---------------------- Forwarded by Mark - ECT Legal Taylor/HOU/ECT on 
01/27/99 04:01 PM ---------------------------
   
	Enron Capital & Trade Resources Corp.
	
	From:  xtrials@optioninvestor.com (Option Investor Newsletter     Trials)     
                       01/24/99 06:14 AM
	

Please respond to xtrials@optioninvestor.com
To: Option Investor Newsletter Trials <xtrials@optioninvestor.com>
cc:  (bcc: Mark - ECT Legal Taylor/HOU/ECT)
Subject: Sunday - Option Investor Newsletter 2 of 6 (calls)



The Option Investor Newsletter              1-24-98
Sunday                   2  of  6

Last weeks change for this weeks picks:
***************************************
Index   Last    Week
Dow    9120.67 -219.88
Nasdq  2338.88   -9.27
$OEX    610.38   -6.08
$SPX   1225.19  -18.07
$RUT    422.44   -4.61
$TRAN   3063.8  -84.73
$VIX     32.85

Stock   Price   Week

VOD     187.38   11.38 No buyer's remorse here.
MSFT    156.25    6.51 Split Rumors have resurfaced
NOK/A   144.56    5.94 Earnings Friday/ Split Candidate
AMGN    114.63    5.75 Earnings Wednesday/ Split Candidate
XLNX     78.19    5.31 Announced a 2:1 split
UTX     114.56    4.88 Beat estimates by 5 cents
T        88.25    4.07 T+TCOMA+ATHM+XCIT = Net content for T
DELL     83.00    4.00 If GTW can do it, so can DELL
QWST     60.13    3.82 Strong in Down market
VIA.B    82.56    3.25 New play - Strong Momentum
DH       59.94    3.00 Our new MYG play?
ORCL     49.88    2.75 Partnering with IBM
SNC      37.75    2.44 No weakness here last week!
XIRC     42.00    2.13 Net Income Up 354%
PRIA     35.88    1.37 Earnings on Thursday, Jan. 28th
LXK      99.25    1.18 Earnings on Monday/ Split Candidate
CSCO    102.81    1.13 Time for Earnings RUN
FTL      17.81    1.13 Dropped..in a holding pattern.
WCOM     74.88   -0.19 UUNET division wins GTW contract
MYG      63.63   -0.62 Eight week stretch is over..dropped..
MU       70.50   -0.81 Raised Earnings Forecast
ETH      48.00   -0.94 Dropped
F        60.88   -1.13 Dropped..lack of performance
CCU      59.06   -1.37 Dropped
COF     128.69   -1.75 Dropped
SUNW     98.00   -2.06 Announced 2:1 split (as predicted)
EMC      98.50   -2.07 Earnings Monday, Jan. 25th
JBL      70.00   -3.88 Dropped
AOL     140.44   -6.06 Earnings Wednesday/ Split Candidate
TLAB     79.63   -6.31 Ciena rumor killed it..dropped..

Puts

PHYSB      68.13  -10.75
AMR        55.25   -9.06
MRK       139.00   -8.11
BDX        33.75   -6.01
AXP         98.5   -5.88
MCHP       30.19   -4.94
PKN        91.31   -4.07
DD         54.31   -2.75
HSY        59.00   -2.26
BKB        37.63   -1.88
WLA        67.94   -1.69
AVT        44.94   -1.31
PG         85.31   -1.31
CPB        44.31   -0.82
AVP        37.56   -0.69
BAC        65.06    0.50

***************************************************
SPECIAL SHORT TERM SPLIT PLAYS (in order by split date)

We always recommend selling the day of the actual
split. Profit taking will drive down the price on an
average of 7 of 10 splitters immediately after the split.
They may come back in a week or two but why risk it !


None currently

Current splitters are too erratic

GDT  - Guidant Corp    2:1 01-27-99 ex-date 01-28
INKT - Inktomi         2:1 01-27-98 ex-date 01-28
SPLS - Staples         3:2 01-28-99 ex-date 01-29
EGRP - E*Trade         2:1 01-29-99 ex-date 02-01

*****************************************************
THE PLAY OF THE DAY -CALLS- ONLY PLAY IN RISING MARKET


With all the great plays each week we can never decide
on just one so take your pick.

