Lower Opening Ahead

Interest rate futures are higher after yesterday’s beating, the dollar is lower
against the major foreign currencies, crude is slightly higher, as is gold.
Nothing on the docket as far as economic reports today, so it should be a
technical trade. The market sits in great shape technically as it took out
several key resistance levels on heavy volume. Next week is a holiday week, and
there is a good chance that some profit-taking will develop ahead of what will
likely be a very slow week.

I think we need to sit back and watch for the test of the resistance levels that
were taken out yesterday, we should get a check of those levels soon, and take a
shot from the long side there with tight stops.

Volatility

Volatility got crunched again today. The VIX lost 1.29 to 27.37, the
VXN fell .12 to 44.70, but the QQV actually rose .83 to 38.59 – I’m sure it will
get over it soon.

Update: (11/21/02)

WAG — Oddly enough, we took profits on one of our bearish positions
today (and this stock must be a real dog to have gone down on a day like today).
We sold half of our WAG January 30/35 put spreads at $3.00, we are working the
balance at $4.00.

New Recommendations

BGEN — Sell half of the January 40/45 call spreads at $3.50 (or buy
the January 40/45 put spread at $1.45).

HAL — Sell the Halliburton January 15 buy-write at $14.50 to close.

SMH – Suspend the December 30 call strategy until we see the lay of the
land today!

Working Orders (Old Recommendations)

CIEN — Buy the January 2.5 puts at $.05 to close.

DIA — Buy the January 80/84/88/92 call condor at $1.20 or better (25%).

WAG — Sell  the remaining January 30/35 put spreads at $4.00 to close.

QQQ — Subscribers short the January 23/26 call spread at $1.50 (25%), leave an
order in the market to purchase the spread at $1.50 to close the trade.

Buy-writes

HAL — Long the January 15  buy-write at $12.05 (100%).

Proxy buy-writes

DYN — Long the January 15 calls at $3.20 — left over from proxy buy-write
(50%). Left for dead.

Complex Strategies

None.

Call Spread Positions

BGEN — Long the January 40/45 call spread at $1.25 (50%).

DIA — Long the December 80/84/86/90 call condor at $1.20 (25%).

QQQ — Short the January 23/26 call spread at $1.50 (25%).

Put Positions

None.

Put Spread Positions

BAC — Long the January 60/70 put spread at $2.90 (25%).

KSS — Long the January 50/60 put spread at $2.475(50%).

WAG — Long the January 30/35 put spread at $1.00 (50%).