---------------------- 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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or you may call us at 303-797-0200 and give us the
information over the phone.

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
options. It is possible at this or some subsequent date, the
editor and staff of The Option Investor Newsletter may own,
buy or sell securities presented. All investors should consult
a qualified professional before trading in any security. The
information provided has been obtained from sources deemed
reliable but is not guaranteed as to accuracy or completeness.
The newsletter staff makes every effort to provide timely
information to its subscribers but cannot guarantee specific
delivery times due to factors beyond our control.


Dear Mr Mark E  Haedicke

We bring you the last edition of Asia Power 2002's trilogy emails, weekly updates featuring the highlight, people and issues to expect at Asia's largest, distinguished and most established senior level power forum.

After exploring the key regulators and financiers present at the conference, we draw our attention to the leading power players around the region. Asia Power 2002 features a power-packed CEO Panel entitled "Asia's move towards a competitive electricity market" comprising recognised leaders from Singapore Power International, CLP Holdings, EGAT, PSALM Corporation in Philippines and Tenaga Nasional.

In addition, join the following respected top-tier professionals in the power arena at Asia Power 2002 as they discuss IPP risks, efforts to revive investor confidence, creation of a borderless electricity industry and future energy requirements in Asia:

- Jesus Francisco, President, Meralco, Philippines
- Robert Edgell, President, Edison Mission Energy Asia, Singapore
- Eddie Widiono Suwondo, President Director, PT PLN, Indonesia
- Nasser Munjee, MD & CEO, IDFC, India
- Dr Guillermo Balce, Executive Director, ASEAN Centre for Energy, Indonesia
- Yoshihiro Sakamoto, President, The Institute of Energy Economics, Japan

For the full programme, visit us at http://www.utiliconforum.com/asiapower_2002/ Sign up before 31 October 2001 to qualify for a 10% discount off registration fees! To register, mailto: suzanne.voo@terrapinn.com.

We look forward to seeing you in February next year!

Best regards

Suzanne Voo
Conference Manager
Asia Power 2002

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?
If you caught last night,s debate, then you saw first hand why Governor Bush
is moving up in the polls.? There,s momentum building in his favor, but this
election will be decided by strong Bush voter turnout in key battleground
states.

That,s why Governor Bush needs your help.? Some of you may have already been
contacted to join the Bush &SWAT8 team and asked to travel to key states in
the coming weeks.

If you have been asked ) great ) please let me know if you can travel or are
already committed to do so.? If you haven,t been contacted, I hope you,ll
consider joining me as we work to get voters in other states energized about
the Governor,s campaign and get voters out to the polls during early voting
and on Election Day.

If you are interested and able to travel, please contact me as soon as
possible.? I need to get your name and contact information to the Bush for
President volunteer coordinator this week.

Drop me an email at tgarza@onr.com with the following information or fax back
the form below to me at 512/474-0825.? Please let me know as soon as possible
if you,ll be able to help the campaign in these final few, critical weeks.

Regards,
Tony
?

Yes, Tony, I,ll help elect the next President and am willing to travel.? Here,
s my information:

NAME:

ADDRESS:

PHONE:

FAX:

EMAIL:

DATES AVAILABLE TO TRAVEL:


Mr. Fleming:

Thanks so much for the helpful letter on membership and general information. Your letter indicated that I should make application through the Membership Committee, who would provide me with an application. You copied Cmde. Roth on the letter so I will contact him to request an application or schedule a meeting. (I have no contact information for him other than through the PYC, is that appropriate?)

I found a potential slip at Great Cove Boat Club and was wondering if you had heard of this marina and if other members used this facility.

Thanks again for getting back to me.

Richard (Rick) Buy

P.S. I heard on the news one of the pilots was from Portsmouth. So tragic. I'm sure people there are as devastated as they are here.


Pierre-Philippe,

Thanks for your message. I shall be glad to make a presentation in early
November. I understand the presentation are on Fridays and November the 3rd
would be the best date for me.

If you prefer November the 10th, we have to wait a few more days with the
decision. We have a management conference every year in San Antonio and it
will be held either in the 2nd or the 3rd week of November. I shall know in a
few days. The same goes for November 9, assuming it was not a mistake (it's
Thursday).

I shall be free for dinner on the day of the conference. Thanks for the
invitation.

 Vince


When do you leave next week?

Kay


What's the length of your boat?  Does it have a cover?

D


Mary:

Remember, this is the swap that you finally decided to go ahead and terminate
yourself.  There was much confusion about how many S.A. swaps actually
exsited (only one) and after sorting through the mess, when I asked if you
had estabished a Raptor "format for termination", you decided to do the
drafting.  Let me know if there is a problem.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 05/14/2001 01:31 PM -----

	Mary Cook
	05/11/2001 11:38 AM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc: Maricela Trevino/Enron@EnronXGate, Gordon McKillop/Enron@EnronXGate,
Joel Ephross/Enron@EnronXGate
		 Subject: Raptor and the South American Swap

Maricela has requested a copy of the termination notice for the referenced
swap.  I advised her that you would have done the document in relation to the
swap (of which I think there was only one).  I cannot remember if it was ever
terminated.  Can you coordinate this matter with Maricela.  I am covering the
rest of the Raptor requests.

