---------------------- Forwarded by Mark - ECT Legal Taylor/HOU/ECT on 
01/27/99 04:03 PM ---------------------------
   
	Enron Capital & Trade Resources Corp.
	
	From:  xtrials@optioninvestor.com (Option Investor Newsletter     Trials)     
                       01/24/99 06:38 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 6 of 6     (C.Calls/NkdPuts)



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


COVERED CALL SECTION FOR JANUARY 24, 1999
******************************************************************
The Lesson Begins..

This week, we are going to begin a new educational series on basic
covered-call techniques. The first step is to explain our current
approach and the appropriate method for using this much maligned
strategy.

The objective of covered writing for most investors is increased
income though stock ownership. By definition, the ideal covered
call offers reduced risk and a good probability of making a profit.
In fact, our primary goal is to provide the subscriber with plays
that produce acceptable returns while still receiving an above
average amount of protection.

A mathematical basis...

The main factor that we focus on is called "return unchanged".
This is the return on investment that one would achieve if the
stock price were unchanged at option expiration. One can compare
potential plays more accurately using this approach since no
assumption is made about stock price movement. This method ignores
the relative price of the sold strike (ITM - OTM) and focuses
completely on the overall position.

A very simple concept...

With this conservative option writing strategy in mind, we look
for plays that return a minimum of 3%-5% per month and retain
downside protection of at least 10% (of the current stock price).
The overall position that is constructed using these guidelines
will be a relatively low risk play (regardless of the volatility
of the underlying stock) since the levels of protection will be
large and there is still the expectation of a reasonable return.

Other things to consider...

The amount of downside protection and the return on investment are
both very important considerations in determining which play to
choose but the technical and fundamental outlook of the underlying
stock must also be favorable.

The reason for ITM plays...

A minimally acceptable return is somewhat a matter of personal
preference but with the current market volatility, it would appear
that the advantages of the in-the-money position, (more consistent
profits and reduced risk) is more attractive to the majority of
our investors.

Next week, we'll discuss more covered-call strategies. Good Luck!
******************************************************************
SUMMARY OF PREVIOUS PICKS (4 weeks to February strike date)
******************************************************************
Stock  Price  Last   Mon  Strike  Opt     Profit   ROI   Monthly
Sym    Picked Price       Price   Bid     /Loss          ROI

TOK     9.75  10.25  Feb  10.00   1.63   *$ 1.88  23.2%  14.4%
MCRE    5.38   8.88  Feb   5.00   1.25   *$ 0.87  21.1%  13.1%
ARTT    7.38   9.38  Feb   7.50   1.13   *$ 1.25  20.0%  12.4%
SPNSF  10.13  10.44  Feb  10.00   1.25   *$ 1.12  12.6%  11.0%
ARTT    8.25   9.38  Feb   7.50   1.44   *$ 0.69  10.1%   8.8%
BTIM   18.50  17.88  Feb  15.00   4.88   *$ 1.38  10.1%   8.8%
MCHM    8.75   7.94  Feb   7.50   1.94   *$ 0.69  10.1%   8.8%
BID    32.25  38.69  Feb  30.00   5.88   *$ 3.63  13.8%   8.5%
PLCM   25.88  26.75  Feb  25.00   3.00   *$ 2.12   9.3%   8.1%
DOSE    6.50   7.25  Feb   5.00   2.00   *$ 0.50  11.1%   8.0%
SDTI   22.00  25.81  Feb  20.00   4.38   *$ 2.38  13.5%   7.3%
NSTA   26.25  26.13  Feb  25.00   4.13   *$ 2.88  13.0%   7.1%
PPOD    6.81   7.44  Feb   5.00   2.31   *$ 0.50  11.1%   6.9%
ABTE    8.75  10.25  Feb   7.50   1.88   *$ 0.63   9.2%   6.6%
INFS   11.38  10.13  Feb  10.00   2.06   *$ 0.68   7.3%   6.3%
QNTM   26.88  24.81  Feb  25.00   3.75    $ 1.68   7.3%   6.3%
ITVU   24.50  18.00  Feb  17.50   8.13   *$ 1.13   6.9%   6.0%
CHRX   21.38  20.50  Feb  20.00   3.13   *$ 1.75   9.6%   6.0%
NEWZ   11.63  11.50  Feb  10.00   2.44   *$ 0.81   8.8%   5.5%
BNYN   14.44  13.50  Feb  10.00   5.13   *$ 0.69   7.4%   5.4%
GALTF  25.50  22.06  Feb  22.50   5.38    $ 1.94   9.6%   5.2%
ARTT    7.38   9.38  Feb   5.00   2.75   *$ 0.37   8.0%   5.0%
PTVL   22.19  22.44  Feb  15.00   8.13   *$ 0.94   6.7%   4.8%
PTVL   18.38  22.44  Feb  12.50   6.88   *$ 1.00   8.7%   4.7%
MRVT   15.13  13.63  Feb  12.50   3.25   *$ 0.62   5.2%   4.5%
OXHP   20.06  18.81  Feb  17.50   3.38   *$ 0.82   4.9%   3.6%
OXHP   20.06  18.81  Feb  20.00   2.00    $ 0.75   4.2%   3.0%
SYMM    8.56   6.94  Feb   7.50   1.88    $ 0.26   3.9%   2.8%
MWY    10.88   9.00  Feb  10.00   1.50    $-0.38  -4.1%   0.0%

