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Portfolio Activity - New Positions

HAVING TROUBLE PRINTING?
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The Rally Continues!

Stocks opened higher Monday as concerns over inflation subsided in conjunction with declining crude futures. Analysts said growing OPEC production and rising U.S. supplies might lead to lower oil prices in the near-term and the news translated to additional gains in the broader equity averages.

Unfortunately, the upside activity also reduced the spread credit in our new position in WellPoint (NYSE:WLP) so we are once again "on the prowl" for some additional portfolio positions. There are a number of favorable candidates among the "supplemental" plays and our focus is currently on bullish spreads in:

Stock Stock Exp Long Sold Target Cost Margn Max
Symbol Price Mon Put Put Credit Basis Maint Gain

SHLD 135.24 MAY 115.0 120.0 0.40 119.60 $2300 $200
CI 91.98 MAY 80.0 85.0 0.40 84.60 $2300 $200

and bearish spreads in:

Stock Stock Exp Long Sold Target Cost Margn Max
Symbol Price Mon Call Call Credit Basis Maint Gain

MUR 89.09 MAY 100.0 95.0 0.40 95.40 $2300 $200
OIH 89.03 MAY 100.0 95.0 0.45 95.45 $2275 $225
LEN 51.47 MAY 60.0 55.0 0.50 55.50 $2250 $250

At first glance, all of these plays appear viable but we'll need to review each issue more thoroughly before making an "official" recommendation for the portfolio.

MCM Staff

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