Cordially,
Mary Cook
Enron North America Corp.
1400 Smith, 38th Floor, Legal
Houston, Texas   77002-7361
(713) 345-7732 (phone)
(713) 646-3490 (fax)
mary.cook@enron.com


Dear All,

I would like to make myself available for some meetings at the Oslo office
during my visit on Friday pm, Monday and Tuesday.  I believe Bjarne will be
available on Tuesday, if not Monday, and so would like to arrange the Trading
and Origination meetings for Tuesday (so that he can attend) and maybe go
through the EnergyDesk issues on Monday.  I will also give a presentation,
probably on Monday.

TRADING: OPTIONS & VOLATILITY CURVES
It would be useful to meet with the traders along with Bjarne's team to help
us improve our understanding of the valuation/hedging issues encountered in
trading options (both European and Asian).  I hope to discuss the vol curves
and will bring the example of the recent work done for the UK electricity
desk where a monthly volatility curve generator and initial half-hourly
forward volatility curve have been developed.

ORIGINATION:
Any issues arising in complex deals (e.g. dry reservoir, user-time contracts)
etc. perhaps with Didrik.

ENERGYDESK.COM
To support the on-going effort to ensure the accuracy of the EnergyDesk.com
systems, I hope to help James Stephen nail-down the reasons for some of the
discrepancies between the EnergyDesk.com valuation and the Oslo book (for
this I hope to meet with Trond).

EXOTIC OPTIONS:
If everything runs smoothly, I plan to roll-out the new Asian model which
should also help us in improving our electricity volatility curve.

I will be in the Oslo office from Friday afternoon, and available all day
Monday and Tuesday.  I will be staying at the Grand Hotel and probably
contactable on my mobile: 07747 86813.

Look forward to meeting you soon!

Regards,

Anjam
x35383

P.S. I will be contactable on my mobile for any urgent queries from London
customers: 07747 868131, or reachable through Catherine/Maret (x2570)


Maria, FYI.  As for our draft language (ETS), we won't have that together until next week, and I will send it to you when it's ready.  It may be a big help, though, to also listen in on the INGAA call.
- Nancy

 -----Original Message-----
From: 	Tangela Crump <TCrump@INGAA.org>@ENRON
Sent:	Wednesday, January 16, 2002 3:11 PM
To:	Bill Griffith (E-mail); Dale Davis (E-mail); Eugene Fava (E-mail); Iris G. King (E-mail); Kurt Link (E-mail); Mark Gracey (E-mail); Michael Hansen (E-mail); Paul Love (E-mail); Richard J. Kruse (E-mail); Sandra Barnett (E-mail); Scott L. Hansen (E-mail); Shelley A. Corman (E-mail); Theresa Hess (E-mail); William W. Grygar (E-mail); Anna V. Cochrane (E-mail); Anne Bomar; Claire Burum (E-mail); Curtis Moffatt Esq. (E-mail); Denise Simpson (E-mail); Janice Alperin (E-mail); Joan Dreskin (E-mail); Judy Neason (E-mail); Keith A. Tiggelaar (E-mail); Marsha Palazzi (E-mail); Marshia M. Younglund (E-mail); Mary Brosnan; Mary Vasile; Michael D. Moore (E-mail); Michael E. McMahon (E-mail); Bagot, Nancy; Penny Ludwig; Sharon J. Royka (E-mail); Bill Wible; Claire Burum; Cynthia Albert; Daniel Frutchey; Denise Hamsher; Joan Dreskin; Hartsoe, Joe; Kaoru Uchida; Keith Tiggelaar; Larry Thomas; Lenard Wright; Robert Weidner; Rosemary Leitz; Steven Kline; Steven Tillman; Yusuke Hidaka
Subject:	GISB Conference call

Conference Call

When:  Thursday, January 17, 2002
Time:  2:00 (est)
Call-in:  1+630-395-0035
Pass code:  INGAA

Re:  GISB NOPR (RM96-1-020) (97 FERC ? 61, 316)

          The Commission issued a NOPR proposing to incorporate by reference the most recent version of the GISB Standards (version 1.5) and to eliminate certain out dated regulations dealing with Electronic Bulletin Boards.

          The Commission requested comments on whether it should adopt the one-hour prior notice requirement in GISB Standard 5.3.2, as well as other issues related to title transfer tracking, imbalance netting and trading, etc.

          Comments are due February 1, 2002.


Mark:  I am totally confused.  WHO is addressing CFTC issues for MG London,
Inc.?  What is Alan's involvement?  SS
----- Forwarded by Sara Shackleton/HOU/ECT on 08/14/2000 08:12 AM -----

	Justin Boyd
	08/14/2000 01:43 AM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc:
		 Subject: MG

Sara,

Thanks for your message.  Perhaps we can speak over the next day or so.

As far as MG's business is concerned from NYC and the US, the legal support
will be managed from Houston (Alan Aronowitz and Marcus Nettelton)  - I
believe they will shortly be visiting NYC.

I would very much appreciate your support re: other legal issues, CFTC, etc

Thanks.
Justin


---------------------- Forwarded by John Arnold/HOU/ECT on 09/25/2000 02:18
PM ---------------------------
To: John Arnold/HOU/ECT@ECT, Phillip K Allen/HOU/ECT@ECT
cc: Chris H Foster/HOU/ECT@ECT, Greg Wolfe/HOU/ECT@ECT
Subject: Re: Electricity and Natural Gas hedging

I suggest that we initially cover this person out of the Portland office.
One of our middle marketers can easily get up to meet with this guy.
Depending on the magnitude and complexity o their power and gas needs are we
will then pull in the appropriate people.  Phillip and John, let me know if
this works for you.