-ROI is equal to the profit (or loss) divided by the cost-basis.
 Monthly ROI represents the return on a monthly basis.
 Example: a 10% return in 20 days equals 15.2% ROI for a month).
-Margin is not used in any calculations.
-Profit/Loss Column: Asterisk indicates stock price above strike
 price and should be called.  Stock that will not be called is
 assumed sold at current price (for tracking purposes).
******************************************************************
    - LOSING PLAYS -
    ****************
We suggest you consider closing the MWY position. Last week, the
stock price fell below technical support after the company said
its revenues and earnings in the second half of its fiscal year
will be below last year's results. The company was downgraded by
Hambrecht & Quist and Piper Jaffray to a "hold".



NEW PICKS
******************************************************************
Definitions:
OI - Open Interest
CB - Cost Basis (Prc pd - Prm rec'd = CB, the break-even point)
RC  - Return Called
RNC - Return Not Called (Stock Price Unchanged)
******************************************************************
Sequenced by Company
******************************************************************
Stock  Price  Mon Strike Option  Opt   Open  Cost    RC      RNC
Sym               Price  Symbol  Bid   Intr  Basis

CMTO   27.56  Feb 22.50  CQH BX  6.13  35    21.43   4.99%   4.99%
INFM    6.13  Feb  5.00  FWQ BA  1.56  180    4.57   9.41%   9.41%
INVX   18.38  Feb 17.50  IVQ BW  1.81  731   16.57   5.61%   5.61%
RDRT   18.31  Feb 17.50  RDQ BW  1.94  1198  16.37   6.90%   6.90%
RNWK   56.50  Feb 45.00  QRN BI 14.25  447   42.25   6.51%   6.51%
SCIO   10.25  Feb  7.50  JQS BU  3.38  763    6.87   9.17%   9.17%
SPNSF  10.44  Feb 10.00  QHH BB  1.56  546    8.88  12.61%  12.61%
SUGN   15.63  Feb 15.00  UGQ BC  1.81  188   13.82   8.54%   8.54%
XEIKY  27.50  Feb 25.00  QIY BE  3.50  158   24.00   4.17%   4.17%
******************************************************************
Sequenced by Return Called
******************************************************************
Stock  Price  Mon Strike Option  Opt   Open  Cost    RC      RNC
Sym               Price  Symbol  Bid   Intr  Basis