******
AOL - America Online $140.44 (-6.06)(+0.00)(-8.63)(P6W +83.56)

Split candidate with Wednesday earnings

See details in sector list

Chart = http://quote.yahoo.com/q?s=aol&d=3m
******
NOKA - Nokia $144.56 (+5.94)(+3.63)

Split candidate with Friday earnings (before the open)

See details in sector list

Chart = http://quote.yahoo.com/q?s=noka&d=3m
******
CSCO - Cisco Sys. $102.81 (+1.13)(-5.00)(+13.88)(P7W +28.11)

Split candidate with Friday earnings

See details in sector list

Chart = http://quote.yahoo.com/q?s=csco&d=3m


PICK SUMMARY
************
SL  = Suggested stop loss. Sell if bid breaks this price.
OI  = Open Interest - the number of open contracts outstanding.
TP/P= True premium or Time premium
RRR = Risk/Reward/Ratio
ITM = In the money
ATM = At the money
OTM = Out of the money
MTD = Move to double - amount stock must move to double option price
                       in one week. ONE WEEK MOVE ONLY !

Numbers within ( ) are the amount of change for the week.
Numbers within ( ) may be designated with PxW, like P3W, prior 3 weeks

The options with a "*" by the strike price are our choices from the
group. If the stock moves as expected we feel they have the best
chance to substantially increase or double in price with the best
risk/reward ratio compared to the other options for the same stock.
You must determine if they fit your risk profile for time and price.

Analysts ratings: 1-2-3-4-5
Analysts who follow each stock rate it and these rating are
accumulated and displayed as follows;

Position 1 = number of analysts recommending "strong buy"
Position 2 = number of analysts recommending "moderate buy"
Position 3 = number of analysts recommending "hold" or "neutral"
Position 4 = number of analysts recommending "moderate sell"
Position 5 = number of analysts recommending "strong sell"

Example rating 5-3-1-0-0 would be 5 "strong buys", 3 "moderate buys",
1 "hold" recommendation.



STOCKS ADDED TO THE PICK LIST
*****************************

Calls

VIAB - Viacom
QWST - Qwest Communications
DH   - Dayton Hudson
ORCL - Oracle
AMGN - Amgen
SNC  - Snyder Communications
XLNX - Xilinx
VOD  - Vodaphone

Puts

AMR  - AMR Corp
AVP  - Avon Products
AXP  - American Express
BKB  - Bank of Boston
PHYSB- Pacificare Health
PG   - Procter & Gamble



PICKS WE DROPPED THIS WEEK
**************************
Remember that historically, when we drop a pick it will go up
10 to 15% the very next week. It is part of Murphy's Law.
Just because we drop a stock as a pick does not mean we are
advocating a "sell" on any position you have. We are simply
dropping our recommendation as a new play. Existing plays
can and do continue on and are usually profitable.



CALLS:

JBL $70.00 (-3.88) JBL closed under its 30 day moving average
on Friday.  Its chart has flattened out and it looks like it
has lost all momentum.  JBL has had a nice run since October,
but we are going to have to drop them as a pick.

MYG $63.63 (-0.62)  It is time to say good-bye to our
good 'ole friend Maytag.  For the past two weeks, MYG has
struggled in the weakened market.  It sure would have been
nice if Maytag had managed to keep its incredible streak alive.
But, the -143.41 drop in the market on Friday snuffed out any
chance of MYG rallying.  For the first time in eight
weeks it finished with a net negative.  Even though Maytag
announces earnings on Feb 4th and the possibility of a split
remains, we feel that Maytag has lost some of its steam.  We
are dropping it as a pick for the time being.

TLAB $79.63 (-6.31) Ciena, the flea, puts Tellabs in the
doghouse.  Seems like every time we get a good play on
Tellabs, rumors circulate that Ciena is again in
acquisition talks with them.  Ciena goes up $4 on the rumor
while TLAB pays the $4 penalty.  TLAB is still a great
company, but until the Ciena rumor goes away or the market
decides it likes the idea of a merger, we can't recommend a
play.  Thus we are dropping TLAB for now.

COF $128.69 (-1.75) We are dropping COF this week.  COF had
a sub-par week and just hasn't been performing like we would
expect it to.  Providian Financial has performed much better
and is COF's key competitor.  It is likely most of the damage
is sector related.  The banks are always weak whenever there
is economic worries overseas.  COF suffers with them despite
the fact that they have virtually no overseas exposure.  COF
did announced earnings that were right on estimates.

