---------------------- Forwarded by Mark - ECT Legal Taylor/HOU/ECT on 
01/27/99 04:02 PM ---------------------------
   
	Enron Capital & Trade Resources Corp.
	
	From:  xtrials@optioninvestor.com (Option Investor Newsletter     Trials)     
                       01/24/99 06:27 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 4 of 6     (calls/puts)



The Option Investor Newsletter             1-24-98
Sunday                4  of  6


*****
DELL - Dell Computer $83.00 (+4.00)(+1.19)(+4.62)(P3W+6.00)

Dell is the largest direct sales PC manufacturer in the
world, listed at 125th in the Fortune-500 and 343rd in the
Global-500 of top companies, with $16.8 billion in sales
over the last 4 quarters. Dell has consistently
outperformed any other major stock for price performance.
Dell is up +1200% in the last five years and has split
their stock five times in the last three years, two times
in 1998 alone.  Dell is a low price, high margin producer
because it has only 6 days of inventory and doesn't have to
pay its suppliers (some who manufacture in Asia) until 8
days later. Since Dell gets paid before it manufactures a
box, they have a huge cash float-can you say "83% return on
equity?"  In late December, they announced a multi-year
marketing deal with AOL to place AOL on all Dell desktops.
In its server business, Dell managed a 62% year over year
sequential revenue growth.  With over 200 product and
service awards earned during 1998, Dell has not forgotten
its manufacturing and marketing prowess

Veteran readers may recall our obituary to DELL written in
October.  For those who missed it, "It is not often we have
to write an obituary for a great play but for those of us
still in denial, Dell may be dead.  We still think Dell is
a great company.  Great earnings, great sales, growing at
+50%, opening new markets.  We think the problems are
many."  We assumed that the shares in float, now totaling
about 980 million (that's "m", not "b"), had split so many
times, so as to dilute the stock's ability to have big
daily run-ups or even bigger earnings per share surprises.
We reasoned it now takes an additional $10 million of
earnings to create $.01 per share surprise.  Dell used to
surprise us by $.05 routinely-pretty hard now to hide $50
million quarterly from Wall Street, especially for an
earnings surprise.  In essence, Dell's ratio of daily
turnover compared to shares in float couldn't move the
price as much.  To add insult to injury, Dell really
flattened out after its last split run to $69, where it
fell back to languish in the $60-$66 range.  In early
November, DELL spiked up  to $72 in anticipation of another
earnings surprise but couldn't hold it after the
announcement.  So we dropped it despite its sound
fundamentals.  Now, Dell's back.

From their 10Q filed with the SEC December 14th, we glean
the following: During the third quarter and first nine
months of fiscal 1999, enterprise unit sales increased 112%
and 165%, respectively, compared to the third quarter and
first nine months of fiscal 1998, and increased
sequentially 13% over the second quarter of fiscal 1999.
Notebook unit sales increased 141% and 123% in the third
quarter and first nine months of fiscal 1999, compared to
the same period of the prior fiscal year, and increased
sequentially 16% over the second quarter of fiscal 1999.
Net revenue increased in all geographic regions in the
third quarter and the first nine months of fiscal 1999 as
compared to the same periods of fiscal 1998. Net revenue
for the third quarter of fiscal 1999 compared to the third
quarter of fiscal 1998 increased 46% in the Americas, 68%
in Europe and 49% in Asia-Pacific and Japan. Net revenue
for the first nine months of fiscal 1999 compared to the
first nine months of fiscal 1998 increased 48% in the
Americas,67% in Europe and 39% in Asia-Pacific and Japan.

Nowadays, this stuff barely makes the news.  We think their
price would be higher if it did.

Wednesday, Dell's volume swelled to over 27 million shares,
well above its 19 million share average, raising the price
$2.19 to an all-time closing high of $85.31.  If Dell can
break this, its next resistance is $88.13, set in Wednesday
intra-day trading.  Thursday and Friday, Dell fared much
better than the overall NASDAQ giving back only $2.31 on
lower than average volumes.  This shows investor
unwillingness to part with the stock, though we could sure
use more high volume trading days.  As evidenced by Dell's
tie for the #1 position in PCs and workstations, we can
only offer an educated guess that Dell contributed
significantly to Microsoft's stellar earnings.  What's good
for the goose is good for the gander, and we expect this to
be well-reflected in Dell's earnings too.  Heck, Gateway
impressed the market with upside surprise earnings. So will
Dell as news of Dell's success's get more notice running
into earnings, scheduled Tues., February 16, after the
close.