SPNSF  10.44  Feb 10.00  QHH BB  1.56  546    8.88  12.61%  12.61%
INFM    6.13  Feb  5.00  FWQ BA  1.56  180    4.57   9.41%   9.41%
SCIO   10.25  Feb  7.50  JQS BU  3.38  763    6.87   9.17%   9.17%
SUGN   15.63  Feb 15.00  UGQ BC  1.81  188   13.82   8.54%   8.54%
RDRT   18.31  Feb 17.50  RDQ BW  1.94  1198  16.37   6.90%   6.90%
RNWK   56.50  Feb 45.00  QRN BI 14.25  447   42.25   6.51%   6.51%
INVX   18.38  Feb 17.50  IVQ BW  1.81  731   16.57   5.61%   5.61%
CMTO   27.56  Feb 22.50  CQH BX  6.13  35    21.43   4.99%   4.99%
XEIKY  27.50  Feb 25.00  QIY BE  3.50  158   24.00   4.17%   4.17%
******************************************************************
Sequenced by Return Not Called
******************************************************************
Stock  Price  Mon Strike Option  Opt   Open  Cost    RC      RNC
Sym               Price  Symbol  Bid   Intr  Basis

SAME AS ABOVE...ALL PLAYS THIS WEEK ARE "IN-THE-MONEY".



Company Descriptions
******************************************************************
CMTO - Com21 Inc.  $27.56     *** Hot Telecom Sector ***

Com21 produces modems, headends, and other equipment used by cable
communications operators to provide broadband access. Other items
include network management software and noise containment devices.
The company's "ComUNITY Access" allows cable operators to offer
multiple transmission rates to customers. The system also provides
high-speed Internet access to telecommuters, office/home users and
individuals and supports videoconferencing applications. Another
good earnings report on Thursday and a secondary stock offering of
3 mil shares. That includes 1 mil shares (no proceeds to CMTO) to
be sold by stockholders and the company will use the money for
general corporate purposes. The dilution is about -$1.18 per share.
Stage II climb with confirming technical indicators.

FEB 22.50 CQH-BX BID=6.13 OI=35 CB=21.43 RC=4.99% RNC=4.99%

Chart = http://quote.yahoo.com/q?s=CMTO&d=3m
******************************************************************
INFM - Infinium Software, Inc.  $6.13  *** Computer software ***

INFM develops/markets/supports business software applications for
the financial, human resource, and materials management functions
of organizations. Reported earnings Jan 21 and the current post-
earnings drop may offer an excellent buying opportunity.  EPS was
flat but revenues increased over 20% for the 8th straight quarter.
Our cost basis is below support and buying pressure has increased
over the last three trading days.

FEB 5.00 FWQ-BA BID=1.56 OI=180 CB=4.57 RC=9.41% RNC=9.41%

Chart = http://quote.yahoo.com/q?s=INFM&d=3m
******************************************************************
INVX - Innovex Inc.  $18.38  *** Dividends! ***

INVX develops and manufactures lead wire assemblies for computer
disk drives. They also design/manufacture flexible circuits and
chemically machined electrical components for the medical/computer
and communications industry. Price of stock spiked after company
settled (undisclosed) with ex-director. Friday, INVX declared an
increase in its regular quarterly dividend to $.04 per share,
payable 2/24/99, to SOR as of 2/10. Stock has strong support at
the cost basis. Buying pressure is off the scale and short term
technicals recently exhibited a "buy" signal.

FEB 17.50 IVQ-BW BID=1.81 OI=731 CB=16.57 RC=5.61% RNC=5.61%

Chart = http://quote.yahoo.com/q?s=INVX&d=3m
******************************************************************
RDRT - Read-Rite Corp.  $18.31  *** Technically Strong ***

Read-Rite Corporation designs, manufactures, and markets magnetic
recording heads for rigid disk drives. The tape always tells the
tale:  RDRT posted $0.02 profit (analyst predicted $0.17 loss) on
Wed. The key will be if the cost cutting and increased production
will work next quarter as current revenues did fall. Technically,
a very bullish chart with resistance around $25.

