FORM 13F

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, D.C.  20549

                              ------------------

                              FORM 13F COVER PAGE

       Report for the Calendar Year or Quarter Ended        September 30, 2010

                Check here if Amendment:  [ ]; Amendment Number:
                                                                 -------

                                This Amendment:

                             [ ] is a restatement.

                        [ ] adds new holdings entries.

Institutional Investment Manager Filing this Report:

Name:                           Loews Corporation
------------------------------------------------------------------------------

Address:                 667 Madison Avenue    New York     New York     10065
------------------------------------------------------------------------------
                               (Street)        (City)        (State)     (Zip)

Form 13F File Number: 28-217

The institutional investment manager filing this report and the person by whom
it is signed hereby represent that the person signing the report is authorized
to submit it, that all information contained herein is true, correct and
complete, and that it is understood that all required items, statements,
schedules, lists and tables are considered integral parts of this form.

Person Signing this Report on Behalf of Reporting Manager:

Name:       Gary W. Garson
------------------------------------------------------------------------------

Title:      General Counsel and Senior Vice President
------------------------------------------------------------------------------

Phone:      212-521-2932
------------------------------------------------------------------------------

Signature, Place, and Date of Signing:

/s/ Gary W. Garson
------------------------------------------------------------------------------
(Signature)

Place:      667 Madison Avenue    New York     New York     10065
------------------------------------------------------------------------------
                  (Street)        (City)        (State)     (Zip)

Date:       November 12, 2010
------------------------------------------------------------------------------


                                  Page 1 of 17


  Loews Corporation ("Loews"), by virtue of its approximately 90% ownership of
voting securities of CNA Financial Corporation whose business address is 333
South Wabash Avenue , Chicago, Illinois 60604 ("CNA"), may be deemed to have
investment discretion regarding certain securities (the "CNA Securities") as
to which investment discretion is deemed to be exercised by CNA. CNA is
reporting on behalf of Loews regarding the CNA Securities.

      Report Type:

[ ]   13F HOLDINGS REPORT.

[ ]   13F NOTICE.

[X]   13F COMBINATION REPORT.

List of Other Managers Reporting for this Manager.

Form 13F File Number:  28-346

Name:  CNA Financial Corporation


                                  Page 2 of 17


                            FORM 13F SUMMARY PAGE

                                REPORT SUMMARY

Number of Other Included Managers:  NONE.

Form 13F Information Table Entry Total:  172

Form 13F Information Table Value Total:  $15,502.8 (million)

List of Other Included Managers:  NONE.


                                  Page 3 of 17






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

ABBOTT LABS           Common   002824100      7,314     140,000   SH              Sole                     140,000

AIR PRODS & CHEMS INC Common   009158106      3,313      40,000   SH              Sole                      40,000

ALCATEL-LUCENT-       Common   013904305        122      36,227   SH              Sole                      36,227
 SPONSORED ADR

ALLSTATE CORP         Common   020002101      9,378     297,256   SH              Sole                     297,256

ALVARION LIMITED      Common   M0861T100      1,178     640,000   SH              Sole                     640,000

AMERICAN EQUITY INVT  Common   025676206        105      10,219   SH              Sole                      10,219
 LIFE HL

AMGEN INC             Common   031162100      4,409      80,000   SH              Sole                      80,000

AMKOR TECHNOLOGY INC  Common   031652100        131      20,000   SH              Sole                      20,000

ANADARKO PETE CORP    Common   032511107        759      13,300   SH              Sole                      13,300

APACHE CORP           Common   037411105        399       4,080   SH              Sole                       4,080

ASSURANT INC          Common   04621X108      2,035      50,000   SH              Sole                      50,000

AURIZON MINES LTD     Common   05155P106      2,877     416,899   SH              Sole                     416,899

AUTOMATIC DATA        Common   053015103        841      20,000   SH              Sole                      20,000
 PROCESSING
                                      -------------
                          TOTAL       $      32,861
                                      -------------


                                                      Page 4 of 17 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

AVNET INC             Common   053807103        248       9,175   SH              Sole                       9,175

BANK OF NEW YORK      Common   064058100        321      12,295   SH              Sole                      12,295
 MELLON CORP

BARRICK GOLD CORP     Common   067901108     12,303     265,771   SH              Sole                     265,771

BAXTER INTERNATIONAL  Common   071813109        735      15,398   SH              Sole                      15,398
 INC

BEMIS COMPANY         Common   081437105      4,921     155,000   SH              Sole                     155,000

