Michael:
Thanks for putting the paperwork together.  

I would have interest in meeting if you can present unique investment 
opportunities that I don't have access to now.  Most of my contact with 
financial advisors in the past has consisted of them suggesting a mutual 
fund, telling me to invest in Home Depot, Sun, and Coke, or trying to pass 
off their banks' biased research reports as something valuable.  The above 
services provide no value to me personally.  If you can present opportunities 
such as access to private equity or hedge funds, or other ideas with strong 
growth potential and low correlation to the S@P, I'd listen.

John





"Michael Gapinski" <michael.gapinski@painewebber.com> on 02/21/2001 08:23:04 
AM
To: "'John.Arnold@enron.com'" <John.Arnold@enron.com>
cc: "'Rafael Herrera'" <rafael.herrera@painewebber.com> 
Subject: RE: Buying back calls


John -

We'll get the paperwork together and sent to you for naked options.  At some 
point, I'd like to talk about the diversification strategy in more detail -- 
perhaps over dinner or a quick meeting after the markets close?

Michael Gapinski
Account Vice President
Emery Financial Group
PaineWebber, Inc.
713-654-0365
800-553-3119 x365
Fax: 713-654-1281
Cell: 281-435-0295

-----Original Message-----
From: John.Arnold@enron.com [SMTP:John.Arnold@enron.com]
Sent: Tuesday, February 20, 2001 10:14 PM
To: michael.gapinski@painewebber.com
Subject: Re: Buying back calls


Michael:
Appreciate the idea.  However, with my natural long, I'm not looking to
really trade around the position.  I believe ENE will continue to be range
bound, but in case it is not, I don't want to forgo 50% of my option
premium.
I have price targets of where I would like to lighten up exposure to ENE
and will use calls to implement the stategy.  To that regards, I noticed I
was not approved to sell naked calls.  I would like that ability in order
to hedge some exposure I have of unexercised vested options.  Please look
into that for me.
John.




"Michael Gapinski" <michael.gapinski@painewebber.com> on 02/20/2001
06:28:27 PM

To:   "'Arnold, John'" <john.arnold@enron.com>
cc:
Subject:  Buying back calls


John -

I was looking at the recent pullback in ENE and thinking it might be an
opportunity to buy back the calls you sold.  Of course, you would then be
in a position to sell calls again if the stock makes a bounce.  I'm not
sure that ENE @ 75 is the place, but maybe @ 73.  Call me if you're
interested.

Michael Gapinski
Account Vice President
Emery Financial Group
PaineWebber, Inc.
713-654-0365
800-553-3119 x365
Fax: 713-654-1281
Cell: 281-435-0295



Notice Regarding Entry of Orders and Instructions: Please
do not transmit orders and/or instructions regarding your
PaineWebber account(s) by e-mail. Orders and/or instructions
transmitted by e-mail will not be accepted by PaineWebber and
PaineWebber will not be responsible for carrying out such orders
and/or instructions.  Notice Regarding Privacy and Confidentiality:
PaineWebber reserves the right to monitor and review the content of
all e-mail communications sent and/or received by its employees.






Notice Regarding Entry of Orders and Instructions: Please
do not transmit orders and/or instructions regarding your
PaineWebber account(s) by e-mail. Orders and/or instructions
transmitted by e-mail will not be accepted by PaineWebber and
PaineWebber will not be responsible for carrying out such orders
and/or instructions.  Notice Regarding Privacy and Confidentiality:
PaineWebber reserves the right to monitor and review the content of
all e-mail communications sent and/or received by its employees.