 2001)

* volume represents sell-side only *
 Hub 	 High 	 Low 	 Wtd Avg Index 	 Change ($) 	 Vol (Mwh)
 Cinergy 	 $21.00 	 $18.00 	 $19.14 	 +3.67 	 11,200
 Comed 	 $17.50 	 $17.00 	 $17.33 	 +4.33 	 2,400
 Entergy 	 $20.50 	 $18.00 	 $19.33 	 +2.27 	 8,800
 Nepool 	 $32.75 	 $31.75 	 $32.33 	 +3.95 	 2,400
 Palo Verde 	 $23.00 	 $20.00 	 $21.00 	 +1.01 	 6,000
 PJM-West 	 $25.15 	 $24.75 	 $24.90 	 +4.91 	 18,400
 SP-15 	 $24.50 	 $23.25 	 $23.90 	 +1.15 	 6,800
 TVA 	 $19.50 	 $17.00 	 $18.70 	 +3.45 	 4,000

Includes all trades done from 6 AM to 11 AM Central Prevailing Time on the trade date specified for financially firm power delivered during the on-peak hours (6 AM - 10 PM CPT for Eastern hubs / 6 AM - 10 PM Pacific Prevailing Time for Western hubs) on the delivery date(s) specified.
IntercontinentalExchange is the world's most liquid trading platform for over-the-counter energy and metals.  Active markets include North American power and natural gas, global crude and refined oil products, and precious metals.  Traded instruments include forwards, swaps, and options.
In order to receive the proprietary information contained in this email, you acknowledge and agree that you shall not further disseminate the IntercontinentalExchange Market Data contained herein to any person or entity without the express written consent of IntercontinentalExchange.   Furthermore, you acknowledge that (1) IntercontinentalExchange has exclusive and valuable property rights in this data; (2) IntercontinentalExchange's data is being made available to you only for your own business or personal activities; and (3) you cannot communicate the data, in any form, to any other person or entity without the express written consent of IntercontinentalExchange.
This data is provided to you free of charge.  IntercontinentalExchange reserves the right to cancel this service at any time for any reason or no reason at all.
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To become an Exchange Participant or inquire about the indices, please contact sales@intcx.com.
To unsubscribe from this service, click here unsubscribe.
?Copyright IntercontinentalExchange, Inc. 2001, All Rights Reserved.


Ken Lay gave a high profile presentation on the current natural gas supply
and price situation at a recent conference held by the Interstate Oil and Gas
Compact Commission, and some of the best graphs came from work that Stinson
and Hector did (see the attached, slides #11, #12, #14, & #15).

I really appreciate their research and hope to be able to use their talents
again for presentations for the Office of the Chairman..

- Rob

Robert L. Bradley Jr.
Director, Public Policy Analysis
Enron Corp.
P.O Box 1188, Room 4724a
[1400 Smith Street 77002]
Houston, Texas 77251-1188

(P) 713-853-3062
(F) 713-646-4702

Assistant: Joan Stransky 713-853-4702
jstrans@enron.com


Jim,    Bob Frank called me re: the presentation--and the lawyers in the
Industrial Markets Group have been invited.  Thanks for  including us.   Julia

Julia Heintz Murray
Enron North America Corp.
1400 Smith Street, EB3838
Houston, TX  77002
(713) 853-4794
Fax:  (713) 646-3393
julia.murray@enron.com

	James D Steffes@ENRON
	12/12/2000 04:17 PM

		 To: Julia Murray/HOU/ECT@ECT, Mark E Haedicke/HOU/ECT@ECT
		 cc:
		 Subject: UETA/UCITA presentation - Thursday 12/14 10 a.m. - Room 4741

Julia & Mark --

FYI.  I am not sure who (if anyone) from your groups would be interested in
this topic, but I wanted you to know that Bob Frank has arranged a
presentation on the UETA / UCITA matter.

Jim

----- Forwarded by James D Steffes/NA/Enron on 12/12/2000 04:14 PM -----

	Robert Frank
	12/12/2000 11:51 AM

		 To: Mark Greenberg/NA/Enron@ENRON, Alan Aronowitz/HOU/ECT@ECT, Lisa
Yoho/NA/Enron@Enron, Sue Nord/NA/Enron@Enron
		 cc: James D Steffes/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron
		 Subject: UETA/UCITA presentation - Thursday 12/14 10 a.m. - Room 4741

Jeff Dodd will be here this Thursday (12/14) from 10 a.m to noon, to discuss
UETA, ESIGN and UCITA.  Jeff is a nationally recognized expert in these
areas.  Basically, this is an opportunity to get a free primer and to explore
how legal developments in these areas may affect your respective areas of
concern.
Feel free to invite others who may be interested.

I have attached a draft agenda prepared by Jeff.


Article II of the NONCOMPETITION AGREEMENT entered in connection with the sale of HPL to AEP (which closed as of June 1,2001) provides:

	"ENA [for 3 months post-close] will not  solicit, negotiate or enter into any contract, agreement or arrangement for the purchase of natural gas on the HPL Pipeline from any Person which is a supplier or producer of natural gas connected to the HPL Facilities; provided, however, nothing herein shall be construed or interpreted as prohibiting ENA from entering into any such contract, agreement or arrangement which is less than one month in duration and involves or is related to an Enron Online transaction."