It is not likely you'll hear this from the Wall Street
Journal, Baron's or CNBC.  So we'll spread the word.  While
Hewlett Packard still rules the NT space, price deflation
is favoring direct seller Dell, which claimed 20% of the NT
market in the September period, nearly double its previous
share (motley Fool).  Hewlett-Packard and Dell, which had
zero market share in the beginning of 1997, are in a
virtual tie for first place in both units and revenue for
the personal workstation segment (Reuters).  That knocked
Compaq out of the number two slot, as its market share
plunged from 34% to 17% (Motley Fool). Dell will integrate
@Home's broadband Internet service experience with cable-
ready and Dell Dimension desktop PCs (PRNewswire).  Dell
will be the first major computer vendor to offer the
multiple award-winning Digital Flat Panel Solution Pack
from Number Nine Visual Technology. Thursday, they
announced ImageWatch(SM), a program that provides early
notification of technology changes to Dell corporate and
institutional customers, available at no charge.

Dip buying is warranted, but confirm upward market movement first.

BUY CALL FEB-80 DLQ-BP OI=21404 at $7.50 SL=5.75
BUY CALL FEB-85*DLQ-BQ OI=24060 at $4.88 SL=3.00
BUY CALL FEB-90 DLQ-BR OI=18428 at $2.75 SL=1.50
BUY CALL MAR-85 DLQ-CQ OI= 3152 at $7.38 SL=5.75
BUY CALL MAR-90 DLQ-CR OI= 2448 at $5.50 SL=3.75

Picked on Jan. 6th at $75.25      PE = 78
Change since picked  +$ 7.75      52 week low =$23.12
Analysts Ratings 12-9-10-0-0      52 week high=$88.12
Last earnings 10/98 est= .27      actual=.28 surprise +3.7%
Next earnings 02-16 est= .31      versus=.20
Chart = http://quote.yahoo.com/q?s=DELL&d=3m
*****************
Biotech  - Sector
*****************
AMGN - Amgen $114.63 (+5.75)

Founded in 1980, Amgen is a global biotechnology company that
develops, manufactures, and markets human therapeutics based
on advances in cellular and molecular biology.  With sales of
$2.34 billion, it is the largest of the biotech companies and
is more than twice the size of its nearest rival.  Amgen's
products include the billion-dollar blockbusters Epogen (EPO)
and Neupogen, as well as Infergen.  Epogen is used to treat
anemia in patients with kidney failure or patients undergoing
chemotherapy.  Neupogen is used to stimulate the immune system
and Infergen treats chronic hepatitis.  Many other drugs are
in the pipeline, but the most important new drug is NESP--a
next-generation drug to succeed EPO.

On December 22, 1998, Amgen won a critical court ruling over
Johnson and Johnson (JNJ), which gave AMGN exclusive rights
to NESP.  As a young, struggling company, Amgen had sold the
rights to Epogen (EPO) to JNJ, and JNJ claimed NESP, the new
successor to EPO, was just a revised version of the same
drug, and was covered under the EPO sales agreement.  EPO is
one of the top selling drugs in the world.  It's three makers,
JNJ, Roche, and Amgen sold over $3 billion of the drug last
year.  EPO must be injected three times a week and is done in
a hospital setting.  NESP is injected only once per week and
may eventually be used by the patient at home. It will almost
certainly replace EPO when the final phase of ongoing human
testing is completed, and it could give Amgen $1 billion in
annual sales.  Amgen is also working on Major new drugs for
weight loss and Parkinson's, but they are 4-5 years away. EPO
shows skeptics that Amgen really does have important drugs
in the pipeline.

*AMGN announces earnings on Jan. 27th (according to Zack's).
They last split 2:1 in 1995 near $100.  They have 750 mln
shares authorized and only 254 mln outstanding.  A split
is a definite possibility.

Amgen set an intra-day high Wednesday of $115.44, it's only
resistance. Even when the rest of the market was diving
Thursday and Friday, AMGN  was looking strong.  This stock
has been considered a possible take-over target at times in
the past, but has wanted to remain independent.  Now Amgen
has the ability to do the acquiring, if it desires.