ETH $48.00 (-.94) We are dropping ETH in favor of some quicker
moving plays.  ETH has had a strong run, but has turned down
now for three straight days.  ETH had a nice earnings push and
was able to get as high as $50.75 on the 19th, but since then
has tapered off.  ETH CEO did mention that there is a lot of
pent up demand for their products and when this comes to
fruition, we might see a move to the upside.  Of course this
could just be a consolidation after the strong move.

FTL $17.81 (+1.13) While the possibility of a takeover is
still there, FTL has hit a ceiling in it's enthusiasm.
For the last couple of weeks it's been trading sideways.
We feel it may be stuck in a holding pattern while waiting
on news of an offer.  If you are still interested in playing
you might consider the May options thus giving yourself
more time.  However, if volume is any indication, current
month Febuarys have been popular.  Monday mornings have
become the popular time to announce news of mergers and
buyouts.  Something could be brewing for the Jan. 25th.

F $60.88 (-1.13) After a 10% rise in operating profits,
a 100% increase in their cost cutting success, and their
11th consecutive quarter of beating the street's estimates
and their stock drops almost 4 points.  It is quite likely
that the Dow's 215 drop Thursday/Friday was a catalyst
for the decline but we expected better from this automaker.

CCU $59.06 (-1.37) Dropping 2 days in a row after setting
a new 52 week high, CCU has succumbed to profit takers.
We understand the need for consolidation and pullbacks
after a strong run, but breaking through it's 10 dma is
not a good sign.  Depending on how the market performs
next week, we will either see a large bounce back up
through its 10 dma or a continued slide.  Increased
interest in competitor AMFM's merger or acquisition
activity may drive interest back into this sector but
we are cautious and willing to trade this play for a
stronger one.  Nimble traders should watch for
opportunities.  This stock is prone to strong 3-5-7
day cycle trading.

PUTS:

Eastman Kodak (EK) - $65.50 .25  (-3.50)
Big winner for OI subscribers after stock gave up more than
$15 over the past two weeks.  Stock reached our target of $65
and now trading at prior support level.

Electronic Arts Inc. (ERTS) - $47.75 +1.75 (.75)
Stock trading and holding above key support level of $45.
Will revisit play if ERTS violates support.

Eli Lilly (LLY) - $80.25 2.31 (-1.00)
Stock rallied more than $2.00 during Friday's (1/22) broad
market sell-off.  Stock sold more than $15 before firming
above it 200day moving average.  Appears to have found support
at $75-80.

Rambus (RMBS) - $88.69 -1.94 (-.82)
Stock traded up nearly $2 during Friday (1/22) sell-off.
Stock now trading near 100-day moving average.



STOCK SPLIT CANDIDATES
**********************

AOL  - America Online
EMC  - EMC Corp
IBM  - Intl Business Machines.
WMT  - Wal-Mart
CSCO - Cisco Systems
NOKA - Nokia
MSFT - Microsoft
LXK  - Lexmark Intl Group Inc
VOD  - Vodaphone



STOCKS WITH UPCOMING SPLITS
***************************
We don't list all splits available, only those we
feel may have play possibilities.

GDT  - Guidant Corp    2:1 01-27-99 ex-date 01-28
INKT - Inktomi         2:1 01-27-98 ex-date 01-28
SPLS - Staples         3:2 01-28-99 ex-date 01-29
EGRP - E*Trade         2:1 01-29-99 ex-date 02-01
WIND - Wind River Sys  3:2 02-04-99 ex-date 02-05
FDS  - FactSet Research3:2 02-05-99 ex-date 02-08
MRK  - Merck           2:1 02-16-99 ex-date 02-17
BMY  - Bristol Meyers  2:1 02-26-99 ex-date 03-01
NSOL - Network Solution2:1 02-26-99 ex-date 03-01
SUNW - SunMicro        2:1 03-11-99 ex-date 03-12

For a complete list of all the coming splits check out the
"split calendar" on the side of the online edition newsletter
page.



NETWORKING
**********
CSCO - Cisco Sys. $102.81 (+1.13)(-5.00)(+13.88)(P7W +28.11)

Cisco is the leading networker and is expected to help
build the next generation Internet. Their goal is to allow
people to access or transfer information without regard to
differences in time, place or type of computer systems,
voice or data.  About 85% of the routers used to decipher
and direct data traffic on the Internet are made by Cisco.