 This is not the most clearly drafted provision as it was the subject of much negotiation....and was significantly narrowed from the  original scope proposed by AEP.  Thus, please consult with me prior to entering into any solicitation, agreement or arrangement which might arguably be covered by our limited covenant not to compete on the supply side for 3 months.  There are many aspects of the post-close transition which will require cooperation between Enron and AEP/HPL and thus, it behoves us to carefully weigh the risks and rewards of "stepping too close to or over the line".

Further,although a technical reading of the non-competition agreement only applies to ENA, no ENA UPSTREAM deals which would violate this covenant if there were to be done as ENA should be done without clearance from Brian Redmond and me.

Please communicate this restriction to those who report to you and have need to be aware of this limited restriction.

Sincerely
 BNG

	Dan J Hyvl 06/07/2001 04:59 PM 	   To: Barbara N Gray/HOU/ECT@ECT  cc: Jeffrey T Hodge/HOU/ECT@ECT  Subject: ONEOK Energy Marketing and Trading Company

Barbara,
	This appears to be supply deal for deliveries at Katy that would be subject to the 90 day non-compete.  Sandi is in the process of getting me a copy of the non-compete so that I can determine if this deal is covered.  Do you have any thoughts.
----- Forwarded by Dan J Hyvl/HOU/ECT on 06/07/2001 04:56 PM -----

	Richard Deming/ENRON@enronXgate 06/07/2001 02:22 PM 	   To: Dan J Hyvl/HOU/ECT@ECT  cc:   Subject: ONEOK Energy Marketing and Trading Company

Dan,

Please find below details of Phy Gas deals with GTC agreements:

Deal Date: 6/06/01
Deal No: VF1896 / 835431
Buyer: ENA
Seller: ONEOK Energy Marketing and Trading Company
Start Date: 7/01/01
End Date: 6/30/02
Firm
Volume: 10,000 / day
Price: HOU.SHIP-LGPKG.IF.M.I minus USD 0.03000
Delivery Point: Exxon Katy - Katy Tailgate

Please let me know if you need any more details.

Thanks,
Richard
x54886


I would like to take Friday the 25th and Monday the 28th off (some of last year's vacation).  Please let me know if okay.

Joanne Rozycki
Senior Administrative Assistant
Enron North America Corp.
1400 Smith Street, EB3880D
Houston, TX  77002
Phone:  (713) 853-5968     Fax:      (713) 646-3490
Email:   joanne.rozycki@enron.com


Not at all, keep pushing for stellar.  That's what everyone wants.

Things went very well in Portland.  Belden, Kaufman, and Steffes seem very
interested and positive.  It is kind of a culture shock to see young people
like
Belden carrying so much weight.  Its a refreshing change from most utilities
and
govt agencies where age seems to be a prerequisite for responsibility, and
reminds me of when your former boss Gigi Coe said to me that the CPUC couldn't
hire more young people because of age discrimination issues (if that's not a
perverse result of a well-meaning policy...).

Whatever happened to Debra Stump, do you know?  She was the GSPP class of 2000
that we had exchanged some messages about last spring.
Rob

> -----Original Message-----
> From: jdasovic@enron.com [SMTP:jdasovic@enron.com]
> Sent: Tuesday, August 29, 2000 11:19 AM
> To: gramlr@pjm.com
> Subject: RE: Tentative meeting Monday 8/28 at 5 pm/2 pm
>
>
> Likewise.  Hope I'm not being to much of a pain on the calls.   Just that
> Enron---I'm quite certain---won't lend it's name to anything that's less
> than stellar.  And I'm sure GSPP would like for the conference to be all
> that it can be, too.  How'd things go in Portland?
>
> Best,
> Jeff
>
>
>
>
> gramlr@pjm.com on 08/29/2000 07:12:41 AM
>
> To:   jdasovic@enron.com
> cc:
> Subject:  RE: Tentative meeting Monday 8/28 at 5 pm/2 pm
>
>
> I got the message but not til today because our e-mail was down.  It was
> good to
> talk to you last night.
>
> > -----Original Message-----
> > From:   jdasovic@enron.com [SMTP:jdasovic@enron.com]
> > Sent:   Monday, August 28, 2000 3:02 PM
> > To:     gramlr@pjm.com
> > Subject:     Re: Tentative meeting Monday 8/28 at 5 pm/2 pm
> >
> >
> > I can be on the call.  Please let me know if you get this, since I've
> been
> > having severe email problems.  Thanks.
> >
> >
> > Best,
> > Jeff
> >
> >
> >
> >
> > gramlr@pjm.com on 08/25/2000 07:04:27 AM
> >
> > To:   MichaelBerg@ICFConsulting.com, whederman@columbiaenergygroup.com,
> >       doornbos@socrates.berkeley.edu, amosher@appanet.org,
> >       hcameron@uclink.berkeley.edu, lfried@uclink.berkeley.edu,
> >       jeff.dasovich@enron.com
> > cc:   jalamo@enron.com
> > Subject:  Tentative meeting Monday 8/28 at 5 pm/2 pm
> >
> >
> >           Please confirm that this schedule works.  It is the only day
> > that worked for everyone.  Jeff Dasovich is still in the Sierras so I can
> > check
> > in with him Monday.
> >
> >           The agenda sounds simple but don't be deceived, there are many
> > many options.  Please be prepared with a list of 3 top speaker choices.
> >
> >           1.  Topics of panels.
> >
> >           2.  Speaker list.  Try to agree on an 'A' list who we can start
> > calling and a 'B' list of alternates.
> >
> >
> >
>
>
>