BOARDWALK PIPELINE    Common   096627104  3,353,791 102,719,466   SH              Sole                 102,719,466
 PARTNERS

BROADRIDGE FINANCIAL  Common   11133T103      7,620     333,200   SH              Sole                     333,200
 SOLUTIONS

BROCADE COMM SYS  INC Common   111621306      1,055     180,000   SH              Sole                     180,000

CALPINE CORP          Common   131347304        225      18,070   SH              Sole                      18,070

CAMECO CORP           Common   13321L108      1,109      40,000   SH              Sole                      40,000

CF INDUSTRIES         Common   125269100      4,966      52,000   SH              Sole                      52,000
 HOLDINGS INC

CHENIERE ENERGY INC   Common   16411R208         31      12,200   SH              Sole                      12,200

CHEVRON CORP          Common   166764100      9,726     120,000   SH              Sole                     120,000
                                      -------------
                          TOTAL       $   3,397,051
                                      -------------


                                                      Page 5 of 17 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

CIBER INC             Common   17163B102         42      13,991   SH              Sole                      13,991

CIENA CORP            Common   171779309        779      50,000   SH              Sole                      50,000

CISCO SYS INC         Common   17275R102      5,913     270,000   SH              Sole                     270,000

CITIGROUP INC         Common   172967101        393     100,401   SH              Sole                     100,401

CNA FINL CORP         Common   126117100  6,784,291 242,382,673   SH              Sole                 242,382,673

COMCAST CORP NEW      Common   20030N200      2,960     174,000   SH              Sole                     174,000

COTT CORPORATION      Common   22163N106      2,355     300,000   SH              Sole                     300,000

CVS CAREMARK CORP     Common   126650100      3,934     125,000   SH              Sole                     125,000

DENBURY RESOURCES     Common   247916208        556      35,000   SH              Sole                      35,000
 INC

DEVON ENERGY          Common   25179M103        486       7,500   SH              Sole                       7,500
 CORPORATION

DIAMOND OFFSHORE      Common   25271C102  4,750,990  70,104,620   SH              Sole                  70,104,620
 DRILLING INC

DRESSER-RAND GROUP    Common   261608103      1,291      35,000   SH              Sole                      35,000
 INC

DU PONT E I DE        Common   263534109     12,047     270,000   SH              Sole                     270,000
 NEMOURS & CO
                                      -------------
                          TOTAL       $  11,566,037
                                      -------------


                                                      Page 6 of 17 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

DUN & BRADSTREET      Common   26483E100      1,598      21,551   SH              Sole                      21,551
 CORP DEL NEW

DYNEGY INC -CL A      Common   26817G300        341      70,000   SH              Sole                      70,000

E M C CORP MASS       Common   268648102      4,062     200,000   SH              Sole                     200,000

ENERGIZER HLDGS INC   Common   29266R108      5,378      80,000   SH              Sole                      80,000

ENSCO INTL INC        Common   29358Q109        532      11,900   SH              Sole                      11,900

EXETER RESOURCE       Common   301835104      3,987     593,958   SH              Sole                     593,958

EXXON MOBIL CORP      Common   30231G102     14,480     234,350   SH              Sole                     234,350

FINISAR CORPORATION   Common   31787A507      2,142     114,000   SH              Sole                     114,000

GAMESTOP CORP         Common   36467W109      1,971     100,000   SH              Sole                     100,000

GAMMON GOLD INC       Common   36467T106      3,900     556,351   SH              Sole                     556,351

GENUINE PARTS CO      Common   372460105      6,243     140,000   SH              Sole                     140,000

GOLDCORP INC NEW      Common   380956409      6,789     156,000   SH              Sole                     156,000

GREEN PLAINS          Common   393222104      2,312     190,000   SH              Sole                     190,000
 RENEWABLE ENERG
                                      -------------
                          TOTAL       $      53,735
                                      -------------


                                                      Page 7 of 17 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

HARTE-HANKS INC       Common   416196103        126      10,764   SH              Sole                      10,764

HEWLETT PACKARD CO    Common   428236103     11,102     263,890   SH              Sole                     263,890

HOME DEPOT INC        Common   437076102      7,033     222,000   SH              Sole                     222,000

ILLINOIS TOOL WKS INC Common   452308109      5,878     125,000   SH              Sole                     125,000

INGERSOLL-RAND PLC    Common   G47791101        374      10,465   SH              Sole                      10,465

INTEL CORP            Common   458140100      5,760     300,000   SH              Sole                     300,000

