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ALL RECOMMENDATIONS ALL CURRENTLY OUT OF THE MONEY

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GREAT NEWS! All ten (10) of our credit spread recommendations are currently out of the money.

Here are the current Open Call and Put credit spread recommendations
for the month of September expiration. All 10 of our recommendations are doing
extremely well thus far, as we head into the last 21 days of the September expiration.

We are very happy to report that ALL 10 positions are out of the money and away from the strike prices anywhere from $2.50 to $10.75

See individual positions below with the credits we received with the initial price the stock was trading at when we executed the spread and the current price that the stock is trading at the close of Aug 26, 2005 (Friday)

Call Positions

1. Price of underlying at spread execution BMHC $72.76 - Currently: $75.12
$5.12 out of the money
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

2. Price of the underlying at spread execution TOL $50.09 - Currently:$46.75
$10.75 out of the money
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

3. Price of the underlying at spread execution EK $25.99 - Currently:$25.00
$2.50 out of the money
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

4. Price of the underlying at spread execution OXY $78.40 - Currently: $78.17
$6.83 out of the money
Occidental Petroleum

BUY OXY-IR OXY SEP 90 CALL DEBIT = $0.15
SELL OXY-IQ OXY SEP 85 CALL CREDIT= $0.50
NET CREDIT = $0.40


PUT POSITIONS

5. Price of the underlying at spread execution GSF $46.52 - Currently: $46.28
$3.28 out of the money
Global Santa Fe Corp.

SELL GSF-UV GSF SEP $42.50 PUT CREDIT= $0.40
BUY GSF- UH GSF SEP $40.00 PUT DEBIT $0.20
NET CREDIT = $0.20

6. Price of the underlying at spread execution BTU $66.37 - Currently: $64.72
$4.72 out of the money
Peabody Energy Corp.

SELL BTU-UL BTU SEP $60.00 PUT CREDIT= $0.80
BUY BTU-UK BTU SEP $55.00 PUT DEBIT $0.30
NET CREDIT = $0.50

7. Price of the underlying at spread execution CELG $46.95 - Currently: $48.88
$4.88 out of the money
CELEGENE

SELL LQH-UH CELG SEP $40.00 PUT CREDIT= $0.70
BUY LQH-UG CELG SEP $35.00 PUT DEBIT $0.20
NET CREDIT = $0.50

8. Price of the underlying at spread execution MSTR $76.90 - Currently: $74.10
$9.10 out of the money
Microstrategy

SELL EOU-UM MSTR SEP 65 PUT CREDIT = $0.90
BUY EOU-UL MSTR SEP 60 PUT DEBIT = $0.40
NET CREDIT = $0.50

9. Price of the underlying at spread execution AGN 91.00 - Currently: $92.83
$7.83 out of the money
Allergen

SELL AGN-UQ AGN SEP 85 PUT CREDIT= $0.55
BUY AGN-UP AGN SEP 80 PUT DEBIT = $0.20
NET CREDIT = $0.35

10. Price of the underlying at spread execution AAPL $46.00 - Currently: $45.74
$2.24 out of the money
Apple Computer

SELL QAA-UV AAPL SEP 42.5 PUT CREDIT = $0.60
BUY AAQ-UH AAPL SEP 40 PUT DEBIT = $0.20
NET CREDIT = $0.40


We are currently holding our current positions and not making anymore recommendations at this time. We will monitoring all positions and will inform you of any issues that might
be needed to be put on our watch list which currently there are none

CURRENT POSITIONS: 10

POSITIONS POSITIVE: 10
POSITIONS ON THE WATCH LIST: 0 (ZERO)

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