Please try to schedule a call with Justin and Paul in London and  Alison at
ISDA over the next week or so.  Mark
---------------------- Forwarded by Mark E Haedicke/HOU/ECT on 12/08/99 09:46
AM ---------------------------

Alison Smythe <ASMYTHE@isda.org> on 12/08/99 08:08:05 AM
To: Mark E Haedicke/HOU/ECT@ECT
cc: Susan Hinko <SHINKO@isda.org>, Rosemary Ryan <RRYAN@isda.org>, Yasuko
Horibe <YHORIBE@isda.org>, Richard Grove <RGROVE@isda.org>
Subject: RE: AGM 2000--Energy Derivatives Panel

Dear Mark,

Thank you for your suggested topics.  I will forward your e-mail on to Susan
Hinko as I understand she will be working on this panel with you.  I would
be happy to arrange a conference call for sometime next week.  Please advise
on who should participate on the call and I can issue an e-mail requesting
the participants availability.

Until we have the conference call, I will amend the agenda to include your
suggested topics below.  Once we determine who should participate on the
call, I will circulate the agenda to all conference call participants.  I
agree that it will be a good time to have an Energy Derivatives panel in
Europe during the AGM as I understand there has been a lot of activity in
this market in Europe.

By the way, I understand that Sylvia contacted our office regarding the
dates for Strategic Planning in 2000.  Strategic Planning is scheduled for
Wednesday, June 7 through Friday, June 9 at the Sonoma Mission Inn & Spa in
Sonoma, California.  Please mark your calendar.  The Board Meeting during
the AGM will be held on Wednesday, March 15 and Thursday, March 16 during
lunch on each day.

Please let me know about scheduling a conference call by Friday, December
10.

I look forward to hearing from you and best regards,
Alison Smythe

-----Original Message-----
From: Mark E Haedicke [mailto:mhaedic@ect.enron.com]
Sent: Tuesday, December 07, 1999 7:04 PM
To: Alison Smythe
Cc: jboyd@enron.co.uk; psimons@enron.co.uk; mbrown@enron.co.uk
Subject: Re: AGM 2000--Energy Derivatives Panel

Alison:

I think the energy panel at the AGM on March 17, 2000 in Amsterdam should
discuss (i) development of energy trading on the continent, (ii) energy
documentation issues and (iii) regulatory barriers to energy trading.  This
is a great time to do a panel on energy trading in Europe!  I will copy Paul
and Justin in London to get their ideas on both topics and panel members.
Perhaps we can have a conference call next week.

Mark


Dear Eric Bass,

This holiday season, 1-800-FLOWERS.COM would like to extend a special holiday
offer to you for being a valued customer.  This offer is only available for a
limited time only, so please act now!

Click here to view catalog:
http://www.s2u2.com/content.asp?wci=version&wnd=0&status_id=23274514

Happy Holidays,
Your Friends at 1-800-FLOWERS.COM


If any of you plan to send this newsletter for external distribution than the following disclaimer needs to be attached to it

Enron Industrial Markets and its affiliates are engaged in the trading of forest products and related commodities, and swaps, options, forwards and other derivatives on such commodities, for their own accounts and such trading could affect the markets for or prices of such commodities or derivatives.  The markets for and prices of such commodities and derivatives could also be affected by a variety of other factors, including supply and distribution factors, activities of other market participants and economic conditions generally.  Enron Industrial Markets and its affiliates assume no liability or responsibility for the accuracy or completeness of any information contained herein or for ensuring that any such information is current or updated.  The views set forth herein are intended solely for the personal use of the recipient, should not form the principal basis for any investment or trading decision and are not intended as advice or as a recommendation or solicitation of any transaction.  The user is solely responsible for any investment or trading decisions made on the basis of this information.  The information set forth herein is subject to change without notice at any time.

thanks,
Monika Causholli


Yes, they are taken care of. But in the future we need to devise some sort of
communication from Lisa Kinsey so if there
is a change with Cilco, it is communicated to either you or me or Aimee or
Kenny or someone and it is reflected on our
withdrawal report.

GG

Daren J Farmer
03/21/2000 11:57 AM
To: George Grant/HOU/ECT@ECT
cc:
Subject: CILCO STORAGE

George,

Are you looking into these variances?

D
---------------------- Forwarded by Daren J Farmer/HOU/ECT on 03/21/2000
11:56 AM ---------------------------
KENNY J
SOIGNET
03/21/2000 08:58 AM

To: Daren J Farmer/HOU/ECT@ECT, Aimee Lannou/HOU/ECT@ECT, George
Grant/HOU/ECT@ECT, Fred Boas/HOU/ECT@ECT
cc: Howard B Camp/HOU/ECT@ECT, Rita Wynne/HOU/ECT@ECT
Subject: CILCO STORAGE

The Cilco volumes are different than the confirmed volumes to Cilco.  Please
review the attached the spreadsheets from Lisa Kinsey, the central desk
scheduler responsible for the Cilco account.  The biggest variance is in
January 2000.  Cilco withdrew 200,000 mmbtu's more than we booked @ bammel.
Please let me know the best way to correct the problem.  I suspect the
variance is showing up as a transport imbalance.  Also, the nomination for
the current month is 7,327 mmbtu instead of 7,000 mmbtu per day.  7,000 is
the volume delivered to Cilco after transport fuel.

