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ADDITIONAL JULY RECOMMENDATIONS 7-6-06

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We are recommending the following recommendation to our JULY RECOMMENDED LIST.

We are recommending credit spreads on the following issues:


CNX - CONSOL Energy, Inc. engages in the production of multifuel energy and provision of energy services primarily to electric power generation industry in the United States. It involves in the mining, preparation, and marketing of steam coal, primarily to power generators, as well as metallurgical coal to metal and coke producers.

TSO - Tesoro Corporation and its subsidiaries engage in refining and marketing petroleum products in the United States. It operates in two segments, Refining and Retail. The Refining segment manufactures and sells gasoline and gasoline blendstocks, jet fuel, diesel fuel, and heavy fuel oils to the commercial customers primarily in the midcontinental and the western United States.

The following specific put credit spreads are being recommended:


Put spreads


CNX $47.75

SELL CNX-SV CNX JUL $42.50 PUT CREDIT= $0.45
BUY CNX-SU CNX JUL $37.50 PUT DEBIT $0.15
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: $45.50


THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:

CNX POSITION STOP BELOW
CNX-SV STOP LIMIT EXIT >> = $1.50
If and when the STOP LIMIT IS EXECUTED - A contingency order should be in place to then 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

TSO $75.03

SELL TSO-SN TSO JUL $70.00 PUT CREDIT= $0.70
BUY TSO-SM TSO JUL $65.00 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
MARGIN REQUIRE. (x 10 CONTRACTS $4,500.00
RETURN ON INVESTMENT= 8.70%
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: $73.00


THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:

TSO POSITION STOP BELOW
TSO-SN STOP LIMIT EXIT >> = $2.00
If and when the STOP LIMIT IS EXECUTED - A contingency order should be in place to then 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





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