CSCO will gain tremendously from the AT&T/TCI merger since
they will build the equipment needed to harness the mass
appeal of broadband services.  Similarly, in an agreement
signed this week, Cisco will provide technology to Daxian
Electronics so that Daxian can build cable modems under the
Cisco brand to develop cable broadband services in China.
China already serves 100 million cable customers, just 10%
of the market.  Wow!  What potential to connect Chinese
citizens with local and long distance phone service,
Internet, data services, video conferencing, etc.  CSCO
will earn royalties from the transaction too.  Also, a
reminder from a Reuters news release, Cisco continues to
grow 35% per year while the market grows 15%.  CSCO is
truly leading the development of the Internet by helping
cable and phone companies complete "the last mile", or the
distance between the cable in the street an your home.

With as volatile a week as we had on NASDAQ, CSCO held up
well.  It is time we watch for CSCO's earnings run.  Plus,
the network giant is once again a split candidate.  They
are due to announce earnings after the close on February 2nd
where we expect them to announce a split.  It's unusual that
they would split so soon after their 3:2 in September.
Historically though, CSCO splits in the $80-100 range and
they have enough shares authorized to give us another 3:2.
Greet price dips as a buying opportunity, confirm market
direction and use stops.  Day trading CSCO can usually earn
you 5-10% on any given trading day (if you pick the right
option), but you have to watch it and use limit orders (target
shooting works too).  If you do, at least be disciplined.

BUY CALL FEB-100 CYQ-BT OI= 9773 at $8.63 SL=6.50
BUY CALL FEB-105*CYQ-BA OI=14047 at $6.00 SL=4.25
BUY CALL FEB-110 CYQ-BB OI=12486 at $3.88 SL=2.50
BUY CALL APR-110 CYQ-DB OI= 4189 at $8.13 SL=6.25

LEAPS:
BUY LEAP JAN-2000-110 LCY-AB at $21.38 SL=16.75
BUY LEAP JAN-2001-110 ZCY-AB at $30.75 SL=24.00

Picked on Oct   8th     $46.69         PE= 108
Change since picked    +$56.12         52 week low =$37.25
Analysts Ratings   17-13-1-0-0         52 week high=$109.93
Last earnings on 11-04 est=.33         actual=.34
Next earnings on 02-02 est=.36         versus=.29
Chart = http://quote.yahoo.com/q?s=csco&d=3m



Internet
********
AOL - America Online $140.44 (-6.06)(+0.00)(-8.63)(P6W +83.56)

America Online is the largest online Internet access
service in the world.  Membership now exceeds 15 million
users.  Its Chairman, Steve Case, said more new users
signed up with AOL on Christmas Day than any other day in
the company's history.  With estimates of 16 million users
by the year 2000 and growing advertising revenues AOL has
been called the blue chip of the Internets. (If only they
could get their mail problem resolved!)

A case of throwing the baby out with the bath water.
Almost every analyst we hear from regarding the "long
overdue" sell-off of Internet stocks qualifies it with,
"But AOL is the exception".  This was not a good week
overall for the internets; tough on AOL too, though they
showed good strength in adding back $5 from their $135 
opening on Friday morning.  Frankly, we struggle at times
playing AOL during it's consolidation phase.  We still think
that with earnings just 3 trading days away, with the
expectation of a split announcement, buyers will step in to
raise the price and give us a healthy run-up.  AOL reports
23,000 new customers logging on daily, and over $1 billion
sales through its site for the Christmas season.  Weekly,
they add new advertisers paying dearly for the exclusive
privilege of appearing on AOL.  Ever notice those companies
don't report how much it costs them?  It's a lot and we
expect it to be nicely reflected in an earnings surprise.
AOL is well over historic split territory, usually $120-
$130.  They have enough authorized share to give a 3:1, but
2:1 is more likely. Earning are expected after 5:00 p.m.
ET, Wednesday, January 27.  Given the recent pounding
stocks take after announcing great earnings, we strongly
caution all traders to re-analyze their risk to hold over
an earnings announcement.  Just because we expect great
numbers and a split doesn't mean that their earnings won't
turn sour or that a split may fail to materialize.  Confirm
market direction and use stops.  Intestinal fortitude
required.

In the news this week, Prodigy, once a strong AOL
competitor, threw in the towel on 208,00 subscribers of its
Prodigy Classic service because it will not be Y2K
compliant.  Wednesday, AOL reported that they drew 54.5% of
all Internet users at some point in the month of December.
MSFT trailed by 6 percentage points.  AOL Japan reported
200,000 total subscribers.  The real news, not in print, is
about earnings and possible split.

