Mucho Lower

The market was then tag-teamed with warnings from
(
AMD |
Quote |
Chart |
News |
PowerRating), Apple
(
AAPL |
Quote |
Chart |
News |
PowerRating)
and Ciena
(
CIEN |
Quote |
Chart |
News |
PowerRating). The market then proceeded to drop like a rock, leaving us
where we are now. Congratulations to the folks who leaned into the ORCL report.
Being the greedy pig that I am, I decided I would sell QQQs at $29.20, never got
anything off, and now I am holding the bag.

I would also like to congratulate several readers who wrote to tell me that they
managed to buy that SMH spread we were trying to get yesterday. Some managed to
pay $2.00, some paid up to $2.10, I wish I had! (It probably wouldn’t be a bad
idea to take profits this morning.) I am now going to suspend the SMH
recommendations until we see where they go and how they feel.

Volatility

Volatility stayed pretty close to home yesterday. The VIX dropped .27 to 27.33,
the VXN dropped .43 to 54.55, and the QQV lost 1.19 to 45.73.

Trade Updates (6/18/02)

Nothing Done — We missed buying the SMH July 32.5/37.5 put spread at
$2.00 by a whisker, and I am now openly weeping.

New Actions (New Recommendations)

None.

Working Orders (Old Recommendations)

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

(
MER |
Quote |
Chart |
News |
PowerRating) — Sell the July 37.5 puts at $3.00.

(
MER |
Quote |
Chart |
News |
PowerRating) (2) — Sell the June/July 40 put calendar spread at $1.50.

(
SEBL |
Quote |
Chart |
News |
PowerRating) — Buy 50% of the SEBL November 15 buy-write at $11.50.

(
SMH |
Quote |
Chart |
News |
PowerRating) — Buy the July 32.5/37.5 put spread (buy the July 37.5 puts, sell the
July 32.5 puts) at $2.00 (25%).

Rolls/Adjustments

(
BAC |
Quote |
Chart |
News |
PowerRating) — Holders of the BAC August 65 puts (long at $1.25, 100%),
buy one BAC August 70 put (to open), sell two BAC August 65 puts (to close), for
$.10 debit (you pay). We actually got a small amount of this done today.

(
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).

(
JNJ |
Quote |
Chart |
News |
PowerRating) — Holders of the JNJ January ’03 60 puts (long at $3.30, 37.5%), buy
the January 50 puts (to open), and sell the January 60 puts (to close) for $5.00
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 60 puts at $3.30 (37.5%).

(
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 65 puts at $1.25 (100%).

(
MER |
Quote |
Chart |
News |
PowerRating) (2) — 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%).

(
MER |
Quote |
Chart |
News |
PowerRating) — Long the June/July 40 put calendar at $.50 (50%).

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

(
SMH |
Quote |
Chart |
News |
PowerRating) — Long the July/August 32.5 put spread at $.70 (25%).