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1 NEW Position added bringing recommendations total to 10 for January

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One Additional January Recommendation bringing our total recommendations to 10 for January


We are recommending a call credit spread in the following issue:

SHLD - Sears Holdings Corporation
through its subsidiaries, operates as a retailer in the United States. It offers home appliances, tools, lawn and garden products, home electronics, and automotive repair and maintenance products. The company offers its products in various brands, including Kenmore, Craftsman and DieHard, Lands' End, Jaclyn Smith, Martha Stewart Everyday, and Joe Boxer, as well as the Apostrophe and Covington. As of December 6, 2005, the company operated 3,900 full-line and specialty retail stores in the United States and Canada. Sears Holdings was founded in 1899 is headquartered in Hoffman Estates, Illinois.

We are recommending the specific spread below:

Credit Call Spread

SHLD $118.20

BUY KTQ-AX SHLD JAN $135.00 CALL DEBIT = $0.40
SELL KTQ-AY SHLD JAN $130.00 CALL CREDIT= $0.75
NET CREDIT = $0.35
INITIAL "NET- CREDIT TARGET= $0.35 or $35.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.35 = $350.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,650.00
RETURN ON INVESTMENT= 7.53%
EXIT STRATEGY = NET DEBIT STOP = $1.40

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