BUY CALL FEB-135 AOE-BG OI=1749 at $15.38 SL=12.00 ITM
BUY CALL FEB-140*AOE-BH OI=6806 at $12.75 SL=10.25 ATM
BUY CALL FEB-145 AOE-BI OI=2549 at $10.25 SL= 7.75 OTM
BUY CALL APR-140 AOE-DH OI=3769 at $22.13 SL=17.25 ATM
BUY CALL APR-145 AOE-DI OI=1420 at $19.63 SL=15.25 OTM

Momentum play

Chart = http://quote.yahoo.com/q?s=aol&d=3m


Telecom
********
WCOM - MCIWorldCom $74.88 (-0.18)(+0.06)(+3.25)(P5W +9.31)

Telecommunications behemoth, MCIWorldCom, is the recent
offspring between a marriage of formerly #2 long distance
provider MCI and #4 provider WorldCom.  Now the newly
formed giant of giants is duking it out with AT&T as they
stake their claim in the local phone service, international
service, cellular, paging, and Internet access arenas.
WorldCom's $37 billion purchase of MCI last September
qualifies it the 7th largest merger or acquisition in 1998.
WCOM is one of the largest Internet backbone providers in
the world.  If you're reading this letter, somewhere in the
transmission, WCOM fiber brought it to you.

WCOM, the 5th largest component of the NASDAQ 100, was down
slightly on the week, which we think is good news given the
Brazil/China/Greenspan jitters.  Buyers stepped in with
heavy volume of 11-18 million shares daily to offer support
in the $73 range.  Average daily volume is 10.7 million
shares.  Technical indicators are not looking so great
right now, except for the strong bounce off Thursday's low.
Resistance is $80.  Market permitting, we expect the bounce
to continue and look for nice profits as WCOM tests $80
again.  If it breaks $80 with good volume, the sky is the
limit.

Noteworthy this week, UUNET, the ISP (Internet service
provider) division of WCOM announced they would be the
service provider for Gateway Computer customer's Internet
service.  Gateway said it chose UUNET because it was the
first company to offer commercial access to the Internet,
and it continues to maintain the industry's most reliable,
rigorously managed and most widely deployed network
(Reuters).  Reuters also noted in a different release that
WCOM was one of Fidelity Magellan's top 10 holdings.
Analyst have also said, "earnings will benefit from the
company's strong position in the fastest-growing segments
of the industry, such as data, Internet and international.
Still getting mileage from award of the GSA contract and
baby bells unfortunate court rulings preventing the baby
bells from entering the long distance market in their home
areas.  This spells good news and continued earnings growth
for the big 3 long distance providers.

BUY CALL FEB-70 LDQ-BN OI= 2717 at $7.13 SL=5.25 ITM $4.88
BUY CALL FEB-75 LDQ-BO*OI=11769 at $4.38 SL=2.75
BUY CALL FEB-80 LDQ-BP OI=14332 at $2.00 SL=1.00
BUY CALL MAR-75 LDQ-CO OI= 6774 at $5.75 SL=4.00

Picked on November 29th at $62.44       PE = 91
Change since picked       +$12.44       52 week high=80.12
Analysts Ratings       23-9-2-0-0       52 week low =31.12
Last Earnings 10/29 est .22  actual .21  surprise -4.5%
Next Earnings 02/04 est .22  versus .15
Chart = http://quote.yahoo.com/q?s=wcom&d=3m
******
QWST - Qwest Communications $60.13 (+3.82)

The Colorado based Qwest Communications International is the
fifth largest local and long distance telephone company in
the United States.  It is also secures broadband
Internet-based data and provides voice and image
communication capabilities to businesses and consumers.
It is currently expanding its reach into Mexico and most of
Europe. In the US, QWST is building its Internet
Protocol-based fiber-optic network which will connect
over 130 cities by mid 1999.

It was nice to see that QWST continued the upward trend it
established early in the week.  We initiated coverage of
this company in Thursday's newsletter.  On Friday, it
affirmed our beliefs by finishing the day up +$0.75 even
though the markets were extremely shaky.  The most recent
date we have for earnings is listed in Zack's as being on
February 11th.  Confirm upward movement before initiating
any new plays.

