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INITIAL JULY RECOMMENDATIONS

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We are recommending the following four (4) credit spreads to start the JULY RECOMMENDATED LIST

We are recommending spreads on the following issues.


SUN - Sunoco, Inc., through its subsidiaries, engages in the manufacturing and marketing of various petroleum products, including fuels, lubricants, and some petrochemicals in the United States. It also engages in the manufacture of chemicals with interests in logistics and cokemaking.

ANF - Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer in the United States and Canada. Its stores sell casual apparel, such as knit shirts, graphic t-shirts, jeans, woven shirts, and shorts; and personal care and other accessories for men, women, and kids under the Abercrombie & Fitch, abercrombie, Hollister, and RUEHL brands.

KLAC - KLA-Tencor Corporation engages in the design, manufacture, and marketing of yield management and process monitoring systems for the semiconductor industry. It markets and sells its hardware consisting of patterned and unpatterned wafer inspection, optical overlay metrology, e-beam review, reticle and photomask inspection, spectroscopic and e-beam-based CD metrology, and film and surface measurement tools, as well as its yield analysis and defect classification software.

AXP - American Express Company, together with its subsidiaries, operates as a payments, network, and travel company worldwide. The company issues cards to consumers, small businesses, and corporations through its own network, as well as by third party banks and other institutions in approximately 45 currencies

We are recommending the following specific four (4) credit spreads consisting of three (3) call credit spreads and one (1) put credit spread


Call Credit Spreads


SUN $65.90

BUY SUN-GP SUN JUL $80.00 CALL DEBIT = $0.45
SELL SUN-GO SUN JUL $75.00 CALL CREDIT= $0.90
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
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $70.45

2.MAXIMUM EXPOSURE is: $5.00 Which is the difference between the strike prices


3. STOP LIMIT is below and will be placed on the SHORT STRIKE PRICE:
SUN-GO STOP LIMIT EXIT >> = $2.00
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


ANF $56.53

BUY ANF-GM ANF JUL $65.00 CALL DEBIT = $0.40
SELL ANF-GZ ANF JUL $62.50 CALL CREDIT= $0.70
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 $2,200.00
RETURN ON INVESTMENT= 11.11%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $59.52
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 STOPS ON THOSE POSITIONS. THEY WILL GO ON THE WATCH LIST AND BE FOLLOWED WITH INSTRUCTIONS AS TO HOW TO PROCEED OR/WHAT EXIT POINT NEEDS TO BE ESTABLISHED

KLAC $40.55

BUY KCQ-GT KLAC JUL $47.50 CALL DEBIT = $0.20
SELL KCQ-GI KLAC JUL $45.00 CALL CREDIT= $0.50
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 $2,200.00
RETURN ON INVESTMENT= 11.11%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $42.78
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 STOPS ON THOSE POSITIONS. THEY 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 Spread

AXP $53.46

SELL AXP-SJ AXP JUL $50.00 PUT CREDIT= $0.40
BUY AXP-SI AXP JUL $45.00 PUT DEBIT $0.10
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 $4,700.00
RETURN ON INVESTMENT= 6.38%
EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE : $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:
AXP-SJ STOP LIMIT EXIT >> = $1.10
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 positions are filled these will be our first four (4) recommendations for JULY.





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