INTERNATIONAL         Common   459200101     16,922     126,149   SH              Sole                     126,149
 BUSINESS MACHS

JAGUAR MINING INC     Common   47009M103      6,570     987,629   SH              Sole                     987,629

JDS UNIPHASE CORP     Common   46612J507      3,469     280,000   SH              Sole                     280,000

JOHNSON & JOHNSON     Common   478160104     12,571     202,883   SH              Sole                     202,883

KIMBER RESOURCES INC  Common   49435N101        592     641,515   SH              Sole                     641,515

KIMBERLY-CLARK CORP   Common   494368103      7,156     110,000   SH              Sole                     110,000

KOBEX MINERALS INC    Common   49989C105        241     238,285   SH              Sole                     238,285
                                      -------------
                          TOTAL       $      77,794
                                      -------------


                                                      Page 8 of 17 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

KRAFT FOODS INC       Common   50075N104      8,024     260,000   SH              Sole                     260,000

L-3 COMMUNICATIONS    Common   502424104        213       2,946   SH              Sole                       2,946
 HLDGS INC

LEXMARK INTL NEW      Common   529771107      2,231      50,000   SH              Sole                      50,000

LINCOLN NATL CORP IND Common   534187109        431      18,000   SH              Sole                      18,000

LOCKHEED MARTIN       Common   539830109      7,841     110,000   SH              Sole                     110,000

LOWES COS INC         Common   548661107      1,560      70,000   SH              Sole                      70,000

MAG SILVER CORP       Common   55903Q104      2,598     331,200   SH              Sole                     331,200

MARATHON OIL CORP     Common   565849106      4,502     136,000   SH              Sole                     136,000

MARTIN MARIETTA       Common   573284106      3,864      50,200   SH              Sole                      50,200
 MATERIALS

MASCO CORP            Common   574599106        151      13,675   SH              Sole                      13,675

MASTERCARD INC        Common   57636Q104      4,480      20,000   SH              Sole                      20,000
 CLASS A

MATTEL INC            Common   577081102      5,175     220,600   SH              Sole                     220,600

MEDIACOM              Common   58446K105        225      34,000   SH              Sole                      34,000
 COMMUNICATIONS CORP
                                      -------------
                          TOTAL       $      41,295
                                      -------------


                                                      Page 9 of 17 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

MICROSOFT CORP        Common   594918104     14,670     599,007   SH              Sole                     599,007

MIDWAY GOLD CORP      Common   598153104        115     197,679   SH              Sole                     197,679

MINEFINDERS CORP      Common   602900102      1,980     202,687   SH              Sole                     202,687

MOHAWK INDUSTRIES INC Common   608190104      2,665      50,000   SH              Sole                      50,000

MOTOROLA INC          Common   620076109        156      18,268   SH              Sole                      18,268

NATIONAL GRID PLC-SP  Common   636274300        234       5,482   SH              Sole                       5,482

NATIONAL OILWELL      Common   637071101      1,556      35,000   SH              Sole                      35,000
 VARCO INC

NATL PENN BCSHS INC   Common   637138108         65      10,400   SH              Sole                      10,400

NEWELL RUBBERMAID INC Common   651229106      5,343     300,000   SH              Sole                     300,000

NORTHROP GRUMMAN      Common   666807102        278       4,591   SH              Sole                       4,591
 CORP

NOVAGOLD RES INC      Convert  66987EAA5      4,506   4,000,000   PRN             Sole                   4,000,000
 NOTE 5.5% 5/1/15

NOVAGOLD              Common   66987E206      3,230     369,557   SH              Sole                     369,557
 RESOURCES INC

NYSE EURONEXT         Common   629491101      4,286     150,000   SH              Sole                     150,000
                                      -------------
                          TOTAL       $      39,084
                                      -------------


                                                      Page 10 of 17 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

OCCIDENTAL            Common   674599105        932      11,900   SH              Sole                      11,900
PETROLEUM CORP

OMNICOM GROUP INC     Common   681919106        221       5,600   SH              Sole                       5,600

ORACLE CORP           Common   68389X105      7,060     262,950   SH              Sole                     262,950

PENNEY J. C. CO INC   Common   708160106        268       9,845   SH              Sole                       9,845

PEPSICO INC           Common   713448108      5,342      80,400   SH              Sole                      80,400

PFIZER INC            Common   717081103        833      48,530   SH              Sole                      48,530

PITNEY BOWES INC      Common   724479100      6,396     299,176   SH              Sole                     299,176

PMC-SIERRA INC        Common   69344F106      2,944     400,000   SH              Sole                     400,000