Eric Thode@ENRON
09/22/2000 07:28 AM
To: John Arnold/HOU/ECT@ECT, Tim Belden/HOU/ECT@ECT
cc:
Subject: Electricity and Natural Gas hedging

John and Tim --

I believe this one is for both of you.  Thanks.

Eric

---------------------- Forwarded by Eric Thode/Corp/Enron on 09/22/2000 09:29
AM ---------------------------

Lisa.M.Feener@enron.com on 09/21/2000 11:31:32 AM
To: eric.thode@enron.com
cc:

Subject: Electricity hedging

---------------------- Forwarded by Lisa M Feener/ENRON_DEVELOPMENT on
09/21/2000 11:30 AM ---------------------------

"Holbrook, Doug" <holbrook.d@portseattle.org> on 09/21/2000 10:26:32 AM

To:   "'lfeener@enron.com'" <lfeener@enron.com>
cc:
Subject:  Electricity hedging

I work for the Airport Authority for Seattle-Tacoma International Airport
in
Seattle, Washington and I am responsible for Managing the Utilities. We are
interested in hedging our Electricity and Natural Gas supplies. Can I get
some information on Enron's services in this area?

Douglas C. Holbrook
Manager, Business & Utilities Management
Port of Seattle
Seattle-Tacoma International Airport
PO Box 68727
Seattle, WA. 98168
Phone: 206-433-4600
Fax: 206-988-5515
holbrook.d@portseattle.org


Thought you might want to see this.

---------------------- Forwarded by Edward Terry/HOU/ECT on 02/21/2001 09:19
AM ---------------------------
From: Matt Pena/ENRON@enronXgate on 02/21/2001 09:11 AM
To: Edward Terry/HOU/ECT@ECT, George F Smith/HOU/ECT@ECT, Patti
Sullivan/HOU/ECT@ECT, Katherine L Kelly/HOU/ECT@ECT, Robert
Superty/HOU/ECT@ECT, Victor Lamadrid/HOU/ECT@ECT, Beverly Beaty/HOU/ECT@ECT,
Donna Greif/HOU/ECT@ECT, Richard Pinion/HOU/ECT@ECT
cc: Chris Schomer/ENRON@enronXgate, Brian Ripley/ENRON@enronXgate, Bob M
Hall/NA/Enron@Enron, Bryce Baxter/HOU/ECT@ECT
Subject: EOL Deal Ids In Path Manager

As you're aware, we're having to bridge Houston Street ids into Unify from
Sitara.

We are being asked, as a requirement, to not display the EOL id on statements
that are identified as "Broker EOL trade" deals originating from EOL.  We
have two options to accomodate this requirement:

Option 1 is to have the modify the bridge code to not bridge over the EOL
deal id if the deal is a "Broker EOL trade"  deal.  One of the drawbacks of
this option is that you won't be able to referenence the EOL id on the Path
Manager for these related deals.  All other deals will have the EOL deal id,
if applicable.  The EOL id would not show up on the statements because it
wouldn't be populated.

Option 2 is to modify several areas of code in the Settlements area which may
be more time consuming.  The obvious code change would be in the statement
generation area as well as other report type information.

Option 2 allows you the greatest flexibility while Option 1 may be quicker to
implement.

Please pass this along to others in your group and get feedback.  Please
share your thoughts....
I've attached an email explaining the Broker EOL trades.  This is not to be
confused with Broker deals done at a given point with not transportation.
These will continue to come across as you'd normally expect.

Any questions, please ask...

Thanks!


---------------------- Forwarded by Kevin Kindall/Corp/Enron on 03/07/2001
08:58 AM ---------------------------

"Wander" <wander@ibl.bm> on 03/06/2001 08:09:42 PM
To: <Kevin.Kindall@enron.com>
cc:

Subject: Phone Interview 3/5

Dear Mr. Kindall,

I just wanted to let you know that I appreciated the time you gave me on
Monday, and that I am very interested in pursuing a career at Enron. I feel
that my risk management and Treasury experience would prove to be valuable
at your firm, and I would very much like to continue discussions with you if
a suitable position becomes open.

Thanks again for the taking the time to chat with me, and I look forward to
hearing from you soon.

Sincerely,

Bill Anderson


My Location is EB3212c - can you send it to me.

Thanks.

Michael Simmons
10/30/2000 11:50 AM
To: Stephen Schwarzbach/Corp/Enron@Enron, Eric Bass/HOU/ECT@ECT, Luis
Mena/NA/Enron@Enron, Paul J Broderick/HOU/ECT@ECT, Sarah Goodpastor/Enron
Communications@Enron Communications
cc:
Subject: UT & atm flag football

I've received the fund raising envelopes for the flag football tournament.
I need everyone to pick these envelopes and begin collecting for UT.

I'm at 2918b or you can send me your location and I will  try to use the
interoffice mail.