---------------------

Lisa Kinsey
03/21/2000 08:12 AM
To: Kenny J Soignet/HOU/ECT@ECT
cc:
Subject: CILCO STORAGE

Kenny,
Attached is the worksheet that I have been using to verify Cilco's storage
balance with Vonda Seckler from Cilco.  Let me know if you need anything
else.

Lisa Kinsey
ext 37628


---------------------- Forwarded by Steven Harris/ET&S/Enron on 05/15/2001 02:21 PM ---------------------------
From:	Louis Soldano/ENRON@enronXgate on 05/15/2001 02:13 PM
To:	""Lawrence A. Ruzow" <laruzow@concentric.net>@ENRON" <IMCEANOTES-+22Lawrence+20A+2E+20Ruzow+22+20+3Claruzow+40concentric+2Enet+3E+40ENRON@ENRON.com>@SMTP@enronXgate, Jim McCartney (Business Fax)@Jim McCartney@+1 (713) 654-7869@FAX@enronXgate, Johnny McGee/ENRON@enronXgate, Steven Harris/ET&S/Enron@ENRON
cc:	Drew Fossum/ENRON@enronXgate, Mary Kay Miller/ET&S/Enron@ENRON

Subject:	Navajo Agrmnt

  We received in the mail today and original fully executed copy of the Extension Agreement and Resolution adopted by the Resources Committee.   Stan has a copy and our financial folks are arranging for a wire transfer for Friday of the $15 million.  Thanks for everyon's hard work and especially for thier perseverence.


Folks:  Please see highlighted sections.  Anyone seen Byron's plan?  Know where it's headed, etc.?

Best,
Jeff
*************************************************************************
Power purchase bills exceed $7.5 billion
Published Tuesday, July 10, 2001, in the San Jose Mercury News
BY MARK GLADSTONE, NOAM LEVEY AND DION NISSENBAUM

Mercury News Sacramento Bureau

SACRAMENTO -- Six months after jumping into the electricity business, the Davis administration on Monday provided the first detailed glimpse of California's daily power purchases, showing more than $5 billion in payments, much of it to government-owned utilities and private companies that state officials have branded as price gougers.
The state spent an additional $2.5 billion on a variety of contracts and other electricity services designed to stabilize the volatile energy markets, according to documents that the state agreed to release last week amid a legal dispute over public access to the data.
In roughly the first five months of the year, the state shelled out $1.2 billion to Atlanta-based Mirant, the most any company was paid for electricity, followed by $1 billion to Powerex, the marketing arm of BC Hydro in British Columbia. It also paid $331 million to the Los Angeles Department of Water and Power.
The documents raise questions about some of the common assumptions that have arisen around the electricity crisis. For instance, almost 40 percent of the state's purchases have come from government-run power generators in California and elsewhere, but not Texas; some of the biggest suppliers are from the Northwest.
Gov. Gray Davis, who has ambitions to run for the White House, has put much of the blame for the soaring costs of power on energy companies based in President Bush's home state.
The figures are tucked inside 1,770 of pages of invoices that Davis has resisted divulging, saying disclosure would encourage suppliers to charge more. The state, which last month released information on its long-term electricity contracts worth $43 billion, agreed Thursday to release the first quarter details.
Short on explanation
The figures were disclosed late Monday by the California Department of Water Resources, which buys power for the state's financially strapped major utilities, and seem to buttress the administration's contention that the price of power is gradually dropping but offer little or no explanation for what prompted the decrease.
In January, for instance, the average price for power on the spot market was $321 a megawatt hour. It peaked in April at $332 and dropped to $271 in May.
One megawatt powers about 750 homes.
Davis spokesman Steve Maviglio said the price data supports the governor's assertions that California has been gouged. ``The bad guys are clearly the out-of-state generators,'' Maviglio said. ``There has been a significant shift of money out of California.''
But the documents fail to shed much light on whether, as the administration contends, the price drop was due to long-term power contracts negotiated by the state earlier this year. Critics contend that the Davis administration panicked and rushed into deals that commit the state to pay high prices for many years.
Used for support
Republican officials used the price information to bolster their attacks against Davis, a Democrat, for signing long-term contracts with power generators even as the price of power on the spot market was coming down, partly because of the declining price of natural gas used to fuel many plants.
``It's more clear than ever that the long-term contracts are a bad deal,'' said Assemblyman Tony Strickland, R-Camarillo. ``The governor's really hurt the ratepayers for the next five or 10 years.''
The newly released bills highlight the volatility of California's energy market, where the price per megawatt hour ranged from $70 to $1,000. On any given day, the records show, the prices from seller to seller varied widely, with some of the highest prices being charged by public utilities and companies outside Texas.
On one day in February, for example, San Diego-based Sempra Energy was charging $165 per megawatt hour, the Eugene Water and Electric Board was charging nearly $500 and Duke Energy, a North Carolina company, was charging up to $575.
The state's daily spending peaked May 10 at $102.4 million for all power, including the spot market and contracted power.
The state began buying power in mid-January on behalf of the state's major utilities, which were unable to borrow money to buy power after amassing enormous debts for electricity.
San Jose-based Calpine Corp., which is building several new power plants around California including one in South San Jose, did only $29 million worth of business with the state in the first five months of the year, according to the figures.
The state began buying power in mid-January when Pacific Gas & Electric Co. and Southern California Edison Co. were on the ropes financially. PG&E later went into bankruptcy.
On Monday, state lawmakers took another shot at trying to cobble together a plan to rescue financially ailing Edison.
While most concede that a rescue plan Davis worked out with Edison will not win the necessary support in the Legislature, lawmakers have created several working groups to come up with alternatives.
Compromise plan
On Monday, state Sen. Byron Sher, D-Redwood City, unveiled the latest compromise proposal that seeks to protect average ratepayers and small businesses from further rate increases and forces everyone else to help finance the Edison bailout.
The ``shared pain'' proposal would force power producers, owed about $1 billion, to take a 30 percent ``haircut'' and agree to forgive about $300 million in Edison debts. Edison would be asked to swallow $1.2 billion -- about a third of its debt. And big users would be asked to pay off the remaining $2 billion in debts, possibly by paying higher prices for power.
In exchange, large companies would be given the opportunity to buy power on the open market, a system that would allow many of them to sign cheap energy deals.
Sher presented the proposal to Senate Democrats Monday afternoon, but it remains unclear how much support the framework will receive in the Legislature.