BUY CALL FEB-110*AMQ-BB OI=3735 at $8.00 SL=6.25
BUY CALL FEB-115 AMQ-BC OI= 948 at $5.13 SL=3.25
BUY CALL MAR-120 AMQ-CD OI= 641 at $5.38 SL=3.25
BUY CALL APR-115 AMQ-DC OI= 103 at $9.38 SL=7.00
BUY CALL APR-120 AMQ-DD OI=  42 at $7.13 SL=5.50

Picked on Jan 24th at  $114.63      P/E=35
Change since picked    $  0.00      52 week low = 46.63
Analysts' ratings  11-10-7-0-0      52 week high=115.44
Last earnings  9/98  est=$.79 actual=.83 surprise=5%
This earnings  1-27  est=$.84 versus=.67
Chart = http://quote.yahoo.com/q?s=AMGN&d=3m
*************
Miscellaneous
*************
VIA.B - Viacom Inc. $82.56 (+3.25)

Viacom Inc. is an entertainment company centered around
"fun stuff."  It owns networks like MTV, VH-1, Nickelodeon,
Nick at Nite, and Showtime.  It dabbles in Comedy Central,
United Paramount Network, and the All News Channel.  It has
stakes in book publishers, Blockbuster Video, Paramount
Pictures, movie theaters, and music/theme parks.  It even
syndicates it's popular TV show creations like the "Melrose
Place" and "Beverly Hills 90210."

Strictly a momentum play, Viacom has been in a great
long term uptrend from it's October lows.  It has graciously
provided several dips along the way for patient investors.
We would suggest the same.  However, it's latest run
is looking very strong (not a hint of trouble with last
week's market worries).  Maybe investors are jumping
in now for an early start on any earnings run (due out
in about a month).  Surprisingly, A.G. Edwards' multiple
downgrades on this stock has had no effect.  Why they
have it out for this company we don't know.  Fortunately
VIAB (or VIA.B) has been able to shrug them off without
penalty.

No earth shattering news for Viacom this past week.

BUY CALL FEB-80 VMB-BP OI=  67 at $4.75 SL=3.25
BUY CALL FEB-85 VMB-BQ OI=   9 at $2.38 SL=1.25
BUY CALL JUN-80*VMB-FP OI=1069 at $9.13 SL=6.75 more time.

Picked on January 24th at $82.56      PE= 0
Change since picked      +$ 0.00      52 week low =$27.06
Analysts Ratings      4-12-0-0-0      52 week high=$83.88
Last earnings 09-98 est  0.32  actual  0.39
Next earnings 02-25 est  0.13  actual -0.29
Chart = http://quote.yahoo.com/q?s=viab&d=3m
*******************************************
UTX - United Technologies Corp. $114.56 (+4.88)(-5.00)(+5.94)

UTX makes a variety of products, from elevators to air
conditioners. Its subsidiary Carrier is the world's largest
maker of heating and air-conditioning systems.  It manufactures
and services heating, ventilating, and refrigeration equipment.
UTX's Otis is the world's #1 elevator manufacturer; it also
makes and services escalators, moving sidewalks, and shuttle
systems.  Its subsidiary Hamilton Standard produces engine
controls, environmental systems, propellers, and other flight
systems. Another subsidiary Pratt & Whitney makes engines for
both commercial and military aircraft.  The company's Sikorsky
unit makes helicopters

In the news last week, UTX reported earnings of $1.16 per share
which beat the estimates of $1.11 per share.  This represented
an 18% increase above the same quarter a year ago.  Strong
showings in its aircraft and refrigeration businesses were
factors in the increase.  What probably helped the stock more
than the earnings announcement was UTX saying that it has hired
Goldman Sachs to explore strategic alternatives for its
automotive components business.  The automotive components
business is consolidating, operating profits are falling and
revenues are flat.  The Street liked that announcement.