FEB 17.50 RDQ-BW BID=1.94 OI=1198 CB=16.37 RC=6.90% RNC=6.90%

Chart = http://quote.yahoo.com/q?s=RDRT&d=3m
******************************************************************
RNWK - RealNetworks, Inc.  $56.50  *** Internet volatility ***

RNWK provides branded software products and services enabling the
delivery of streaming media content over the Internet. Caution:
earnings due Jan 27. Recently upgraded/coverage initiated, as
RNWK announced alliances with AtHome and Enron Network.

Question: At what price would you mind owning RNWK? We think
$42.25 isn't that bad, right there at support, and just before
earnings (post earnings dip?). If we don't get it, a 6.5% ROI for
trying seems like just compensation.

FEB 45.00 QRN-BI BID=14.25 OI=447 CB=42.25 RC=6.51% RNC=6.51%

Chart = http://quote.yahoo.com/q?s=RNWK&d=3m
******************************************************************
SCIO - Scios Inc.  $10.25  *** Drug Research ***

SCIO is engaged in the discovery, development, manufacture and
commercialization of novel human therapeutics, primarily
focused on cardiorenal disorders and Alzheimer's disease.
Lilly and SCIO agreed to continue their alliance on Alzheimer
research. Excellent cost basis with room to climb as resistance
is around $12.50. Buying pressure increasing with volume surge
bodes well for continued upward momentum.

FEB 7.50 JQS-BU BID=3.38 OI=763 CB=6.87 RC=9.17% RNC=9.17%

Chart = http://quote.yahoo.com/q?s=SCIO&d=3m
******************************************************************
SPNSF - Sapiens International  $10.44  *** Recent New High ***

SPNSF develops, markets and supports enterprise-wide solutions
for the rapid development of scaleable mission-critical software
applications. See last weeks write up. Here it is again, same
price, same return, consolidating after attaining an all-time new
high on Tuesday. Does this pause offer another entry? Technical
health is still strong and actually improved slightly.

FEB 10.00 QHH-BB BID=1.56 OI=546 CB=8.88 RC=12.61% RNC=12.61%

Chart = http://quote.yahoo.com/q?s=SPNSF&d=3m
******************************************************************
SUGN - Sugen, Inc.  $15.63  *** Bio-tech ***

SUGN, a biopharmaceutical company, discovers and develops small
molecule drugs which target specific cellular signal transduction
pathways. Jan 13, announced that it plans to accelerate the
development of its lead angiogenesis inhibitor, SU5416, moving
directly from Phase I and Phase I/II studies into Phase III
colorectal and lung studies, and a Phase II/III study in
AIDS-related Kaposi's sarcoma. Some signs of increased buying
pressure with a strong support area just above our cost basis.

FEB 15.00 UGQ-BC BID=1.81 OI=188 CB=13.82 RC=8.54% RNC=8.54%

Chart = http://quote.yahoo.com/q?s=SUGN&d=3m
******************************************************************
XEIKY - Xeikon N.V. $27.50 *** No News = New High? ***

Xeikon N.V. develops, produces and markets digital color printing
systems and related consumables. A Technical play based on buying
pressure reversal. BOP indicated max selling two weeks ago and
has now crossed above zero and is increasing - with no news? Hmmm.
Closed at a new high on Wednesday with good MS and volume.

FEB 25.00 QIY-BE BID=3.50 OI=158 CB=24.00 RC=4.17% RNC=4.17%

Chart = http://quote.yahoo.com/q?s=XEIKY&d=3m
******************************************************************
CALLS STRICTLY PERCENTAGE LIST
******************************************************************

This section is no longer mailed but is available in full on
the website - email format.


******************************************************************
NAKED PUT SECTION FOR JANUARY 24, 1999
******************************************************************
Recently, we have had many questions about the margin requirements
for various option strategies. These new-subscriber requests also
contain questions about the necessary trading levels, margin, ROI
and collateral calculations for naked puts. We will try to cover
those subjects in the next few weeks. We start with definitions:

Writing a naked put...