Alternatively, you can just solicit on your own without the envelope (which
makes it more official).   Keep in mind that contributions will be matched by
Enron and make checks payable to the University of Texas at Austin.  Last
year we donated about $30 K to A&M Bonfire memorial scholarship efforts.
Money collected this year will goto the general scholarship fund at UT.

Each team is expected to raise $2000  and we have less than 20 days left, so
do your part.

---

Also, if anyone is interested in practicing this weekend or next, let me know
and I will try to arrange it.  Webb's team is not practicing.

---

Finally, we're still short 2 guy players.

-Mike  ext. 37842


Susan and Samantha:
I thought that both of you should have this.  This is the new draft of
Deutsche Bank schedules which I plan to review.  I have forwarded this to Rod
Nelson.
----- Forwarded by Carol St Clair/HOU/ECT on 07/11/2000 03:33 PM -----

	steven.kessler@db.com
	07/11/2000 02:10 PM

		 To: Carol.St.Clair@enron.com
		 cc:
		 Subject: DB/Enron ISDA

Hi Carol:

Enclosed is latest draft.  Please note that I changed DB's Threshold at A+
to bring it into line with Enron's rating.  I also added a sweep-in clause
to deal with the BT Transactions (Section 18).  Please let me know if those
provisions are acceptable.  Subject to internal DB approvals, I think the
other substantive points still open are (i) a Moody's rating for the MAC
clause, (ii) the demand section in the Guaranty, and (iii) determining the
L/C provisions and mechanics.  Please let me know who your replacement on
this matter will be and, if we don't speak before you leave, good luck and
congratulations.

Regards,

Steve

---------------------- Forwarded by Steven Kessler on 07/11/2000 03:09 PM
---------------------------

07/11/2000 01:49 PM
Kelly Habenicht
Kelly Habenicht
Kelly Habenicht
07/11/2000 01:49 PM
07/11/2000 01:49 PM

To:   Steven Kessler@Bankers_Trust
cc:
Subject:

(See attached file: ENRON SCHEDULE (NEW VERSION).DOC)(See attached file:
ENRON PARAGRAPH 13.DOC)

 - ENRON SCHEDULE (NEW VERSION).DOC
 - ENRON PARAGRAPH 13.DOC


Attached please find the translated news clips from Bolivia (February 29).


The following deal has been changed once more. Here are the details:

576468
West Services buys from APX
NP-15
Off Peak - 1.8 MW @ $140
     10.2 MW @ $150
TOTAL MWH = 96

(572069 stays 12 MW @ $150)

Please call me with questions.

Thanks,
Kate
503-464-7486 or 3823

	From:  Chris H Foster                           04/10/2001 07:52 AM

To: Kate Symes/PDX/ECT@ECT
cc:

Subject: Deal #576468.1 & 572069.1 (4/6/2001 & 4/7/2001)

Kate:

Can you please modify that deal that you made the price $140 yesterday to
make it for the 6th only?  The 7th is all at $150.

Thanks

C
---------------------- Forwarded by Chris H Foster/HOU/ECT on 04/10/2001
09:58 AM ---------------------------

Audrey Cook
04/10/2001 07:51 AM
To: Chris H Foster/HOU/ECT@ECT
cc:
Subject: Deal #576468.1 & 572069.1 (4/6/2001 & 4/7/2001)

Chris,
Good morning!  Hey, one thing I probably did not clarify to you yesterday on
was that when the new deal ticket was set up for the $140 price strip (Deal
#576468.1), the deal should only be in for (4/6/2001) according to APX's
statement (not including 4/7/2001).  Therefore, the entire offpeak for your
deal would be booked on Deal #572069.1 for the $150 price for 4/7/2001.  Let
me know if you have any questions.  Thanks.
ajc

---------------------- Forwarded by Audrey Cook/HOU/ECT on 04/10/2001 09:44
AM ---------------------------

Audrey Cook
04/06/2001 01:27 PM
To: Chris H Foster/HOU/ECT@ECT
cc:
Subject: APX - 4/6/2001

Chris,
One more quick thing on 4/6/2001- APX is showing 2 different prices for
offpeak ($140 & $150 - different MW per strip).  EPMI is showing $150 @ 12/MW
per offpeak hours.  This difference amounts to a $144 difference (APX has
lower invoice).  Can you verify?  Everything else is fine....talk to you next
week.  Have a good weekend.
ajc


Fran Mays is the HR contact person x37211


Do I need to do anything?

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 05/14/2001 10:57 AM -----

	Chris H Foster/ENRON@enronXgate
	05/08/2001 08:26 AM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc: Melissa Ann Murphy/HOU/ECT@ECT
		 Subject:

Sara:

I received a call from Mega today.  That financial gas/power deal could come
together today.  Attached is the draft confirm you prepared.  Let me know
ASAP if you have any "issues" with closing this deal pursuant to the language
you prepared.  I will contact you immediately if it closes.

Thanks!

Chris


Can you make me the Administrator for these sub users?

From:	Stephanie Sever/ENRON@enronXgate on 05/08/2001 09:30 AM
To:	Scott Neal/HOU/ECT@ECT
cc:
Subject:	EnronOnline - ENA-IM-Market East Book

Scott,

Dick Jenkins was the Administrative user for the above mentioned book.  He has been inactivated but there are still active sub-users.  Would you like to designate a new administrative user for this book?

