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TWO ADDITION JULY RECOMMENDATIONS 7-10-06

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We are adding the following two(2) credit spreads to our JULY RECOMMENDED LIST

We are recommending spreads on the following issues:

MSTR - MicroStrategy Incorporated, through its subsidiaries, provides business intelligence software primarily in the United States. It offers MicroStrategy 8 that provides central management of security, administration, development, and deployment for business executives, report consumers, and business managers, as well as power users and analysts. The company also offers MicroStrategy Intelligence Server for analysis of multi-terabyte databases; MicroStrategy Report Services, which delivers production and operational reports, managed metrics reports, and scorecards; and MicroStrategy 8 OLAP Services that combine the speed and interactivity of multidimensional OLAP analysis with the analytical power and depth of relational OLAP. It also provides MicroStrategy Web for reporting and analysis; MicroStrategy Narrowcast Server that distributes personalized business information to recipients via email, printers, file servers, portals, wireless devices, fax, and phone; and MicroStrategy Office enables users to run , edit, and format any MicroStrategy report.

MFLX - Multi-Fineline Electronix, Inc. engages in the engineering, design, and manufacture of flexible printed circuit boards and value-added component assembly solutions for electronics industry. Its products include mobile phone and smart mobile devices, bar code scanners, personal digital assistants, computer-storage products, printed circuits for medical applications, and blood oxygen sensors.

We are recommending the following specific spreads

Call Credit spreads

MSTR $83.66

BUY EOU-GS MSTR JUL $95.00 CALL DEBIT = $0.35
SELL EOU-GR MSTR JUL $90.00 CALL CREDIT= $1.00
NET CREDIT = $0.65
 

INITIAL "NET- CREDIT TARGET= $0.65 or $65.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.65 = $650.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,350.00
RETURN ON INVESTMENT= 14.94%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $86.83

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

STOP LIMIT is below will be placed on the SHORT STRIKE PRICE:
EOU-GR STOP LIMIT EXIT >> = $3.00

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

MFLX $27.40

BUY FUX-GG MFLX JUL $35.00 CALL DEBIT = $0.10
SELL FUX-GF MFLX JUL $30.00 CALL CREDIT= $0.60
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= 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: $28.70

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

STOP LIMIT is below
on the SHORT STRIKE PRICE:
FUX-GF STOP LIMIT EXIT >> = $1.80

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



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