Contact Mark Gladstone at mgladstone@sjmercury.com  or (916) 325-4314.


John/Gia:

You asked that we attempt to evaluate our activities.  Working with TW, I've
valued this one.

The California Commission ruled that the "Hector Road" natural gas recent
point in California ought to be made a primary receipt point.  This would
have had the effect of TW losing access right to 200 MMcf/d of capacity at
SoCalGas' Needles receipt point.

Best case scenario:  Under SFV rates, loss to TW is commodity rates (wash)
and the fuel margin.  TW calculates the fuel margin to be $5.8MM/yr.

Bad case:  If shippers on TW try to make the case that TW is at fault for
losing the primary access rights, then TW is at risk for the demand component
of the contracts associated with the 200 MMcf/d.  TW calculates the demand
charges loss to be $16.5 MM/yr.

Worse case:  In addition to actual damages listed above, shippers face
performance penalties and other contractual damages (from their customers)
and they try to pass those costs on to TW.

I discussions with TW, we concluded that the most likely case fell between
"best" and "bad," somewhere in the $12-15MM/yr range.

TW believes that without the assistance of CA Gov't Affairs in the case, the
$12-15 MM/yr would have been lost.

Be happy to discuss with you further.

Best,
Jeff


Vince,

Here's Bob's bio.  It's pretty short, but I expanded his picture a bit to
compensate.  I also had to convert it from third person to first, so it's a
little "I" heavy.

Sam

--------------------
I joined the Pricing and Evaluation Technology Group in June, 2000.  I,m
currently working on pricing models for commodity options and time series
analysis to relate commodity and equity prices.

I have completed an M.S. in Financial Engineering at the University of
Michigan in April, 2000 and have also been an independent organization
development consultant for 15 years with extensive work in electric and gas
utilities.  Prior to that, I managed a methods development group for a
nuclear reactor manufacturer for 16 years.

From a few years back,  I,ve earned  a BS (Aero. Eng.) from Rensselaer
Polytechnic Institute, an MS (Nuclear Science) from Vanderbilt University and
a Ph.D. (Nuclear Engineering) from Rensselaer.

When away from Enron, my outside interests include yoga and grandchildren.
___________