Thank you,
Stephanie x33465


Ted tells me you guys have already taken action on this which greatly
relieves me. I did not want this procrastinated on. I have a meeting
scheduled with Rick Causey and will get up to speed on what exactly what has
transpired prior to that meeting. Thanks for giving this your immediate
attention. Rick


AGA for 2/16/01 is -81

Website information:
http://gasfundy.corp.enron.com/gas/framework/default.asp
Drop down Box to "Storage"
In-house Analysis
My files are the last three files.

When the dialog box asks to upadate links click "NO".


John,

The code is revised. Please compare 1098075 with 1098076(with exchange
options vol skew added)
Please call Jeremy for moving this change into produtions. I'll be off this
Friday and next Monday.

Thanks!

Dave
ext. 5-3853


Dear Ken,
 I have been told that you will not have time to meet with me, prior to Mr
Fox dinner in New York.
I have to be in N.Y., anyhow, so let me know if you feel like having a night
cap, after your dinner.

 Here is some relevant information regarding the participants at the dinner
and their interests in Mexico.

 Best regards, jaime____

 - Alatorre.doc


Start Date: 4/15/01; HourAhead hour: 17;  No ancillary schedules awarded.
Variances detected.
Variances detected in Energy Import/Export schedule.
Variances detected in Load schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001041517.txt

---- Energy Import/Export Schedule ----
$$$ Variance found in table tblINTCHG_IMPEXP.
     Details: (Hour: 17 / Preferred:  12.00 / Final:  11.98)
  TRANS_TYPE: FINAL
  SC_ID: ECTRT
  MKT_TYPE: 2
  TRANS_DATE: 4/15/01
  TIE_POINT: PVERDE_5_DEVERS
  INTERCHG_ID: EPMI_CISO_LUCKY
  ENGY_TYPE: WHEEL

---- Load Schedule ----
$$$ Variance found in table tblLoads.
     Details: (Hour: 17 / Preferred: 111.89 / Final: 111.89)
  TRANS_TYPE: FINAL
  LOAD_ID: SDG1
  MKT_TYPE: 2
  TRANS_DATE: 4/15/01
  SC_ID: EPMI


all we need to do is lose $2MM of VaR - it can't be that difficult

 -----Original Message-----
From: 	Hayden, Frank
Sent:	Friday, November 09, 2001 9:50 AM
To:	Port, David; Lavorato, John
Subject:	VAR limit violation

I spoke with Arnold regarding limit violation and he understood issue.  I spoke with Presto and his response was that his desk is within his limits and he didn't see need to reduce risk.  I await direction.

Frank


Start Date: 4/14/01; HourAhead hour: 14;  No ancillary schedules awarded.
Variances detected.
Variances detected in Energy Import/Export schedule.
Variances detected in SC Trades schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001041414.txt

---- Energy Import/Export Schedule ----
$$$ Variance found in table tblINTCHG_IMPEXP.
     Details: (Hour: 14 / Preferred:  12.00 / Final:  11.98)
  TRANS_TYPE: FINAL
  SC_ID: ECTRT
  MKT_TYPE: 2
  TRANS_DATE: 4/14/01
  TIE_POINT: PVERDE_5_DEVERS
  INTERCHG_ID: EPMI_CISO_SPP
  ENGY_TYPE: WHEEL

---- SC Trades Schedule ----
$$$ Variance found in table tblInt_Interchange.
     Details: (Hour: 14 / Preferred: -125.00 / Final: -124.97)
  TRANS_TYPE: FINAL
  SC_ID: EPMI
  MKT_TYPE: 2
  TRANS_DATE: 4/14/01
  TRADING_SC: SETC
  PNT_OF_INTRC: NP15
  SCHED_TYPE: ENGY
  PURCH_SALE: 1
  DEAL_NO: 1
$$$ Variance found in table tblInt_Interchange.
     Details: (Hour: 14 / Preferred:  25.00 / Final:  24.92)
  TRANS_TYPE: FINAL
  SC_ID: EPMI
  MKT_TYPE: 2
  TRANS_DATE: 4/14/01
  TRADING_SC: PGAE
  PNT_OF_INTRC: NP15
  SCHED_TYPE: ENGY
  PURCH_SALE: 2
  DEAL_NO: 1
$$$ Variance found in table tblInt_Interchange.
     Details: (Hour: 14 / Preferred: -60.00 / Final: -59.98)
  TRANS_TYPE: FINAL
  SC_ID: EPMI
  MKT_TYPE: 2
  TRANS_DATE: 4/14/01
  TRADING_SC: NCPA
  PNT_OF_INTRC: NP15
  SCHED_TYPE: ENGY
  PURCH_SALE: 1
  DEAL_NO: 1


Dear Leslie:  The changes are fine by me.  In fact, I like them so much,
I'll now use this as our standard NDA. Do I owe you legal fees ;) ??

Pls send me a fax number and address so I can fwd signed fax copy and then
two fair copies via post.