A put writer assumes the obligation to buy the underlying security
at a specific price for a premium. There are two reasons for this
commitment; an investor unwilling to purchase stock at the current
price might write put options, hoping to take a position, (acquire
the stock) at a lower price. Another successful outcome is to just
receive the "premium" income if the stock remains above the sold
strike price. If the stock price finishes below the sold strike,
the seller (or writer) of the put option is obligated to purchase
the underlying stock (100 shares/contract) at the exercise price.
When this occurs, the cost of the stock (or the break-even) will
be the exercise price less the premium. When the sold strike price
goes "in-the-money", an investor must be ready to buy the stock at
any time because option contracts can be exercised early. The put
seller may also close the position by simply "buying-back" the
sold (short) put option.

The cost basis is simply the strike price minus premium received.
We list the cost basis of each play reference "owning the stock";
if it is PUT to you...

The collateral (or equity) required to sell a naked put varies for
different brokers. One of the most common formulas used by online
brokerages (Etrade for example) is:

The greater of :

40% of the current price of the stock plus the premium received,
minus the difference between the cost of the stock and the strike
price;

-or-

20% of the current price of the stock plus the premium received.

As you go deeper out of the money (OTM) the 20% requirement will
take precedence.

ROI is simply the premium received divided by the collateral (or
equity) required to open the position...

Example:
XYZ = 20.00, strike = 10.00, premium = 0.25
40% rule = 0.4*20 + 0.25 - ( 20-10) = -1.75
20% rule = 0.2*20 + 0.25 = 4.25
ROI = 0.25/4.25 =  5.88%

Next week, we will discuss the requirements for trading naked puts.

Good Luck!
------------------------------------------------------------------
                         *** WARNING ***
Occasionally a company will experience catastrophic news causing
a severe drop in the stock price. This may cause a devastatingly
large loss which may wipe out all of your smaller gains. There is
one very important rule; Don't sell naked puts on stocks that you
don't want to own! It is also important that you consider using
trading STOPS on naked option positions to help limit losses when
the stock price drops.
******************************************************************
SUMMARY OF PREVIOUS PICKS
******************************************************************
Stock  Price  Last   Mon  Strike  Opt     Profit   ROI   Monthly
Sym    Picked Price       Price   Bid     /Loss          ROI

WAVO    9.44   8.88  Feb  7.50   0.63   *$ 0.63   25.0%  21.7%
SRCM   19.75  20.88  Feb 15.00   1.06   *$ 1.06   21.2%  18.4%
SMOD   25.38  22.31  Feb 22.50   1.63    $ 1.44   16.2%  14.1%
BNYN   14.44  13.50  Feb 10.00   0.69   *$ 0.69   19.3%  14.0%
PTVL   22.50  22.44  Feb 15.00   0.81   *$ 0.81   15.3%  13.3%
SPLN   31.13  32.25  Feb 22.50   1.00   *$ 1.00   13.8%  12.0%
VIRS   14.13  14.13  Feb 10.00   0.38   *$ 0.38   11.8%  10.3%
VIRS   14.63  14.13  Feb 10.00   0.44   *$ 0.44   13.1%   9.5%
SCUR   26.00  26.50  Feb 20.00   0.56   *$ 0.56    9.7%   8.4%
PCYC   25.38  21.75  Feb 20.00   0.63   *$ 0.63   11.1%   8.0%
SDTI   27.63  25.81  Feb 17.50   0.56   *$ 0.56    9.2%   8.0%
OXHP   20.06  18.81  Feb 17.50   0.63   *$ 0.63   10.3%   7.5%
MUSE   29.38  27.69  Feb 17.50   0.63   *$ 0.63    9.7%   7.0%

-ROI is equal to the profit (or loss) divided by the original
 investment requirement (varies broker to broker).
-Monthly ROI represents the return on a monthly basis.
 Example: a 10% return in 20 days equals 15.2% ROI for a month).
-Profit/Loss Column: Asterisk indicates stock price above strike
 price and put option should expire - not be exercised.  Stock
 to be exercised assumed sold at current price.(for tracking)
******************************************************************
NEW PICKS
******************************************************************
Definitions:
OI  - Open Interest
CB  - Cost Basis (break-even point if put exercised)
ROI - Return On Investment
******************************************************************
Sequenced by Company
******************************************************************
Stock  Price  Mon Strike Option  Opt   Open  Cost   ROI Opt
Sym               Price  Symbol  Bid   Intr  Basis  Expired