News:  Qwest has recently formed relationships with several
companies including Verio Inc., Ford, Hometown Connections
and Covad Communications Group Inc.  All of the contracts
formed revolve around improving communication capabilities.

BUY CALL FEB-55 QWA-BK OI=926 at $7.13 SL=5.25
BUY CALL FEB-60*QWA-BL OI=840 at $4.50 SL=2.75
BUY CALL MAR-55 QWA-CK OI= 85 at $8.88 SL=6.75
BUY CALL MAR-60 QWA-CL OI=260 at $6.25 SL=4.75

Picked on January 21st at $59.38      PE= N/A
Change since picked      +$ 0.75      52 week low =$22.00
Analysts Ratings       7-6-3-0-0      52 week high=$63.37
Last earnings 09/98 est -0.06  actual -0.02
Next earnings 02-11 est  0.02  versus  0.07
Chart = http://quote.yahoo.com/q?s=qwst&d=3m
******

T - AT&T $88.25 (+4.00)(+9.31)(+1.19)

AT&T, the mother of all phone companies isn't just a long
distance company any more. Through growth and acquisition,
they now provide data transmission, video tele-
conferencing, PCS/wireless/cellular, Internet, paging and
local phone services via microwave, fiber and copper
infrastructure throughout the U.S. and international
markets.  Their annual revenues in excess of $55 billion
dwarf their nearest competitor, MCIWorldCom, by 5 times.
Their 1998 acquisition of TCG (formerly Teleport
Communications Group, the nations largest competitive local
exchange carrier) and IBM's data services division will add
substantially to their revenues.  Pending a merger with
cable giant, TCI, revenues could grow even more.  Michael
Armstrong, AT&T's CEO, has investors believing that AT&T is
no longer a copper wire dinosaur heading-up the telecom
extinction list.

This is an earnings and momentum play.  Up $4.00 on a down
week, T is behaving more like a tech stock with $6 daily
swings.  Technicals look great and will look even better
when the market shakes off its jitters.  T traded as high
as $96 inter-day Wednesday to give us tremendous profits.
We hope you protected them from the backslide using stop
loss orders.  Given AT&T's turnaround with Michael
Armstrong at the helm, we think AT&T will show excellent
earnings and revenue growth.  There is some confusion with
earnings announcement date shown as January 26 by Zack's.
This is most likely inaccurate.  First Call lists no report
date.  AT&T shareholder relations says, "between February
23-25".  We'll report it to you when AT&T clarifies the
pictures.  In the meantime, with AT&T's current strength,
dips should be met as a buying opportunity.

Some great news: AT&T may sell it's WorldNet ISP division
to @Home for $1 billion in @Home stock.  At Home would then
fold WorldNet's 1.3 million subscribers into its customer
base of 330,000, with the goal of converting the AT&T users
to its much faster, cable-based service.  AT&T, however,
essentially would retain control of it's online service
because it's about to acquire voting control over At Home
with its pending $41 billion purchase of the second largest
U.S. cable TV operator, Tele-Communications Inc.  TCI owns
a 58 percent voting stake in At Home and 28 percent of its
common shares (CBSMarketwatch).  With @Home buying Excite,
AT&T would then have the content to compete with the likes
of AOL.

For those new to our publication (veterans, please forgive
us), three weeks ago, AT&T got the green light to merge
with TCI thus creating a huge bandwidth pipe (lots of
transmission capacity) over "the last Mile" or that short
distance between the street and your phone jack.  It's
estimated that it costs $1200 per home for a typical
utility to trench and install any transmission equipment.
That's why even though the fiber optic cable runs down your
street, you can't yet access it.  It's too expensive to get
it to you.  Soon, you'll be able to bypass that fiber in
favor of AT&T/TCI cable.  It's already there.  Translation:
increased revenues.

BUY CALL FEB-85 T-BQ OI= 8592 at $6.50 SL=4.75 ITM
BUY CALL FEB-90 T-BR OI= 4525 at $3.88 SL=2.25
BUY CALL APR-90 T-DR OI= 2759 at $6.63 SL=4.75
BUY CALL JUL-90 T-GR OI=  792 at $9.38 SL=7.00 lots of time

Picked on Dec 20th at  $73.00    PE = 24
Change since picked   +$15.25    52 week low = $48.38
Analysts Ratings   10-9-8-0-0    52 week high= $96.12
Last earnings  9-98 est= 1.00    actual= 1.16
Next earnings  1-26 est= 1.00    versus=  .81
Chart = http://quote.yahoo.com/q?s=t&d=3m
*****

NOKA - Nokia $144.56 (+5.94)(+3.63)

Nokia is a supplier of telecommunications systems and
equipment and is the world's leading maker of cellular
phones. It's telecommunications and mobile phone sales are
growing rapidly, and margins are higher as well.