UTX set a new 52 week high on Thursday, and then traded off in
some profit taking.  After the close on Friday, UTX was
downgraded from a buy to a hold by CIBC Oppenheimer.  We don't
know how this will affect UTX on Monday, but we would wait and
see before initiating any new trades.  Also, you need to
remember when trading UTX that it is a Dow 30 component and is
very Dow sensitive.  UTX has two things going for it next week.
One, UTX did not trade down after its earnings announcement
like a lot of stocks have recently.  Two, the Street likes the
fact that it is attempting to sell its underperforming
automotive unit.

BUY CALL FEB-110 UTX-BB OI=873 at $7.38 SL=5.75
BUY CALL FEB-115*UTX-BC OI=206 at $4.25 SL=2.50
BUY CALL MAY-115 UTX-EC OI=125 at $9.00 SL=6.75
BUY CALL MAY-120 UTX-ED OI=260 at $6.88 SL=5.25

Picked on Jan 10th at $114.69   PE=22
Change since picked      -.13   52 week low =$ 67.00
Analysts Ratings    8-4-4-0-0   52 week high=$117.63
Last earnings  12-98 est=1.11   actual=1.16
Next earnings  03-99 est=1.19   versus=1.04
Chart = http://quote.yahoo.com/q?s=UTX&d=3m
*******************************************
DH - Dayton Hudson $59.94 (+3.00)(P3W +4.87)

Dayton Hudson is the parent company of Target Stores, which
accounts for approximately 75% of the company's sales.
Target is the #3 large-format, discount department store
behind K-Mart and Wal-Mart, #2 and #1, respectively, and
the focus of Dayton Hudson's expansion.  Target (pronounced
"Tar-zhay" in some circles) differentiates itself by
offering more upscale merchandise than either K-Mart or
Wal-Mart, but with prices similar to the K-Mart/Wal-mart
genre.  Dayton Hudson also operates Mervyn's California and
Marshall Field's.  All told, Dayton Hudson operates over
1100 stores under the 3 formats, generating almost $28
billion in 1998 sales.

Dayton Hudson's chart reminds us a bit of Maytag with a few
more gyrations.  The chart, with the exception of the mid-
December negative spike and recovery, shows a great
trajectory.  Technicals including MACD, momentum,
stochastics and RSI are all in positive territory.  Last
week, DH showed lots of strength by rising $3 to $59.94, a
new closing high in the overall market downdraft.  That it
held at this level on heavy volume shows strong buying
activity and new support.  Its only resistance is $61.50
reached in inter-day trading.  DH is not a fast mover, but
is a steady performer and a safer play for the less risk
inclined among us.  1189 institutions own 89.5% of the 395
million shares in float leaving about 40 million shares in
daily float; very little percentage-wise for the small
investor.  Earlier in the month, DH announced plans to buy 
back $1 billion of its stock, or about 16.8 million shares
at its current price; should make great action when the
volume picks up.  In Thursday trading, a block of 500,800
shares crossed at $58.75-more support.  Market permitting,
this could be a nice long ride.

Of note, Target "unveiled an exclusive collection of
products for the home designed by highly acclaimed
architect Michael Graves.  Products include clocks,
utensils, small appliances, picture frames, lawn and garden
furniture and much more," according to a PRNewswire
release.  On July 25, Target also plans to open 24 new
stores including its first stores in New England, which
will bring its total to 884 stores.  15 others will open on
March 7.  Total store openings for 1999 should exceed 70.
December 1998 sales increased 11.7% over the previous year,
with 6.5% same store gains over the same period.  We like
this kind of new as it makes the future look pretty good
for DH

BUY CALL FEB-55*DH-BK OI=998 at $ 6.25 SL=4.50 ITM 4.94
BUY CALL FEB-60 DH-BL OI=756 at $ 3.13 SL=1.75
BUY CALL APR-60 DH-DL OI=197 at $ 5.25 SL=3.50 lots of time
BUY CALL JUL-65 DH-GM OI= 32 at $ 5.88 SL=4.25 more time

Picked on Jan. 24th     $59.94        PE= 30
Change since picked     $ 0.00        52 week low =$31.44
Analysts Ratings    10-4-3-0-0        52 week high=$61.50
Last earnings on 09-98 est=     actual=.49
Next earnings on 03-02 est=.86  versus=.42
Chart = http://quote.yahoo.com/q?s=DH&d=3m


