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ICORRECTED INITIAL NEW PLAYS FOR AUGUST Monthly Cash Machine 7-14-06

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KBH trade is an AUGUST trade, as most of you have figured out by the SYMBOL
so you should have had no problem with the trade.

However, just to be sure the KBH spread is an AUGUST trade note change below. But you should have had no problem with trade as SYMBOL is CORRECT



WE are recommending the following spreads for the AUGUST RECOMMENDED LIST

We are recommending credit spreads on the following issues:

KBH - KB Home operates as a builder of single-family homes in the United States and France. The company operates in two segments, Construction and Financial Services. The Construction segment's activities include acquisition and development of land for residential purposes and offering a variety of homes for entry-level, move-up, luxury, and active adult homebuyers. This segment also builds commercial projects and high-density residential properties, such as condominium complexes.

LM - Legg Mason, Inc. operates as an asset management company worldwide. The company, through its subsidiaries, provides investment management and related services to institutional and individual clients, company-sponsored mutual funds, and other investment vehicles. It operates in three divisions: Mutual Funds/Managed Services, Institutional, and Wealth Management. The Mutual Funds/Managed Services division operates mutual funds business; and provides asset management services to retail separately managed account programs, such as wrap programs.


We are recommending specifically the following spreads:

Call Credit spreads

KBH 39.92

BUY KBH-HJ KBH AUG $50.00 CALL DEBIT = $0.15
SELL KBH-HI KBH AUG $45.00 CALL CREDIT= $0.50
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
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $42.50


EQUITY INDEXES
A STOP LIMIT will be placed on the SHORT STRIKE PRICE on any EQUITY OPTION that has a STRIKE PRICE DIFFERENCE OF $5.00 or MORE. ( IF INDEX OR HOLDER, WE WILL ADVISE WHEN STOP SHOULD BE UTILIZED BY BLOG. THE STOP LIMIT ON THIS POSITION IS NOTED BELOW: (NO STOP if INDEX on HOLDER .
BUY POSITION STOP BELOW
STOP LIMIT EXIT = KBH-HI >>> $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

LM $94.44

BUY LM-HB LM AUG $110.00 CALL DEBIT = $0.40
SELL LM-HA LM AUG $105.00 CALL CREDIT= $0.90
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: $102.00


EQUITY INDEXES
A STOP LIMIT will be placed on the SHORT STRIKE PRICE on any EQUITY OPTION that has a STRIKE PRICE DIFFERENCE OF $5.00 or MORE. ( IF INDEX OR OLDER, WE WILL ADVISE WHEN STOP SHOULD BE UTILIZED BY BLOG.
THE STOP LIMIT ON THIS POSITION IS NOTED BELOW: (NO STOP if INDEX of HOLDER )
BUY POSITION STOP BELOW
STOP LIMIT EXIT LM-HA =>> $2.70
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

These will be the first of our AUGUST RECOMMENDED ISSUES when they are filled



Orders to purchase or sell securities through your account with optionsXpress, Inc., an independent registered broker-dealer ("optionsXpress"), shall be accepted and executed solely by optionsXpress, subject to the terms and conditions of your individual account agreement with optionsXpress. optionsXpress makes no investment recommendations and does not provide financial, tax or legal advice. All inquiries regarding your optionsXpress account, including any disputes or trading errors, should be directed to optionsXpress. Option Investor, Inc is not a registered broker-dealer and is not in the business of transacting trades. Furthermore, Option Investor, Inc is not a registered investment adviser, does not provide financial, tax or legal advice, and is not recommending that you buy or sell any particular security. optionsXpress has made its services available to you via Option Investor, Inc as a courtesy. optionsXpress and Option Investor, Inc are separate and unrelated entities. optionsXpress is not affiliated with and does not endorse or warrant the products or services of Option Investor, Inc.

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