/g

> -----Original Message-----
> From: Leslie Hansen [mailto:Leslie.Hansen@enron.com]
> Sent: Wednesday, August 02, 2000 3:00 PM
> To: gemerson@sportsrocket.com
> Cc: Dave Samuels; Tana Jones
> Subject: Revisions to NDA
>
>
>
>
> Dave Samuels asked that I review the Nondisclosure Agreement
> that you forwarded
> to him yesterday.  I have reviewed the NDA and prepared a
> number of revisions to
> the Agreement.  Please give me a call to discuss my revisions
> after you have had
> an opportunity it review.
>
> Regards,
>
> Leslie Hansen
>
> (See attached file: ISPNI NDA.doc)
>
>


Rod,

Karen Myer is setting up some meetings between Rick Causey, myself and some of the business units. I just
wanted to let you know a little more about those meetings. The purpose is to discuss Enrons plans to step up our
cash flow reporting and forecasting effort. We have some ideas and would like to bounce those off you and see what
ETS is currently doing and how that fits into our consolidated plan. Please bring whoever who think would be beneficial.

mike d


-----Original Message-----
From: Larry Bass [mailto:lwbthemarine@alltel.net]
Sent: Monday, October 22, 2001 1:47 PM
To: Bass, Eric
Subject: Re: Question

I have bought my suits from a custom tailor for years, though have not
bought a suit for several years. I recommend Wall Street Clothiers, Pat
McLaughlin, 281-360-7891. Price is reasonable. He comes to you with swatches
and style books. You do not leave your office. Dad

----- Original Message -----
From: "Bass, Eric" <Eric.Bass@ENRON.com>
To: "Dad (E-mail)" <lwbthemarine@alltel.net>
Sent: Monday, October 22, 2001 1:30 PM
Subject: Question

Where is a good place to buy a suit?  Where do you shop? A friend of
mine is asking.

Thanks,
Eric

**********************************************************************
This e-mail is the property of Enron Corp. and/or its relevant affiliate and
may contain confidential and privileged material for the sole use of the
intended recipient (s). Any review, use, distribution or disclosure by
others is strictly prohibited. If you are not the intended recipient (or
authorized to receive for the recipient), please contact the sender or reply
to Enron Corp. at enron.messaging.administration@enron.com and delete all
copies of the message. This e-mail (and any attachments hereto) are not
intended to be an offer (or an acceptance) and do not create or evidence a
binding and enforceable contract between Enron Corp. (or any of its
affiliates) and the intended recipient or any other party, and may not be
relied on by anyone as the basis of a contract by estoppel or otherwise.
Thank you.
**********************************************************************


o YourEnergySource Buys Stake in B2B Marketplace CheMatch.com

HOUSTON -- CheMatch.com, a business-to-business
Internet-based marketplace for buyers and sellers
of bulk commodity chemicals, plastics and fuel products,
and YourEnergySource, a wholly owned subsidiary
of Aquila Energy Corp., announced that YourEnergySource
has made an equity investment in CheMatch.com. Last
month CheMatch laid off eight employees but said
at the time it expected more funding. The two companies
also formed a strategic alliance which enables CheMatch.com
customers to negotiate for power and natural gas
contracts online on YourEnergySource's RFP Marketplace.
YourEnergySource operates a digital energy marketplace.
CheMatch is backed by Battery Ventures, Bayer, Computer
Sciences Corp., E.E. DuPont de Nemours & Co., Methanex,
Millennium Chemicals, H. Muehlstein & Co., Reed
Elsevier, Sprout Group, Stolt-Nielsen, and TownsendTarnell.
http://www.chematch.com/
http://www.yourenergysource.com /
_____________________________________________

o InfrastructureWorld.com Names Ex-Forbes Head Vice Chairman

SOUTH SAN FRANCISCO, Calif. -- InfrastructureWorld.com,
a business-to-business Internet portal that links
sponsors, developers, and service providers of infrastructure
projects worldwide, said it has appointed former
Forbes Publisher Jeffrey M. Cunningham as its vice
chairman. Mr. Cunningham is currently senior managing
partner at Internet Finance Partners, as well as
a former president of Internet Media Group at CMGI.
InfrastructureWorld.com is backed by International
Finance Corp., the investment arm of the World Bank
and Bechtel Enterprises Holdings.
http://www.infrastructureworld.com/
_____________________________________________
o Ventro shutting down two b-to-b marketplaces

Ventro (VNTR) is shutting down its two wholly owned b-to-b marketplaces --
Chemdex and Promedix-- after efforts to find buyers failed, the company
disclosed today.  The beleaguered operator of online marketplaces, which had
previously disclosed efforts to sell Chemdex and Promedix as part of a
broader corporate restructuring, said today that those efforts had failed,
forcing today's actions. The shutdowns will begin Dec. 31 and will force
Ventro to fire about 235 workers. The company expects to record aggregate
restructuring charges of about $380 million to $410 million in its fiscal
year-end results in connection with the closures. Ventro shares were trading
up 62 cents to $2.50 in midday trading today.  Chemdex operates an online
marketplace for the life sciences industry, while Promedix is a marketplace
focused on high-end medical equipment. Over the past six months, Ventro has
struggled to convince buyers and sellers to conduct business through these
marketplaces, leading to disappointing financial results and a steep drop in
the company's stock price. In October, Ventro CEO Dave Perry announced plans
for a major restructuring, which would involve selling off stakes in the
company's marketplaces, and transform the company into a provider of services
for b-to-b marketplaces.  But sources familiar with Ventro's restructuring
plans say efforts to sell Chemdex and Promedix fell on deaf ears from
potential suitors because the company could not overcome two big hurdles.
First, potential buyers were turned off by the poor performance of the two
marketplaces. Second, and more importantly, Ventro was pushing unattractive
sale terms, sources say, including a requirement that any marketplace buyer
enter into a long-term services contract with Ventro estimated to be worth
between $10 million and $20 million a year. "This was a big hurdle for
buyers," a source familiar with the Ventro's sale efforts said. "No one
wanted to pay for the marketplaces, then be forced to hire Ventro to run
them."  Ventro executives are holding a conference call later today to
discuss this announcement; it is expected that executives will push the
positive of the shutdowns. Ventro says that future cash outlays for operating
activities will be reduced by 50 percent after Chemdex and Promedix are
shuttered, which should put Ventro on a stronger financial footing as it
struggles to survive.
________________________________________________________