****************
PUTS, PUTS, PUTS

Put plays can be very profitable but have a larger risk than
call plays. When a stock is falling the entire investment
community (except the shorts) is hoping it will reverse and
start back up. The company management is also doing everything
they can to shore up their stock price. The company issues
press releases, brokers talk it up, analysts try to put a
positive spin on everything. Then of course there is the death
knell, the "buy recommendation" simply because the price has
dropped to some level that analysts feel attractive again.
Buyers who like the stock wait until it appears a bottom has
been reached and then jump on it in a feeding frenzy. They may
already have a large position and are averaging down. Many
factors can stop a free falling stock in mid drop.
****************
Recommended Puts
****************
Sunday, January 24, 1999

New Recommendations at a Glance:
AMR Corporation (AMR)            $55.25 -3.13 (-9.06)
Avon Products (AVP)              $37.56 - .81 (- .69)
American Express Company (AXP)   $98.50 -4.00 (-5.88)
Bank of Boston (BKB)             $37.63 -1.13 (-1.88)
Pacificare Health Systems (PHSYB)$68.13 -1.50 (-10.75)
Procter & Gamble Company (PG)    $85.31 -1.19 (-1.31)


Current Recommendations at a Glance:
Avnet, Inc. (AVT)                $44.94 - .56 (-1.31)
Bank of America (BAC)            $65.06 - .44 (  .50)
Becton, Dickinson Company (BDX)  $33.75 -3.06 (-6.00)
Campbell Soup Company (CPB)      $44.31   .25 (- .81)
DuPont de Nemours (DD)           $54.31   .25 (-2.69)
Hershey Foods (HSY)              $59.00  1.00 (-2.25)
Microchip Tech (MCHP)            $30.19 -1.00 (-4.94)
Merck (MRK)                      $139.00-7.31 (-8.13)
Perkin-Elmer Corporation (PKN)   $91.31 -2.88 (-4.06)
Warner Lambert (WLA)             $67.94   .94 (-1.88)


Dropped Plays:
Electronic Arts Inc. (ERTS)      $47.75 +1.25 ( .75)
Eastman Kodak (EK)               $65.50   .25 (-3.50)
Eli Lilly (LLY)                  $80.25  2.31 (-1.00)
Rambus (RMBS)                    $88.69 -1.94 (-.82)


New recommendations:
*****

AMR Corporation (AMR)  $55.25 -3.13 (-.9.06)

AMR Corporation (AMR) is a holding company which provides
scheduledpassenger and air freight services throughout the
world(American Airlines), operates regional airlines
(American Eagle), owns The SABRE Group, & provides a range
of aviationservices. For the 9 months ended 9/30/98,

revenues rose 7%to $14.6B. Net income from cont. ops. rose
47% to $1.12B.Revenues reflect strong demand for air travel
due toeconomic growth. Earnings also reflect lower fuel
prices.

Stock breaking down after recent failed rally at $70.  Trading
below 50 and 100-day moving averages while Airline sector is
under pressure.  Target $50 and could re-test $40 if broader
market comes under pressure.

Play: Failed Rally

BUY PUT FEB-60  AMR-NL OI=815 @ $6.00 SL=4.00
BUY PUT FEB-55  AMR-NK OI=486 @ $3.25 SL=1.75

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

Avon Products (AVP) - $37.56 -.81 (-.69)

Avon Products, Inc. (AVP) manufactures and markets beauty&
related products, which includes cosmetics, fragrance
andtoiletries, gift & decorative, apparel, and fashion
jewelry and accessories. For the 9 months ended 9/98,
revenues rose3% to $3.66B. Net income decreased 41% to $121.9M.
Revenuesreflect improved international sales resulting from
stronggrowth in major markets. Earnings were
offset by severancebenefits, inventory write-downs & other
non-recurring costs.

Stock breaking down after recent failed rally at $40.  Resting
just above 100-day moving average.  Could sell-off to $30 or
$25 if broader market breaks down.

Play: Failed Rally

BUY PUT FEB-40  AVP-NH OI=951 @ $3.88 SL=2.00
BUY PUT FEB-35  AVP-NG OI=1583 @ $1.44 SL= .75

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

American Express Company (AXP) - $98.50 -4.00 (-5.88)

American Express Company (AXP) and its subsidiaries provide
travel relatedservices, financial advisory services, and
internationalbanking services worldwide. For the 9 months
ended 9/98, revenues rose 8% to $14.07B. Net income rose 8%
to $1.61B.Revenues reflect higher worldwide billed
businesses,Cardmember spending and loans, and higher
management anddistribution fees. Earnings also reflects
decreased lossprovisions on charge cards.