PPL CORP              Common   69351T106      1,816      66,701   SH              Sole                      66,701

PROGRESS ENERGY INC   Common   743263105        302       6,790   SH              Sole                       6,790

PRUDENTIAL FINANCIAL  Common   744320102      1,355      25,000   SH              Sole                      25,000
 INC

RAYTHEON CO           Common   755111507      4,571     100,000   SH              Sole                     100,000

REINSURANCE GROUP     Common   759351604        386       8,000   SH              Sole                       8,000
 OF AMERICA
                                      -------------
                          TOTAL       $      32,426
                                      -------------


                                                      Page 11 of 17 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

RITE AID CORP         Common   767754104         40      42,245   SH              Sole                      42,245

RPM INTL INC          Common   749685103      3,972     199,400   SH              Sole                     199,400

RUBICON MINERALS CORP Common   780911103      1,133     267,850   SH              Sole                     267,850

SEALED AIR CORP NEW   Common   81211K100      3,822     170,000   SH              Sole                     170,000

SEALY CORP            Common   812139301         29      11,732   SH              Sole                      11,732

SILICON IMAGE INC     Common   82705T102        717     150,000   SH              Sole                     150,000

SILVER STANDARD       Common   82823L106        479      23,971   SH              Sole                      23,971
 RESOURCES

SONOCO PRODUCTS CO    Common   835495102      3,344     100,000   SH              Sole                     100,000

SPDR KBW BANK ETF     Common   78464A797      6,885     300,000   SH              Sole                     300,000

STILLWATER MNG CO     Common   86074Q102        337      20,000   SH              Sole                      20,000

SYMANTEC CORP         Common   871503108        227      15,000   SH              Sole                      15,000

SYSCO CORP            Common   871829107      5,704     200,000   SH              Sole                     200,000

THORATEC CORP         Common   885175307      4,364     118,022   SH              Sole                     118,022
                                      -------------
                          TOTAL       $      31,053
                                      -------------


                                                      Page 12 of 17 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

TRAVELERS COS INC     Common   89417E109     18,912     363,000   SH              Sole                     363,000

TREX COMPANY INC      Common   89531P105      1,764      92,500   SH              Sole                      92,500

TYCO ELECTRONICS LTD  Common   H8912P106        224       7,675   SH              Sole                       7,675

UBS AG                Common   H89231338        189      11,125   SH              Sole                      11,125

UNITED CONTINENTAL    Common   910047109        355      15,000   SH              Sole                      15,000
 HOLDINGS

UNITED PARCEL SERVICE Common   911312106      3,335      50,000   SH              Sole                      50,000
 INC

UNITED STATES STL     Common   912909108      1,315      30,000   SH              Sole                      30,000
 CORP NEW

VARIAN MED SYS INC    Common   92220P105      1,210      20,000   SH              Sole                      20,000

VULCAN  MATERIALS     Common   929160109      2,954      80,000   SH              Sole                      80,000

WASTE MANAGEMENT INC  Common   94106L109      7,684     215,000   SH              Sole                     215,000

WENDY'S/ARBY'S        Common   950587105      1,359     300,000   SH              Sole                     300,000
 GROUP INC-A

WESTERN DIGITAL CORP  Common   958102105      4,530     159,550   SH              Sole                     159,550

WESTPORT              Common   960908309      2,811     159,700   SH              Sole                     159,700
 INNOVATIONS INC

WHIRLPOOL CORP        Common   963320106        810      10,000   SH              Sole                      10,000
                                      -------------
                          TOTAL       $      47,452
                                      -------------


                                                      Page 13 of 17 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

WHITING PETE CORP     Common   966387102        487       5,100   SH              Sole                       5,100
 NEW

WILLIAMS COS INC DEL  Common   969457100        246      12,892   SH              Sole                      12,892

XEROX CORP            Common   984121103      9,429     911,000   SH              Sole                     911,000

ZHONE TECHNOLOGIES    Common   98950P884      1,484     720,380   SH              Sole                     720,380
 INC

ZOLTEK COMPANIES INC  Common   98975W104        680      70,000   SH              Sole                      70,000
                                      -------------
                        TOTAL         $      12,326
                                      -------------


                                                      Page 14 of 17 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

3M CO                 Common   88579Y951      5,203      60,000   SH     Put      Sole                      60,000

ALLSTATE CORP         Common   020002901      1,262      40,000   SH     Call     Sole                      40,000

ALLSTATE CORP         Common   020002951      6,310     200,000   SH     Put      Sole                     200,000