CATP   25.00  Feb 20.00  TQP ND  0.44  32    19.56   8.09%
CDNW   23.75  Feb 15.00  NWQ NC  0.38  117   14.62   7.41%
CMTO   27.56  Feb 20.00  CQH ND  0.56  20    19.44   9.22%
PLCM   26.75  Feb 22.50  QHD NX  0.75  500   21.75  10.42%
POWI   31.75  Feb 25.00  QPW NE  0.44  30    24.56   6.48%
PTEK   11.19  Feb  7.50  TQO NU  0.31  3610   7.19  12.17%
RNBO   24.00  Feb 20.00  BQO ND  0.69  20    19.31  10.97%
VRIO   29.25  Feb 22.50  RLQ NX  0.94  67    21.56  13.84%
******************************************************************
Sequenced by Return on Investment
******************************************************************
Stock  Price  Mon Strike Option  Opt   Open  Cost   ROI Opt
Sym               Price  Symbol  Bid   Intr  Basis  Expired

VRIO   29.25  Feb 22.50  RLQ NX  0.94  67    21.56  13.84%
PTEK   11.19  Feb  7.50  TQO NU  0.31  3610   7.19  12.17%
RNBO   24.00  Feb 20.00  BQO ND  0.69  20    19.31  10.97%
PLCM   26.75  Feb 22.50  QHD NX  0.75  500   21.75  10.42%
CMTO   27.56  Feb 20.00  CQH ND  0.56  20    19.44   9.22%
CATP   25.00  Feb 20.00  TQP ND  0.44  32    19.56   8.09%
CDNW   23.75  Feb 15.00  NWQ NC  0.38  117   14.62   7.41%
POWI   31.75  Feb 25.00  QPW NE  0.44  30    24.56   6.48%
******************************************************************
Company Descriptions
******************************************************************
CATP - Cambridge Tech. Partners  $25.00   *** Own this one! ***

CATP provides information technology consulting and software
development services. CATP's strength in developing innovative,
state-of-the-art electronic commerce solutions is widely known.
They recently won the 1998 "Outstanding Web Site" award from
Web Marketing Association. CTP also has a flourishing money
management & trading division and recently joined Persistence
Software to co-market high performance solutions to leading
financial institutions. Also some rumors of a takeover by CPWR
or IBM. The play is based on good technical support around $20.

FEB 20.00 TQP-ND BID=0.44 OI=32 CB=19.56 ROI=8.09%

Chart = http://quote.yahoo.com/q?s=CATP&d=3m
******************************************************************
CDNW - CDNOW  $23.75     *** Still an Internet favorite? ***

CDnow, #2 in online music retailing (behind Amazon.com) now lists
more than 300,000 items, mostly CDs (including obscure titles),
music videos, T-shirts, and movies on its website. It also posts
music reviews, offers about 325,000 sound samples, and enables
customers to create custom CDs through its supersonic BOOM unit.
It attracts customers through alliances with Internet portals
such as Yahoo!. Definitely an established Internet presence and
still acquiring N2K (NTKI). Now a rumor that the combined company
will be bought-out. Has traded above a 30 dma since November.

FEB 15.00 NWQ-NC BID=0.38 OI=117 CB=14.62 ROI=7.41%

Chart = http://quote.yahoo.com/q?s=CDNW&d=3m
******************************************************************
CMTO - Com21 Inc.  $27.56     *** Hot Telecom Sector ***

Com21 produces modems, headends, and other equipment used by cable
communications operators to provide broadband access. Other items
include network management software and noise containment devices.
The company's "ComUNITY Access" allows cable operators to offer
multiple transmission rates to customers. The system also provides
high-speed Internet access to telecommuters, office/home users and
individuals and supports videoconferencing applications. Another
good earnings report on Thursday and a secondary stock offering of
3 mil shares. That includes 1 mil shares (no proceeds to CMTO) to
be sold by stockholders and the company will use the money for
general corporate purposes. The dilution is about -$1.18 per share.
Stage II climb with confirming technical indicators.

