Slightly Better

Today is expiration day, a triple-witching day, and summer solstice. Volatility
will be the rule today. After this expiration is over, a lot of players will be
heading to the hills for some pre-July 4 holiday time, so I expect things to
slow up a bit next week.

Currency Watch

The dollar continues to be drop-kicked by a combination of low interest
rates, declining equity prices, and of course, our monster trade imbalance. This
situation, although pooh-poohed by the usual "pundits," is a very
strong threat to both the economy and the markets.

Volatility

Volatility rocketed higher yesterday, and we are now starting to climb
into some serious levels. The VIX jumped 2.79 points to 32.50 today, closing on
the highs. The VXN hit a new high for the move, punching out a 2.69 point gain
to 57.93, and the QQV jumped 1.82 to 50.71. It is getting close to option
selling time.

Trade Updates (6/20/02)

(
MER |
Quote |
Chart |
News |
PowerRating) — We sold the MER June/July 40 put calendar spread at $1.40
to close.

New Actions (New Recommendations)

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

(
TGT |
Quote |
Chart |
News |
PowerRating) — Buy another 25% of the January 35 puts at $2.20 (we just missed
this today, keep it working).

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.

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).

(
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 — 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%).

(
TGT |
Quote |
Chart |
News |
PowerRating) — Long the January ’03 35 puts at $2.00 (25%).

(
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%).

(
MER |
Quote |
Chart |
News |
PowerRating) — Long the June/July 40 put calendar at $.50 (50%). Sold at $1.40,
6/20/02.

(
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%).