Stock violated key support becnhmark of $100 and now trading
below 50-day moving average.  See potential sell-off to $90
and re-test of $80.

Play: Failed Rally

BUY PUT FEB-100  AXP-NT OI=1126 @ $5.88 SL=4.00
BUY PUT FEB-95   AXP-NS OI= 538 @ $3.50 SL=1.75

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

Bank of Boston (BKB) - $37.63 -1.13 (-1.88)
Financial

Company Description:
Bank of Boston (BKB) is a bank holding company with both
domestic andinternational operations. For the 9 months ended
9/30/98,total interest income increased 8% to $4.14B. Net
interest income after loan loss provision decreased 2% to
$1.61B.Net income applicable to Common decreased 7% to
$576M. Netinterest income reflects increased average earning
assets,offset by a higher loan loss provision. Net income
reflectsincreased salaries and employee benefits.

Play Description:
Stock violated key support becnhmark of $40 and now trading
below 50 and 100-day moving averages.
See potential sell-off to $30.

Play: Failed Rally

BUY PUT FEB-40  BKB-NH OI=1153 @ $4.00 SL=3.00
BUY PUT FEB-35  BKB-NG OI=1979 @ $1.38 SL= .75

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

Pacificare Health Systems (PHSYB) - $68.13 -1.50 (-10.75)
Healthcare

Company Description:
Pacificare Health Systems (PHSYB)is a managed health care
services companywhich serves customers in commercial and
government productlines. PHSYB also manages, develops and
markets HMO products and related services. Revenues for the
nine monthsended 9/30/98 rose 8% to $7.18B. Net income
applicable toCommon rose 61% to $138.2M. Revenues benefitted
from theFHP acquisition. Earnings also benefitted from
improvedprovider agreements and favorable commercial pricing.

Play Description:
Stock breaking down after recent failed rally at $80.  Trading
below both 50 and 100-day moving averages. Target $60.

Play: Failed Rally

BUY PUT FEB-70  HYQ-NN OI=23 @ $4.88 SL=2.25
BUY PUT FEB-65  HYQ-NO OI=16 @ $2.94 SL=1.75

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

Procter & Gamble Company (PG) - $85.31 -1.19 (-1.31)
Consumer

Company Description:
The Procter & Gamble Co. (PG) markets a broad range
ofconsumer products worldwide in 5 business segments:
Laundryand Cleaning, Paper, Beauty Care, Food and Beverage,
and Health Care. For the 3 months ended 9/98,
revenuesincreased 2% to $9.51B. Net income applicable to
Commonincreased 8% to $1.14B. Revenues reflect price
increasesand favorable product mix. Earnings benefited from
lowercosts of production.

Play Description:
Stock breaking down after recent failed rally at $87.  Resting
just above 100-day moving average.  Could sell-off to $80 or
$70 if broader market breaks down.

Play: Failed Rally

BUY PUT FEB-85  PG-NQ OI=2686 @ $3.25 SL=2.00
BUY PUT FEB-80  PG-NP OI= 842 @ $1.63 SL= .75

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

Avnet, Inc. (AVT) - $44.94 -.56 (-.1.31)
Technology

Company Description:
Avnet, Inc. is a distributor of electronic components and
computer products to industrial customers worldwide.  AVT
also distributes a variety of computer products to both the
end user and reseller channels.  For the three months ended
10/2/98, sales rose 13% to $1.58 billion.  Net income fell
63% to $15.7 million.

Play Description:
Downward trending gross profit margin is due primarily to the
competitive environment in the electronics distribution
marketplace as a result of the global industry correction
cycle as well as the increased sales of computer products,
including microprocessors, which have lower gross margins
than other products in the Avnet's product line.  Avnet needs
to overcome new organizational structure to better focus on
its core businesses to better serve the needs of customers
and suppliers.  Recent news of a "significant" slump in
December sales of core products in its electronics and
computer marketing groups will result in fiscal Q2 EPS of
about $0.75, missing the First Call mean estimate of $0.91.
Stock failed on recent rally at key price point of $60 with
downside gap large enough to drive a truck through.  Stock now
under short and long-term moving averages.  Lots of overhead.
Likely to retest 52 week lows at $35.