We dropped Nokia on Jan. 10th as it began a correction and
picked it up again in last Sunday's letter.  It rewarded us
with a 16.81 jump in price by mid-day Wednesday, before
losing two thirds of that to market weakness the rest of the
week.  Nokia was still up $5.94 on the week.  The
entire telecommunications industry is very strong now, as
investors realize that it is one of the sectors with the most
exciting growth prospects.  As one of the premier companies in
that sector, Nokia is especially strong.  It continues to
announce new contracts to supply its cutting edge products to
companies throughout the world, and plans to double
production at one of it's German plants to meet demand.

We are recommending Nokia as a momentum play and also as a
split candidate.  It's last split announcement was followed be
a long, powerful rise in the stock price. Earnings will be
announced before the bell on Friday, January 29th. Although we
believe that a split announcement is likely, remember what
happened to several other stocks that either did not beat
estimates by a wide enough margin, or did not announce the
expected split.  There is opportunity to play Nokia before the
earnings are released. You could pick them up again Friday
morning if the company announces a split, and the earnings
are as strong as we expect. Holding over can be rewarding but
is always risky.

BUY CALL FEB-140 NAY-BH OI=416 at $12.38 SL= 9.75
BUY CALL FEB-145*NAY-BI OI=432 at $10.00 SL= 7.50
BUY CALL MAR-150 NAY-CJ OI=112 at $10.50 SL= 8.00
BUY CALL APR-145 NAY-DI OI=296 at $15.75 SL=12.25
BUY CALL APR-150 NAY-DJ OI=275 at $13.63 SL=11.00

Picked on Jan 17th at $138.63       P/E=n/a
Change since picked   $  5.94       52 week low = 36.09
Analysts' ratings  10-6-0-0-0       52 week high=155.38
Last earnings  9/98 est=$ .67  act=$.88     surprise=31%
This earnings 01-29 est=$1.01
Chart = http://quote.yahoo.com/q?s=NOKA&d=3m
*****

VOD - Vodafone Group PLC $187.38 (+11.38)

The vote is in, and Vodafone Group is the UK's #1 mobile
telecommunications company, serving about four million
customers. It operates analog and digital cellular networks
offering voice communications, messaging, paging, and mobile
data services. Vodafone sells its cellular phone services
through three distribution businesses: Vodafone Retail,
Vodafone Connect, and Vodafone Corporate. The company provides
cellular services in 12 countries outside the UK; international
operations account for 28% of total revenues. Vodafone will
nearly double its size with the purchase of US-based AirTouch
Communications.

VOD took a down turn with the rest of the market on Friday.  We
don't view this as anything other than profit taking.  If and when
the market resumes it's uptrend, we feel VOD will be a big winner.
Analysts have seemed to like the recent merger announcement of
VOD and ATI.  On the 19th, one analyst raised VOD from neutral
to outperform.  The combining of these two companies has very
little overlap.  This is good news for the current stock price,
because very little overlap means the quicker earnings can be
increased.  When you look at a chart of VOD, you'll notice the
choppy nature of the chart.  VOD has a lot of gaps at the open.
This is due to the nature of an ADR(American Depository Receipt).

*OI is low because the stock moves so quickly.
BUY CALL FEB-185 VOD-BQ OI=348 at $11.25 SL= 8.75 $2.63 ITM
BUY CALL FEB-190 VOD-BR OI= 33 at $ 8.00 SL= 6.25
BUY CALL MAR-190 VOD-CR OI= 14 at $11.63 SL= 9.00
BUY CALL APR-190 VOD-DR OI=  4 at $14.25 SL=11.25

Picked on Jan 21st at $190.31  PE=66
Change since picked     -2.93  52 week low =$ 75.19
Analysts Ratings    3-2-2-0-0  52 week high=$197.00
Last earnings 01/99 est=    ?  actual= .61
Next earnings 05-27 est= 1.56  versus=1.21
Chart = http://quote.yahoo.com/q?s=VOD&d=3m
*****

SEE DISCLAIMER IN SECTION ONE