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[Weekend Summary]

Dear Member:

Well, I executed a number of trades this week. All of them were profitable and some very profitable. My flurry of activity resulted from what I perceived to be a suggestion that the market was about to turn back up and then the actual turn up.

After being in my Dec 40 put position on QQQQ for two weeks, I sold for a 62% gain before commssions! I was only in my put position in Nasdaq Stock Market (NDAQ) for 2 days and walked away with a realized gain of $1.20 a share or 19.4% before commission.

I finally closed the put leg of my original Jul 60 straddle on Morgan Stanley (MS). Overall, the position showed a 10 cent a share gain.

I also closed the short legs on two of my straddles. On the Tech ETF (XLK) I bought back my Jan '07 22 calls and realized a before commission gain of $0.65 a share or 7.8% on that leg. I still hold the long Jan '08 15 calls as XLK moves back up. I also closed the short Dec '07 140 call leg on SPY and gained $1.30 a share on that leg. I'm still holding my Dec '07 120 calls as the SP-500 moves back up.

If the Dow continues to move up, I may have to adjust my 113/114 bear call spread on the "Diamonds" (DIA), but for now I don't need to act.

Sirius Satellite Radio (SIRI) finally hit a bottom and jumped. I have the Jan '08 $2.50 calls and earlier created a spread to reduce risk and bring in income by selling the Dec 6 calls. All looks well there.

My Micron (MU) spread is doing fine as MU continues in an upward channel. I do need to watch BBH as it is approaching the Jun 180 calls I sold to create a bearish call spread against my Jan '07 200 calls. I am considering rolling out the 200 calls to Jan '08 and have been looking for the right time for some time now.

The straddle on Conoco Phillips (COP) is ok for now, but I would really like to see a sharp move in either direction.

While there is no way to be certain, it does look as though the downward move may have halted for the time being. QQQQ, for example, closed just above resistance today and may offer a chance to make a little on an upward move now that I capitalized on the downdraft.

I should note that I always try to remember to say that my gain or loss is "before commissions" since each broker charges different commissions. Just so you know, I pay $1.25 a contract (minimum $12.95) to buy or sell contracts so it isn't a big deal for me. It is important, however, to be aware of what commissions are doing to my profit and loss since they are an expense of doing business.

I'll be volunteering with the county Sheriff as a Victim's Advocate this weekend so I'm hoping things are quiet. I hope you, your friends and your family have a wonderful holiday weekend.

Thank you for subscribing.

Bill

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