o Providence Equity Partners Raises $2.8 Billion Fund

PROVIDENCE, R.I. -- Providence Equity Partners,
a private equity investment firm with offices in
Providence, R.I., and London said it closed a $2.8
billion Fund IV in November. The fund was raised
from the firm's existing limited partners. Focusing
on telecommunications and media companies, Providence
Equity Partners will commit between $25 million
and $200 million to each of its portfolio companies
and will invest across all development stages. Its
past private equity investments include Mpower Communications,
Tele1 Europe Holding A.B., Verio, Brooks Fiber Properties,
and Western Wireless.
http://www.provequity.com/
_____________________________________________

o Insight Capital Partners Raising $750 Million Fund

NEW YORK -- At an industry conference in New York,
Jerry Murdock, co-founding partner of Insight Capital
Partners, said the firm was raising its fourth fund,
worth $750 million. A spokesperson for the firm
said that the fund's final closing is slated for
early next year, and it has already begun deploying
the funds. Details about the investments weren't
disclosed.
http://www.insightpartners.com/
_____________________________________________

o Wireless ASP GiantBear Secures $25 Million in Series B

WHITE PLAINS, N.Y. -- GiantBear, a wireless application
service provider, said it has secured $25 million
in its Series B round of funding led by First Union
Capital Partners that included previous investors,
Thomas H. Lee Partners and Blackstone Capital Partners.
The company said it will use the funds to develop
its technology and expand market reach. Sean Smith
of First Union Capital Partners will join GiantBear's
board of directors.
http://www.giantbear.com/
_____________________________________________

o Consulting Firm Quidnunc Lands $14.5 Million in Round Two

NEW YORK -- Quidnunc, an international digital business
consulting firm, said it has secured $14.5 million
in its second round of funding led by Barclays Ventures.
The round also included Weston Presido Capital,
Goldman Sachs Private Equity Partners, and Pi Capital.
The company said it will use the funds to develop
its international infrastructure. The company raised
$15 million in its first round over a year ago.
http://www.quidnunc.com/
_____________________________________________

o Platform Developer Advent Has $22.6 Million Round Two

AUSTIN, Texas. -- Advent Networks, which is developing
a platform for high-bandwidth delivery, said it
has secured $22.6 million in its second round of
funding led by UtiliCorp United, an energy company.
Other investors include Southern Union Company,
which already holds an 11% stake in Advent, Motorola,
Reliant Energy, Murphree Venture Partners, and Morgan
Keegan & Co. The company said it will use the funds
to develop its technology.
http://www.adventnetworks.com/
_____________________________________________


