BASED ON MARKET CONDITIONS, the following are examples of strategies we are currently considering at Securities & Investment Planning Company.

However, these strategies may not be suitable for everyone. Prior to using these strategies, you should consult your investment advisor or registered representative. These strategies are updated regularly. The date above the text will tell you when this strategy was posted.

End of the year jockeying... December 26, 2001.....

The shortened trading week and end of year maneuvering may bring some added volatility. Offsetting this will be fewer and fewer players as the week closes. Option premiums seem to be contracting possibly indicating a lack of direction and a trading range

Strategy for February 1, 2002

Tough week on wall street. The markets spent the week trying to figure out its direction. Economic news and the Fed reported some good news. The Fed appears to be through cutting (for now, as expected) and unemployment was down (a surprise) and good news on the GDP front. Still, the market was rumor driven early in the week where fears of "accounting irregularities and Asbestos concerns" seemed to infect several stocks. Later, the market spent 2 days recovering (nicely) and a relatively quiet day today. Option volatility climbed significantly after coming off some very low areas early and that provided for opportunity to put on some 1:1 call spreads at very attractive prices. Our candidates for this strategy had to fit 2 major tests beside being fundamentally attractive. The positions needed to withstand a 30% downside move in the underlying security and still have a return (before commission and taxes) of 30-70%. Stocks like AOL, TXN, JPM, TYC, SLB, GE fit this bill for us.

Happy trading and stay tuned... we will be sharing more regularly!

If you have comments or questions about our strategies, e-mail privateclientservices@siponline.com.

To learn more about areas of expertise and the general approaches that underlie our current strategies, go to About Strategies.