Play: Failed Rally

Update:
Stock experiencing continued weakness off of recent earnings
warning. Stock now under short and long-term moving averages.
Lots of overhead. Could to retest 52 week lows at $35. Stock
broke key near-term support at $45 during Friday's (1/22).
Tighten protective stop loss - $46.

BUY PUT FEB-45  AVT-NI OI=270 @ $2.50 SL=1.00
BUY PUT FEB-40  AVT-NH OI=116 @ $1.00 SL= .25

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

Bank of America (BAC) - $65.06 -.44 (.50)
Banking

Company Description:
Bank of America (BAC) is a multi-bank holding company that
provides banking and related services throughout the Mid
Atlantic, Midwest and South. For the nine months ended
9/30/98, total interest income rose 4% to $28.95 billion.
Net interest income after loan loss provision fell 10% to
$11.28 billion.  Net income applicable to Common fell 20% to
$4 billion.  Results reflect increased earning assets, offset
by a lower net interest yield and $1.19 billion in merger and
restructuring costs.

Play Description:
U.S. bank and broker shares are experiencing weakness on
renewed signs of economic and political trouble in Brazil,
where U.S. financial institutions have sizeable operations,
and profit-taking. Brazilian markets were roiled after a
large state within the country last week decided to halt
payments on its debt to the central government.  Some of this
concern carried over to U.S. markets, knocking financial
stocks off highs hit earlier in 1999.  The Bovespa has been
weak, and concerns about Brazil will cool the financial
sector.

Stock likely to test trading range of $55-60, still continues
to underperform sector, has declining relative strength, and
failed at the 200 moving day average.

Play:  Failed Rally

Update:
The financial sector under pressure because of Brazil.
Breaking down again after trading up after last week's
earnings reports from the Banking sector.

BUY PUT FEB-70  BAC-NN OI= 959 @ $6.38 SL=5.00
BUY PUT FEB-65  BAC-NM OI=7988 @ $3.25 SL=2.00

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

Becton, Dickinson and Company (BDX) - $33.75 -3.06 (-6.00)
Medical Equipment

Company Description:
Becton, Dickinson and Company manufactures and sellsa broad
line of medical supplies and devices and diagnosticsystems
used by health care professionals, medical research
institutions and the general public. For the FY ended9/30/98,
revenues rose 11% to $3.12B. Net income applicableto Common
fell 21% to $233.3M.  Revenues benefited fromacquisitions.
Earnings were offset by a $90.9M charge forrestructuring and
the write-down of impaired assets.

Play Description:
Becton Dickinson and Co. shares tumbled 8 percent Friday after
two brokerages concerned about the medical equipment
company's growth rate downgraded the stock. The maker of
medical supplies, devices and diagnostic systems (BDX) saw
shares fall 3 1/16 to 33 3/4 after analyst Ann Barber of Credit
Suisse First Boston cited disappointing first-quarter sales.
Becton Dickinson said Thursday sales rose 10 percent,
shy of Barber's 13 percent projection. Barber, who cut her
rating on the stock to "hold" from "buy," also pointed to a
weakening trend in the company's diabetes business.  Scott
Wilkin at Warburg Dillon Read, also downgrading BDX to "hold"
from "buy" cited "sluggish" sales growth in the first
quarter. Wilkin said Becton Dickinson's earnings of 29 cents
a share was "in line" with his estimate, but "was aided by a
lower corporate tax rate and an unexpected gain in other
income."


Wilkin cut his 1999 earnings estimate for the company to $1.56
a share from $1.57 and his 2000 estimate to $1.75 from
$1.81.Stock

Play: Failed Rally

Update:
Big winner for OI subscribers last week as BDX broke down
precipitously on Friday (1/22). Tighten protective stop loss
- $35.25.

BUY PUT FEB-40 BDX-NH OI=330 at $6.63 SL=4.75
BUY PUT FEB-35 BDX-NG OI=358 at $2.63 SL=1.50

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


PUTS CONTINUED IN SECTION FIVE


**********
PLEASE SEE DISCLAIMER IN SECTION ONE
**********