FULL NAME:  Tori Denise Kuykendall
> > > WHAT'S ON YOUR MOUSE PAD?  University of Texas Longhorns!
> >  FAVORITE MAGAZINE: dont subscribe to any
> > > FAVORITE SMELL:  baking cookies
> > > FAVORITE SOUNDS: the birds outside in my backyard
WORST FEELING IN THE WORLD: when someone i care about is sick or troubled
> >
> >
> > > WHAT IS THE FIRST THING YOU THINK OF WHEN YOU WAKE
> >UP: do i really have to go to work today??????
> >
> > > ROLLER COASTER: SCARY OR EXCITING? exciting!  love em
> >
> > > HOW MANY RINGS BEFORE YOU ANSWER THE PHONE? however long it takes me to
look at the caller ID
> >
> > > FUTURE DAUGHTER'S NAME? Erin Rae -- only a month away -- unbelievable
> > > FUTURE SON'S NAME:  Cole Patrick -- thats my pick anyway
> >
> >  > CHOCOLATE OR VANILLA? chocolate
> >
> > > DO YOU LIKE TO DRIVE? much rather drive than ride
> >
> >  > DO YOU SLEEP WITH A STUFFED ANIMAL? nope but i do hold a pillow
> >
> > > STORMS: SCARY OR COOL? scary but cool
> >
> > > SEASON YOU LOVE THE MOST. fall -- in houston its definitely the best
> >
> > > WHAT TYPE WAS YOUR FIRST CAR?  a lovely ford tempo piece of crap
> >
> > > IF YOU COULD MEET ONE PERSON DEAD OR ALIVE WHO WOULD
> >IT BE? i'm not really enamored with famous people so thats a tough one
> > > WHAT IS YOUR ZODIAC SIGN? virgo
> > > WHO IS YOUR FAVORITE POET?  who cares
> >DO YOU EAT THE STEMS OF BROCCOLI?  yes
> > >
> THE WORST MOMENT OF YOUR LIFE:  being in the hospital for surgery
> >IF YOU WOULD HAVE ANY JOB YOU WANTED, WHAT WOULD IT
> >BE?  sports and activities developer for kids
> >
> >  > IF YOU COULD DYE YOUR HAIR ANY COLOR? red
> >
> >
> >  > HAVE YOU EVER SWAM NAKED? oh yeah
> >
> > > IS THE GLASS HALF EMPTY OR HALF FULL? half full
> >
> > > FAVORITE COLORS? green, purple
> >
> >  > WHAT IS YOUR FAVORITE SNAPPLE DRINK? none
> > > FAVORITE MOVIES?  Good Will Hunting, Field of Dreams, Erin Brockovich
> >
> >  > FAVORITE CARTOONS?  the flintstones, south park
> > > ONE PILLOW OR TWO? two -- three right now if you include the body
pillow >  > ARE YOU A LEFTY OR RIGHTY? righty
> >
> > > WHAT KIND OF CAR WOULD YOU LIKE TO HAVE? fine with mine actually --
lexus suv
> >DO YOU TYPE WITH YOUR FINGERS ON THE RIGHT KEYS?  nope - never learned
> >
> >
> > > FAVORITE FOOD: mexican and mashed potatoes
>
> HOW WOULD YOU LIKE TO DIE: old age -- in my sleep
> > > DO YOU BELIEVE IN GOD?  yes
> >
> > > DO YOU PRAY? yes - not every night though
> >
> > > WHAT'S UNDER YOUR BED? i think a baseball bat
> >
> > > WHAT IS YOUR FAVORITE NUMBER? 7
> >
> >  FAVORITE ICE-CREAM? hot fudge vanilla sundaes
> >  > FAVORITE SPORT TO WATCH? basketball
> > > FUNNIEST PERSON YOU KNOW: trevor vaughan
> > > WHAT DO YOU SEEK IN YOUR PARTNER? fun to be around, honest, motivated
> >  > HOW DO YOU SLEEP? usually on my stomach but not at 8 months pregnant
> > >
> WHAT WOULD YOU CHANGE OF YOURSELF? my short temper
> >
> >MOUNTAINS OR BEACH? mountains -- i dont tan
> >
> >  > DO YOU COLLECT SOMETHING?  not really
>
> >
> > > WHAT ARE YOU MOST SCARED OF? failure
> > > WHAT IS YOUR FAVORITE PERFUME?  cant wear traditional perfume so i like
bath & body works cucumber melon
> >
> > > ARE YOU ABSOLUTELY HAPPY?  yes>
> >
> > > SAY ONE NICE THING ABOUT THE PERSON WHO SENT THIS TO
> >YOU: rachel - you are my oldest and truest friend.  thanks for always
being there.
> > > PERSON YOU SENT THIS TO WHO IS MOST LIKELY TO
> >RESPOND:
> WHO IS LEAST LIKELY TO RESPOND:
> >
> >  > DID YOU SAY THE WHOLE TRUTH? yes
> >
> >
> >


>                                           AGENT AA/TR BOOKING REF YMFYYA
>
>                                           TAYLOR/MARK E
>                                           EB 3889
>
>   ENRON CORP
>
>
>
>
>
>   DATE:  AUG 21 2001
>
> SERVICE               DATE  FROM           TO             DEPART  ARRIVE
>
> CONTINENTAL AIRLINES  26OCT HOUSTON TX     FT LAUDERDA FL 705P    1035P
> CO 1748    V          FRI   G.BUSH INTERCO FLL INTL
>                             TERMINAL C     TERMINAL 1
>                             SNACK                         NON STOP
>                             RESERVATION CONFIRMED         2:30 DURATION
>                   AIRCRAFT: BOEING 737-800
>                             SEAT 06C NO SMOKING CONFIRMED TAYLOR/MARKE(ID
>
> CONTINENTAL AIRLINES  28OCT FT LAUDERDA FL HOUSTON TX     555P    733P
> CO 249     B          SUN   FLL INTL       G.BUSH INTERCO
>                             TERMINAL 1     TERMINAL C
>                             SNACK                         NON STOP
>                             RESERVATION CONFIRMED         2:38 DURATION
>                   AIRCRAFT: BOEING 737-900
>
> MISCELLANEOUS         25FEB HOUSTON TX
>                       MON   ** THANK YOU FOR USING THE TAP **
>
> RESERVATION NUMBER(S)  CO/VF92WS
>
> TAYLOR/MARKE  S0C0413R1056
>
> CO  FREQUENT FLYER COSC471253
> ASSISTANT: HOLLY KEISER 713-345-7893
> *******************************************
> INTL TVLRS: CARRY SOS WALLET CARD W/ENRON ASSISTANCE INFO
> CALL SOS MEDICAL EMERGENCY:IN U.S 800 523-6586
> CALL SOS MEDICAL EMERGENCY:INTL 215 245-4707 (COLLECT)
> *********************************************
> HIS IS A NON-REFUNDABLE FARE THAT REQUIRES
> TRAVEL ON THESE SPECIFIC DATES AND FLIGHTS.
> ANY CHANGES WILL RESULT IN A PENALTY AND/OR
> ADDITIONAL COLLECTION.
> FARES CHANGE FREQUENTLY. WE WILL HAPPILY RE-EVALUATE
> YOUR FARE UPON REQUEST.
> *****************************************************
> THE FARE IS $263.32 NON- REFUNDABLE
> ALL FARES ARE SUBJECT TO CHANGE UNTIL TICKETED/PURCHASED
>
>
>
>
> Teresa
>