FEB 20.00 CQH-ND BID=0.56 OI=20 CB=19.44 ROI=9.22%

Chart = http://quote.yahoo.com/q?s=CMTO&d=3m
******************************************************************
PLCM - Polycom  $26.75     *** More Telecom ***

Polycom makes long-distance teleconferencing products for use on
regular telephone networks. Its ShowStation data-conferencing
system enables people in different locations to view and edit
documents on a simultaneous, interactive basis. Its SoundStation
audio-conferencing system, provides two-way voice communication
without typical speakerphone distortion. Subsidiary ViaVideo
Communications offers ViewStation, a Web-based videoconferencing
system that features a voice-tracking camera. Reported awesome
earnings last week, net revenues grew 140% for the year to over
$100 million. Technically, an outstanding chart with some recent
support around $21.

FEB 22.50 QHD-NX BID=0.75 OI=500 CB=21.75 ROI=10.42%

Chart = http://quote.yahoo.com/q?s=PLCM&d=3m
******************************************************************
POWI - Power Integrations Inc.  $31.75  *** Target Buy-in ***

Power Integrations makes a device that cuts down on the energy
consumption of products that operate in an energy-consuming
standby mode when turned off by the user. Its TOPSwitch products
(about 95% of sales) also convert AC power from electricity lines
to DC power for use by appliances. These IC devices are used in
VCRs, personal/laptop computers, cell-phones and rechargeable
batteries. Just posted record earnings with net revenues up 30%.
Excellent BOP and volume on the earnings run, support at $24.

FEB 25.00 QPW-NE BID=0.44 OI=30 CB=24.56 ROI=6.48%

Chart = http://quote.yahoo.com/q?s=POWI&d=3m
******************************************************************
PTEK - Premiere Technologies  $11.19   *** Internet IPO? ***

Premiere Technologies provides enhanced communications services.
PTEK services include 800-based services, voice messaging,
enhanced document distribution and conference calling. Recent
speculation and heavy option volume concerning some of the new
technology from the company. Some say it involves USA.net and the
ability to listen to your email messages and post email via voice
from any touch-tone telephone. Others are betting that ownership
of Usa.Net and Web.Md will benefit PTEK if they go public (IPO).

FEB 7.50 TQO-NU BID=0.31 OI=3610 CB=7.19 ROI=12.17%

Chart = http://quote.yahoo.com/q?s=PTEK&d=3m
******************************************************************
RNBO - Rainbow Tech  $24.00     *** Data Encryption ***

Rainbow Technologies makes antipiracy products that prevent the
unauthorized use of software, and information security products
that protect the security of satellite and network communications.
The company's software protection products contain hardware and
software components that tells the program to search for the key.
Its information security products utilize encryption technology
and are used by the government, military, and private businesses.
A nice technical break-out on good volume puts this one in "Blue
Sky" territory. Should fill the gap but now has support at $20.

FEB 20.00 BQO-ND BID=0.69 OI=20 CB=19.31 ROI=10.97%

Chart = http://quote.yahoo.com/q?s=RNBO&d=3m
******************************************************************
VRIO - Verio Inc.  $29.25     *** Internet Hosting ***

Verio is a national provider of Internet connectivity and enhanced
Internet services to small and medium sized businesses. Verio is
buying regional and local Internet service providers (ISPs) across
the US. It owns or has majority stakes in more than 35 business
oriented providers across the US. Verio is buying ISPs with large
dedicated accounts (accounts with direct lines to the provider)
and is marketing to business and institutional subscribers. The
firm's customers include General Electric and Microsoft. In early
January, Verio became the world's largest domain-based Web-site
hosting company.

FEB 22.50 RLQ-NX BID=0.94 OI=67 CB=21.56 ROI=13.84%

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

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