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JUNE ADDED RECOMMENDATIONS 5-28-09

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We are adding four (4) positions to our JUNE recommended list

We are recommending two (2) call spreads and two (2) put spreads

We are recommending credit spreads on the following issues:

OSTK - Overstock.com, Inc. operates as an online retailer primarily in the United States. It offers bed-and-bath goods, furniture, kitchenware, watches, jewelry, computers and electronics, sporting goods, apparel, and designer accessories. The Company also sells books, magazines, CDs, DVDs, videocassettes, and video games. In addition, it provides air, hotel, and car reservation services, as well as cruise and vacation packages.

MRVL - Marvell Technology Group, Ltd. provides semiconductors of analog, mixed-signal, digital signal processing, and embedded microprocessor integrated circuits worldwide. Its product portfolio comprises switching, transceiver, wireless, PC connectivity, gateways, communications controller, storage, and power management solutions that serve various applications used in business enterprise, consumer electronics, and emerging markets.

LEND - Accredited Home Lenders Holding Co. and its subsidiaries operate as a mortgage banking company in the United States and Canada. The company originates, finances, securitizes, services, and sells nonprime mortgage loans secured by residential real estate. It originates loans through independent mortgage brokers and direct sales force. Its wholesale channel originates nonprime mortgage loans through relationships with businesses that broker mortgage loans, including small mortgage bankers, local banks, and businesses that only broker mortgage loans.

BHI - Baker Hughes Incorporated provides wellbore-related products and services to oil and natural gas industry worldwide. The company operates in seven divisions: Baker Hughes Drilling Fluids (BHDF), Hughes Christensen, INTEQ, Baker Atlas, Baker Oil Tools (BOT), Baker Petrolite, and Centrilift. BHDF division provides drilling fluids, completion fluids, and fluids environmental services; and equipment and services to separate the drill cuttings from the drilling fluids and re-inject the processed cuttings into prepared well, or to transport and dispose of the cuttings.

We are recommending the following specific credit spreads


Call credit spreads


OSTK $22.66

BUY QKT-FF OSTK JUN $30.00 CALL DEBIT = $0.15
SELL QKT-FE OSTK JUN $25.00 CALL CREDIT= $0.60
NET CREDIT = $0.45
 

INITIAL "NET- CREDIT TARGET= $0.45 or $45.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.45 = $450.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,550.00
RETURN ON INVESTMENT= 9.89%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE $5.00
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $23.83
MAXIMUM EXPOSURE is: $5.00 Which is the difference between the strike prices


2.STOP LIMIT will be placed on the SHORT STRIKE PRICE:
QKT-FE STOP LIMIT EXIT >> = $2.40
If and when the STOP LIMIT IS EXECUTED - A contingency order should be in place to than SELL the LONG SIDE
of the Spread and close the position with a Market Order if and when the SHORT side needs to be STOPPED OUT


MRVL $49.61

BUY UVM-FY MRVL JUN $57.50 CALL DEBIT = $0.30
SELL UVM-FK MRVL JUN $55.00 CALL CREDIT= $0.60
NET CREDIT = $0.30
 

INITIAL "NET- CREDIT TARGET= $0.30 or $30.00

POTENTIAL PROFIT (x 10 CONTRACTS @ $0.30 = $300.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,250.00
RETURN ON INVESTMENT= 11.11%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE $2.50
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $52.31
2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES
MAXIMUM EXPOSURE is: $2.50 Which is the difference between the strike prices
THIS WILL BE OUR MAXIMUM EXPOSURE - WE WILL NOT USE A STOP ON
THIS POSITION IT WILL GO ON THE WATCH LIST AND BE FOLLOWED WITH INSTRUCTIONS
AS TO HOW TO PROCEED OR/WHAT EXIT POINT NEEDS TO BE ESTABLISHED


Put credit spreads

LEND $55.58

SELL QFW-RJ LEND JUN $50.00 PUT CREDIT= $0.50
BUY QFW-RI LEND JUN $45.00 PUT DEBIT $0.15
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 = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE is $5.00
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE DROPS TO: 52.00


2. A STOP LIMIT will be placed on the SHORT STRIKE PRICE:
QFW-RJ STOP LIMIT EXIT >> = $1.75
If and when the STOP LIMIT IS EXECUTED - A contingency order should be in place to than SELL the LONG SIDE
of the Spread and close the position with a Market Order if and when the SHORT side needs to be STOPPED OUT

BHI $84.82

SELL BHI-RP BHI JUN $80.00 PUT CREDIT= $0.95
BUY BHI-RA BHI JUN $72.50 PUT DEBIT $0.20
NET CREDIT = $0.75
 

INITIAL "NET- CREDIT TARGET= $0.75 or $75.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.75 = $750.00
MARGIN REQUIRE. (x 10 CONTRACTS $6,750.00
RETURN ON INVESTMENT= 11.11%
EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE is $7.50
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE DROPS TO: $82.00


2. A STOP LIMIT will be placed on the SHORT STRIKE PRICE:
BHI-RP STOP LIMIT EXIT >> = $2.85
If and when the STOP LIMIT IS EXECUTED - A contingency order should be in place to than SELL the LONG SIDE
of the Spread and close the position with a Market Order if and when the SHORT side needs to be STOPPED OUT


When these position are filled it will bring our JUNE RECOMMENDED POSITIONS to ten (10)



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