I'm putting the freezing one on my webpage with a few happy hour photo's as
soon as I get off my lazy butt.


Vince-

1. We can detect "hoarding" of pipeline capacity as an elevated basis against
the actual inflow.

2. We can detect "market power" by dissociating the seller from the buyer,
distinguishing between the physical "cost" in gas to run the generators and
the transmission cost in dollars, i.e. the basis.

3. (As you noted) We can detect "storage" as the difference between inflow
and consumption.

It appears to me there are two time series needed for a straightforward model
of gas prices: flow rates at interconnects (from telemetry) and spot-market
prices. There is an elevated basis reflecting pipeline companies monopolizing
capacity, as well as hoarding of capacity by contracts. The dynamics of gas
prices reflect consumption demand changes due to changes in expectations for
the weather, as well as their impact on two highly strategic behaviors:
hoarding of pipeline capacity and storage of gas.  We can "calibrate" the
price elasticity of demands for consumption and storage, and the price
elasticities of demand for transmission, as well as the extent of hoarding,
from the two sets of numbers mentioned: flows and prices.  What the basis
trader needs to understand are the incentives, and disincentives, for storage
and capacity-hoarding, in terms of the calibrated price-elasticities, and
each of these are as-if exotic call options at the consumption hub.  Finally,
flows are "explained" by the model, and can be imputed from prices if
necessary, resulting in a purely stochastic model of the basis in terms of
the weather.

I believe the problem is quite tractable, and I would like to proceed with a
model.

Clayton


Chris--The attached file contains the daily changes for 3/27 and 3/28 in the
volumes of gas that we need by market area.  The daily changes are relative to
what we requested on a First-of-the month basis, which values appear in Col.
DD.   You can just open this file and print it out to see the magnitude of the
changes by market area or zone.  We'll be calling regarding pricing.

Doug Kinney
Ph:  703-561-6339
Fax:  703-561-7317

 - 03-27-00daily Chg AM.xls


pls grab me when I come in and make me do this.  thanks df
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 07/14/2000
08:54 AM ---------------------------

	From:  Joe Sutton                           07/13/2000 06:48 PM

Sent by: Enron Announcements
To: VPs and MDs
cc:

Subject: Updating your profile information in the GIS system

As the Global VP/MD mid-year PRC draws closer, I want to take the opportunity
to stress to you the importance of  updating your profile information in the
GIS system.  Details on your current responsibilities, employment history,
skills and education should have been updated by 7 July 2000.   For those of
you that have not opened your profile in GIS, I urge you to do so as soon as
possible to ensure that your profiles are current and complete.

GIS is accessible via the HRWEB home page on the intranet.  You may go to
hrweb.enron.com and look for the GIS link, or just type eglobal.enron.com on
the command line of the browser.

Your  timely response to this request is greatly appreciated.

Thank you,


1.  Per my discussion last week with David Minns, I sent him a spreadsheet so
he could scroll across the product list and see the full range of products
EnronOnline offers so he could determine whether an Australian based
counterparty will have any legal problems entering into any of the
EnronOnline products.  It was my understanding that he had not seen a
comprehensive list off all the products we offer.

2.  However, on a going forward basis, David Minns or someone in Legal will
need to see the daily spreadsheets reflecting any new Australian based
counterparties because every new counterparty requesting a password needs a
Credit and a Legal signoff for trading every products we offer, whether
physical, financial, power, gas, liquids, weather, p&p, US, European or other
country based product, etc..  Houston Legal does it every day for every new
Houston Credit based counterparty, London Legal does it every day for every
new London Credit based counterparty and Australian Legal will need to do the
same.  If some other system will be in place in Australia, David Minns will
need to discuss that with Mark Taylor and David Forster.


---------------------- Forwarded by Eric Bass/HOU/ECT on 12/14/99 03:04 PM
---------------------------

Brian Hoskins
12/14/99 02:57 PM
To: Dick Jenkins/HOU/ECT@ECT, Eric Bass/HOU/ECT@ECT
cc:
Subject: Fw: FW: Playing catch with Dad

---------------------- Forwarded by Brian Hoskins/HOU/ECT on 12/14/99 02:57
PM ---------------------------

	Enron North America Corp.