Outlook Migration Team@ENRON
05/14/2001 01:26 PM
To: V Charles Weldon/HOU/ECT@ECT, Ed McMichael/HOU/ECT@ECT, Eric
Boyt/Corp/Enron@Enron, Eric Moon/HOU/ECT@ECT, Geraldine Irvine/HOU/ECT@ECT,
Jin Guo/HOU/ECT@ECT, Louis Dicarlo/NA/Enron@ENRON, Maria Garza/HOU/ECT@ECT,
Mark Breese/HOU/ECT@ECT, Sandy Olitsky/HOU/ECT@ECT, Santiago
Garcia/NA/Enron@Enron, Steven Curlee/Corp/Enron@Enron, Alexandra
Villarreal/NA/Enron@ENRON, Andrea Ring/HOU/ECT@ECT, Brad McKay/HOU/ECT@ECT,
Chris Germany/HOU/ECT@ECT, Scott Hendrickson/HOU/ECT@ECT, Eric
Thode/Corp/Enron@ENRON, Jennifer Walker/NA/Enron@Enron, Judy
Townsend/HOU/ECT@ECT, Kathie Grabstald/HOU/ECT@ECT, Kimberly
Bates/HOU/ECT@ECT, Mark Koenig/Corp/Enron@ENRON, Peter F Keavey/HOU/ECT@ECT,
Rebecca Ford/HOU/ECT@ECT, Sandra F Brawner/HOU/ECT@ECT, Scott
Goodell/Corp/Enron@ENRON, Scott Neal/HOU/ECT@ECT, Sean
Boyle/Corp/Enron@ENRON, Susan W Pereira/HOU/ECT@ECT, Victoria
Versen/HOU/ECT@ECT, Vladi Pimenov/NA/Enron@Enron, Craig Taylor/HOU/ECT@ECT,
David Jones/NA/Enron@ENRON, Frank W Vickers/NA/Enron@Enron, Gil
Muhl/Corp/Enron@ENRON, John Hodge/Corp/Enron@ENRON, Maureen
Smith/HOU/ECT@ECT, Nelson Ferries/Corp/Enron@ENRON, Phil
DeMoes/Corp/Enron@ENRON, Robin Barbe/HOU/ECT@ECT, Ruth Concannon/HOU/ECT@ECT,
Tammi DePaolis/Corp/Enron@ENRON, Daniel Lisk/NA/Enron@Enron, Hillary
Mack/Corp/Enron@Enron, Jan Sutherland/NA/Enron@ENRON, Jason
Wolfe/NA/Enron@ENRON, Shannon Groenewold/ENRON@enronXgate, Shelly
Mendel/NA/Enron@ENRON, Stacey J Brewer/HOU/ECT@ECT, Suzanne
Christiansen/HOU/ECT@ECT, Ted Evans/NA/Enron@ENRON, Dina
Snow/Corp/Enron@Enron, Kay Young/HOU/ECT@ECT, Lance
Schuler-Legal/HOU/ECT@ECT, Vineet Arora/NA/Enron@ENRON, Beth A
Ryan/HOU/ECT@ECT, Bill Berkeland/Corp/Enron@Enron, David A
Terlip/Corp/Enron@Enron, Doug Leach/HOU/ECT@ECT, Marc De La
Roche/HOU/ECT@ECT, Randal Maffett/HOU/ECT@ECT, Tushar Dhruv/Corp/Enron@Enron,
Yolanda Cordova-Gilbert/HOU/ECT@ECT, Amy Villasenor/OTS/Enron@Enron, Debra
Young/OTS/Enron@Enron, Jeff Arnold/OTS/Enron@ENRON, John
Reese/FGT/Enron@ENRON, Josh Mayes/OTS/Enron@Enron, Larry
Fenstad/OTS/Enron@ENRON, Mark Adleman/OTS/Enron@ENRON, Mary Ann
Johnson/OTS/Enron@ENRON, Mary Lynne Dix/OTS/Enron@Enron, Mike
Thomas/OTS/Enron@Enron, Morris Brassfield/OTS/Enron@ENRON, Rinetia
Turner/OTS/Enron@Enron, Robert Geheb/OTS/Enron@Enron, Ruthann
Frausto/OTS/Enron@ENRON, Tyrone Brown/OTS/Enron@ENRON
cc:
Subject: 2- SURVEY/INFORMATION EMAIL 5-17-01

Current Notes User:

To ensure that you experience a successful migration from Notes to Outlook,
it is necessary to gather individual user information prior to your date of
migration.  Please take a few minutes to completely fill out the following
survey. Double Click on document to put it in "Edit" mode. When you finish,
simply click on the 'Reply With History' button then hit 'Send'  Your survey
will automatically be sent to the Outlook 2000 Migration Mailbox.

Thank you.

Outlook 2000 Migration Team

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

Full Name:        Chris Germany

Login ID:   cgerman

Extension:   3-4743

Office Location:  3224B

What type of computer do you have?  (Desktop,  Laptop,  Both)  Desktop

Do you have a PDA?  If yes, what type do you have:   (None, IPAQ, Palm Pilot,
Jornada)  Palm V

Do you have permission to access anyone's Email/Calendar?
    If yes, who?  No

Does anyone have permission to access your Email/Calendar?
    If yes, who?  Yes.  Kimberly Bates

Are you responsible for updating anyone else's address book?
    If yes, who?  No

Is anyone else responsible for updating your address book?
    If yes, who?  No

Do you have access to a shared calendar?
    If yes, which shared calendar?  No

Do you have any Distribution Groups that Messaging maintains for you (for
mass mailings)?
    If yes, please list here:  No

Please list all Notes databases applications that you currently use:  Global
facilities, ECT-for sale.

In our efforts to plan the exact date/time of your migration, we also will
need to know:

What are your normal work hours?  From:   7:15 AM   To:      4:30 PM

Will you be out of the office in the near future for vacation, leave, etc?NO
       If so, when?        From (MM/DD/YY):      To (MM/DD/YY):


RIGZONE DAILY NEWS -- WEDNESDAY, FEBRUARY 13, 2002
------------------------------------------------------------
Daily News from the worldwide upstream oil & gas industry
   to view the complete version, please go to:
   http://www.rigzone.com/newsletter_show.asp?n_id=221
------------------------------------------------------------


Attached is an invitation via e-mail inviting you to the Fall General
Meeting of the Western Power Trading Forum.

Gary Ackerman


fyi, we have staff meetings on the first and third Wednesdays, at 130.  The
meetings usually last an hour or less.

ckm


Pretty quiet on the EcoGas/Kafus front...... whats up?

Regards
Delainey


Richard, attached is a revised version of the shorter memorandum (without the
contribution section) which was sent to you by Steve Howard.? We would like
to get your thoughts on the two versions of the memo.? Please contact me at
(213) 892-4573.?

 <<3__R001!.DOC>>

This e-mail message may contain legally privileged and/or confidential
information. If you are not the intended recipient(s), or the employee
or agent responsible for delivery of this message to the intended
recipient(s), you are hereby notified that any dissemination,
distribution or copying of this e-mail message is strictly prohibited.
If you have received this message in error, please immediately notify
the sender and delete this e-mail message from your computer.

 - 3__R001!.DOC