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[Weekend Summary]

Dear Member,

First things first. Happy 2005. I hope yours is prosperous and brings you great happiness.

I did close the Eresearch LEAPS trade this past week. I was stopped out and captured a 17.8% gain before commissions in 27 days. I may well return to additional plays on this stock.

I also brought in a little income by selling the Feb 15 calls on SEBL for 5 cents. I had enough contracts to make the nickle worthwhile and it also reduced my risk in the original LEAPS position I bought for 70 cents. The sale of the shorter term calls brings a 7% yield by Feb expiration if no other moves become necessary. I am now long the Jan '06 15 calls and short the Feb '05 calls. SEBL had a nice move up on Thursday and was up again today. It is now resting against a resistance.

EBAY closed today at 116.34 so I am happy with the Jan 105/100 credit spread I initially entered for $1. As long as the stock stays above 105 by January expiration, I keep the $1 a share.

Harley Davidson (HDI) is in the money for my Feb 60 calls. It closed at $61.75.

Chiron (CHIR) was up $1.17 for the week and I continue to like my long position in the Jan '06 40 calls.

The bullish put spread (sold the Jan 40 puts and bought the Jan 37.50 puts) on Briggs and Stratton (BGG)on which I brought in 45 cents a share is doing well. The stock closed well above 40 at $41.58 and has been moving gently upward.

The Jan '06 35 LEAPS calls on Yahoo (YHOO) are ok as the stock continues upward. The stock is pinching up into an ascending triangle. If it can break the resistance, it could be a very decent play.

I also entered an Aug 30 straddle on Nextel (NXTL). Straddles often take some time to unfold and so far this one is unsurprising.

The major indices were all up on decreasing volume. I don't know that I can reach any conclusion from that combination since this was a holiday week. We are coming into earnings season in January and that generally provides a lot of movement.

Have a safe and enjoyable New Year's Eve. When we look around at the world, aren't we fortunate? Happy New Year!

Sincerely,
Bill

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