AUTOMATIC DATA        Common   053015953      8,406     200,000   SH     Put      Sole                     200,000
 PROCESSING

BARRICK GOLD CORP     Common   067901908      7,406     160,000   SH     Call     Sole                     160,000

BARRICK GOLD CORP     Common   067901958     14,813     320,000   SH     Put      Sole                     320,000

BROCADE COMM SYS  INC Common   111621906      1,172     200,000   SH     Call     Sole                     200,000

CAMECO CORP           Common   13321L958      4,991     180,000   SH     Put      Sole                     180,000

CIENA CORP            Common   171779909        156      10,000   SH     Call     Sole                      10,000

CIENA CORP            Common   171779959      1,557     100,000   SH     Put      Sole                     100,000

CLIFFS  NATURAL       Common   18683K951      7,031     110,000   SH     Put      Sole                     110,000
 RESOURCES INC

DISNEY WALT CO        Common   254687906      3,310     100,000   SH     Call     Sole                     100,000

DISNEY WALT CO        Common   254687956      6,620     200,000   SH     Put      Sole                     200,000
                                      -------------
                          TOTAL       $      68,237
                                      -------------


                                                      Page 15 of 17 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

DU PONT E I DE        Common   263534959      4,462     100,000   SH     Put      Sole                     100,000
 NEMOURS & CO

E M C CORP MASS       Common   268648952      4,062     200,000   SH     Put      Sole                     200,000

GOLDCORP INC NEW      Common   380956909      6,963     160,000   SH     Call     Sole                     160,000

INTEL CORP            Common   458140950      7,680     400,000   SH     Put      Sole                     400,000

INTERNATIONAL         Common   459200951     14,755     110,000   SH     Put      Sole                     110,000
 BUSINESS MACHS

ITT CORP              Common   450911952      3,746      80,000   SH     Put      Sole                      80,000

ITT EDUCATIONAL       Common   45068B959      2,108      30,000   SH     Put      Sole                      30,000
 SERVICES INC

JOHNSON & JOHNSON     Common   478160954      9,914     160,000   SH     Put      Sole                     160,000

LOWES COS INC         Common   548661957      1,783      80,000   SH     Put      Sole                      80,000

MARTIN MARIETTA       Common   573284956      6,158      80,000   SH     Put      Sole                      80,000
 MATERIALS

MCKESSON CORP         Common   58155Q953      2,471      40,000   SH     Put      Sole                      40,000

MICROSOFT CORP        Common   594918904      2,449     100,000   SH     Call     Sole                     100,000

MICROSOFT CORP        Common   594918954      7,347     300,000   SH     Put      Sole                     300,000
                                      -------------
                          TOTAL       $      73,898
                                      -------------


                                                      Page 16 of 17 Pages






                                                                                        
Column                Column   Column     Column      Column                      Column      Column   Column
1:                    2:       3:         4:          5:                          6:          7:       8:
                      Title                           Shares or                                        Voting Authority(Shares)
                      of       CUSIP      Value       Principal                   Investment  Other    -------------------------
Name of Issuer        Class    Number     (x$1000)    Amount      SH/PRN Put/Call Discretion  Managers Sole   Shared    None

ORACLE CORP           Common   68389X955      2,685     100,000   SH     Put      Sole                     100,000

PENNEY J. C. CO INC   Common   708160956      2,718     100,000   SH     Put      Sole                     100,000

SEAGATE TECHNOLOGY    Common   G7945J904        942      80,000   SH     Call     Sole                      80,000

TARGET CORP           Common   87612E956      2,138      40,000   SH     Put      Sole                      40,000

UNITED PARCEL SERVICE Common   911312956      5,335      80,000   SH     Put      Sole                      80,000
 INC

UNITED STATES STL     Common   912909958      1,315      30,000   SH     Put      Sole                      30,000
 CORP NEW

VARIAN MED SYS INC    Common   92220P955      2,420      40,000   SH     Put      Sole                      40,000

VULCAN  MATERIALS     Common   929160959      2,954      80,000   SH     Put      Sole                      80,000

WHIRLPOOL CORP        Common   963320956      3,238      40,000   SH     Put      Sole                      40,000

ZOLTEK COMPANIES INC  Common   98975W904      5,832     600,000   SH     Call     Sole                     600,000
                                      -------------
                        TOTAL         $      29,577
                                      -------------
              AGGREGATE TOTAL         $  15,502,826
                                      =============

                                                      Page 17 of 17 Pages