Dollar Under Pressure Again

Currently, DJI futures are 47 lower, S&P futures are 4.40 lower, and Nasdaq
100 futures are 18.50 lower. Russell futures appear to be a shade higher. In
Europe, the FTSE was down 1.3%, and the DAX was down hard, losing 2.6%. In Asia,
the Nikkei was up 1.1% while the Hang Seng gained 6%.

Volatility

Volatility was oddly mixed Friday. The VIX dropped 1.22 points to
31.28, the VXN cruised to new highs for the move and levels not seen since last
fall, gaining 1.37 to 59.30! Last November’s high was 63.14 — phew! The QQV was
more or less unchanged today, settling at 50.74, +.03. The QQV made an intraday
high of 53.42, levels not seen since last October/November.

Volatility is screaming and there should be a climax in here somewhere — but
never stand in front of a freight train.

Trade Updates (6/21/02)

(
HAL |
Quote |
Chart |
News |
PowerRating) — We sold the July/October 17.5 call calendar spread (buying
the July 17.5 calls to close, selling the October 17.5 calls to open) at $1.00
to “roll” our buy-write position. This leaves us long the HAL October
17.5 buy-write at $13.25 (100%).

(
JNJ |
Quote |
Chart |
News |
PowerRating) — We sold the JNJ January ’03 50/60 put spread today for $5.00. This
closes our January ’03 60 put position (long 37.5% at $3.30), and rolls us into
the January ’03 50 puts at $1.70 credit!

(
MER |
Quote |
Chart |
News |
PowerRating) — We cancelled the recommendation to sell the MER July 37.5 puts at
$3.00.

(
TGT |
Quote |
Chart |
News |
PowerRating) — We bought another 25% of the TGT January ’03 35 puts at $2.80
(after missing them at $2.20 yesterday). This raises us to a 50% allocation at
an average cost of $2.40.

New Actions (New Recommendations)

(
AMGN |
Quote |
Chart |
News |
PowerRating) — Buy the January ’03 30/40 put spread at $3.00 (25%).

Working Orders (Old Recommendations)

(
CHIR |
Quote |
Chart |
News |
PowerRating) — Sell all CHIR July 50 calls at $1.00 to close.

Rolls/Adjustments

(
DYN |
Quote |
Chart |
News |
PowerRating) — Holders of the DYN January 15 call/June 20 call proxy
buy-write (long the January 15 calls, short the June 20 calls at $3.20),
buy the June 15 calls (to open) and sell the September 17.5 calls (to open)
for $1.00 credit (to you).

(
SEBL |
Quote |
Chart |
News |
PowerRating) — For those long the SEBL August 27.5 buy-write: Buy the SEBL
August 27.5 calls (to close) and sell the November 20 calls (to open) for $2.00
credit.

Buy-writes

Proxy buy-writes

(
DYN |
Quote |
Chart |
News |
PowerRating) — Long the January 15/June 20 proxy buy-write at $3.20 (50%).

Complex Strategies

(
JNJ |
Quote |
Chart |
News |
PowerRating) — Long the January 50 puts at $1.70 credit (37.5%).

(
TGT |
Quote |
Chart |
News |
PowerRating) — Long the January ’03 35 puts at $2.40 (50%).

(
CHIR |
Quote |
Chart |
News |
PowerRating) — Long the July 50 calls at $3.30 (50%).

Call Spread Positions

None.

Put Positions

(
BAC |
Quote |
Chart |
News |
PowerRating) — Long the August 70 puts at $2.60 (100%).

(
MER |
Quote |
Chart |
News |
PowerRating) — Long the July 37.5 puts at $1.40 (25%).

Spread Positions

(
DJX |
Quote |
Chart |
News |
PowerRating) — Long the July 90/96 put spread at $2.00 (25%).

(
MMM |
Quote |
Chart |
News |
PowerRating) — Long the October 110/120 put spread at $2.80 (100%).