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SEPTEMBER CALL AND PUT CREDIT SPREADS

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Here are the initial Call and Put credit spread recommendations for the upcoming September expiration

September Call spread Recommendations

1. BMHC $72.76 - Building Materials Holding Corporation - BMHC

BUY BGU-IQ BMHC SEPT 85 CALL DEBIT = $0.80

SELL BGU-IP BMHC SEPT 80 CALL CREDIT= $1.65

NET CREDIT = $0.85

INITIAL "NET- CREDIT TARGET= $0.85 or $85.00

POTENTIAL PROFIT (x 10 CONTRACTS @ $0.85 = $850.00

MARGINS REQUIRE. (X 10 CONTRACTS $4,150.00

RETURN ON INVESTMENT= 20.48%

EXIT STRATEGY = STOP DEBIT $1.70

2. TOL $50.09 Toll Brothers - TOL

BUY TOL-IL TOL SEPT $60.00 CALL DEBIT = $0.25

SELL TOL-IY TOL SEPT $57.50 CALL CREDIT= $0.50

NET CREDIT = $0.25

INITIAL "NET- CREDIT TARGET= $0.25 or $25.00

POTENTIAL PROFIT (x 10 CONTRACTS @ $0.25 = $250.00

MARGIN REQUIRES. (X 10 CONTRACTS $2,250.00

RETURN ON INVESTMENT= 11.11%

EXIT STRATEGY = STOP DEBIT $0.75

3. EK $25.99 Eastman Kodak - EK

BUY EK-IF EK SEPT $30.00 CALL DEBIT = $0.20

SELL EK-IY EK SEPT $27.50 CALL CREDIT= $0.45

NET CREDIT = $0.25

INITIAL "NET- CREDIT TARGET= $0.25 or $25.00

POTENTIAL PROFIT (x 10 CONTRACTS @ $0.25 = $250.00

MARGIN REQUIRES. (X 10 CONTRACTS $2,250.00

RETURN ON INVESTMENT= 11.11%

EXIT STRATEGY = STOP DEBIT $0.75

SEPTEMEBER PUT SPREAD RECOMMENDATIONS

4. GSF $46.52 Global Santa Fe Corp.

BUY GSF-UV GSF SEP $42.50 PUT CREDIT= $0.40

SELL LQH-UG GSF SEP $40.00 PUT DEBIT $0.20

NET CREDIT = $0.20

INITIAL "NET- CREDIT TARGET= $0.20 or $20.00

POTENTIAL PROFIT (x 10 CONTRACTS @ $0.20 = $200.00

MARGINS REQUIRE. (X 10 CONTRACTS $2,700.00

RETURN ON INVESTMENT= 7.41%

EXIT STRATEGY = STOP DEBIT $0.75

We will be adding more as the week gets closer to the August expiration date

5. BTU $66.37 Peabody Energy Corp.

BUY BTU-UL BTU SEP $60.00 PUT CREDIT= $0.80

SELL BTU-UK BTU SEP $55.00 PUT DEBIT $0.30

NET CREDIT = $0.50

INITIAL "NET- CREDIT TARGET= $0.50 or $50.00

POTENTIAL PROFIT (x 10 CONTRACTS @ $0.50 = $500.00

MARGIN REQUIRES. (X 10 CONTRACTS $5,500.00

RETURN ON INVESTMENT= 9.09%

EXIT STRATEGY = STOP DEBIT $1.10

6. CELG $46.95 CELEGENE

BUY LQH-UH CELG SEP $40.00 PUT CREDIT= $0.70

SELL LQH-UG CELG SEP $35.00 PUT DEBIT $0.20

NET CREDIT = $0.50

INITIAL "NET- CREDIT TARGET= $0.50 or $50.00

POTENTIAL PROFIT (x 10 CONTRACTS @ $0.50 = $500.00

MARGINS REQUIRE. (X 10 CONTRACTS $5,500.00

RETURN ON INVESTMENT= 9.09%

EXIT STRATEGY = STOP DEBIT $1.10

We will have more as the August expiration draws to a close.

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