	From:  Charles Ray                           12/14/99 12:59 PM

To: "Robertson, William (CICG Analyst)" <WKRobertson@exchange.ml.com>,
gentry.beach@msdw.com, "Cook, Stephen (HOU)" <stephenhou.cook@csfb.com>, Chip
Cunningham/DEN/ECT@Enron, DCrosswell@aol.com, Brendan Fikes
<b.fikes@mail.utexas.edu>, Brian Hoskins/HOU/ECT@ECT, abhull@hotmail.com,
justin@calltexashome.com, zacmccarroll@hotmail.com, SPON@dynegy.com,
"Harbison, Matt" <Matt.Harbison@mtv.com>, "Ray, Ginger C."
<Ginger.C.Ray@pfizer.com>, Adam Atwood <aaa@mcmann-tate.com>, "Alan Richard
Taylor Jr." <alan@tonducorp.com>, Brian McMackin <bmcmackin@co.theuzone.com>,
"David J. Coon" <davidjcoon@yahoo.com>, "Jon Reynolds" <jmr52@airmail.net>,
Philip Sutton <philipsutton@yahoo.com>
cc:
Subject: Fw: FW: Playing catch with Dad

---------------------- Forwarded by Charles Ray/HOU/ECT on 12/14/99 12:58 PM
---------------------------

"Norman Scott" <scotland@texas.net> on 12/14/99 12:35:53 PM
Please respond to "Norman Scott" <scotland@texas.net>
To: "Trent Dalton" <tdalton@picorporation.com>, "Ty Henderson"
<sticklet@texas.net>, "Victor McClure" <vmcclure@teleteam.net>, "Tommy
Winburn" <tomwin88@texas.net>, "Terry McDonald" <mcdonald@primeprinting.com>,
"Scott Colyer" <scottcolyer@uswest.net>, "Rob Addison"
<rob_addison@hotmail.com>, "Rick Palermo" <rpalermo@usdialtone.com>, "Richard
Gordy" <richard_k_gordy@amat.com>, "Randy Pegg"
<sterlingresource@uswest.net>, "Peter Leneweaver" <pjl1453@aol.com>, "Mike
Kugler" <mkugler@firstfinancial.net>, "Michelle Thompson"
<Michelle.Thompson@BNAmail.com>, "Matt Tielkemeijer" <tink1@texas.net>, "Mark
Butler" <captmdb@aol.com>, "Lance Carroll" <lcarroll@allstar.com>, "Kyle
Cowand" <kyle@thrifty.net>, "Kyle Campbell" <kcampbell@austin.rr.com>,
"Justin King" <rk44529@swt.edu>, "John Spencer"
<John.Spencer@southernunionco.com>, "Joe Angerame" <angerame@texas.net>,
"Jeff Scott" <scottja@flash.net>, "Hansford Ray" <hray2@aol.com>, "Gabe
Collard" <JGCollard@aol.com>, "Gary Hoffman" <ghoffman@sperry-sun.com>,
"Darron Gross" <darron_gross@shi.com>, "David Bentley"
<david_bentley@nai.com>, "Curtis Hagar" <Curtis@SUNBELT-SUNLINE.com>, Charles
Ray/HOU/ECT@ECT, "Bob Dorsett" <Robert_Dorsett@progressive.com>, "Bev and
Jack Scott" <scottlnd@texas.net>
cc:
Subject: Fw: FW: Playing catch with Dad

Norman C. Scott II
       "Scotty"

-----Original Message-----
From: robert tokarczyk <robert@greatoakmortgage.com>
To: SLOPPY MO Khollman <mokhollman@email.msn.com>; Scotty Scott
<scotland@texas.net>; Magic Moriarity <bryan.moriarity@fnc.fujitsu.com>;
Larry Scarry <lseegar@flash.net>; KID 2 <faqu2@mail.wowmail.com>; JERROD
<JCSCHULICK@AOL.COM>; Hadji <jtokarczyk@home.com>; Gordon Keith
<Gordon@coollink.net>; Donnie Landers <don_landers@bmc.com>; DIAMOND DAVE
GRAY <dgray57736@AOL.COM>; David Crews <David.Crews@compaq.com>; CHUNGEE
<CDAVIS@IDOT.COM>; Black Bart The Drunk Clown <brichson@gateway.net>; Bill
Robb <bill@IVCSR.COM>; Big John Ives <TigerIves@AOL.COM>; BAD GUY
<BADGUY@MINDSPRING.COM>
Date: Tuesday, December 14, 1999 12:02 PM
Subject: Fw: FW: Great video file

-----Original Message-----
From: Shantel Leblanc <shantel.leblanc@worldnet.att.net>
To: WILLIAM TODD <coonassb@ametro.net>; Tim Gilliland <tim.gilliland@st.com>;
Stevie <stephen.meier@worldnet.att.net>; LKross1020@aol.com
<LKross1020@aol.com>; Linda Weissman <wyukon@msn.com>; Lane Wilkins
<lane_wilkins@email.mobil.com>; Courtney LeBlanc <court@ev1.net>; Clay
Haggard <byrd1@worldnet.att.net>; Boz <Robert@greatoakmortgage.com>
Date: Tuesday, December 14, 1999 11:35 AM
Subject: Fw: FW: Great video file

 - att1.htm
 - ATT00055.htm
 - ATT00057.mpeg


missing deals for bob:

sells williams
94.00
50 mw
Q2
pv
peak

buys williams
90.00
50 mw
Q2
sp15
peak

missing deals for matt:

sells williams
94.00
25 mw
Q2
pv
peak

buys williams
90.00
25 mw
Q2
sp15
peak


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