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NEW AUGUST RECOMMENDATIONS 7-23-06

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We are adding the following issues to our August RECOMMENDED LIST


We are recommending credit spreads in the following issues:

ADBE - Adobe Systems Incorporated offers business and mobile software and services worldwide. It operates in five business segments: Creative Solutions, Knowledge Worker Solutions (KWS), Mobile and Device Solutions (MDS), Enterprise and Developer Solutions (EDS), and Other. The Creative Solutions segment provides video, animation, motion graphics, visual effects, Web design and publishing, imaging server, mobile content, and other solutions.

ASEI - American Science and Engineering, Inc. engages in the development, manufacture, marketing, and sale of X-ray and other inspection solutions worldwide. It offers CargoSearch Inspection Systems, including high-energy and medium-energy nonintrusive inspection and screening devices that are used for the inspection of trucks, cars, cargo containers, pallets, and air cargo to combat trade fraud, drug trafficking, weapons smuggling, and terrorism at border crossings, seaports, military bases, railroad centers, airports, and cargo and transportation hubs.

We are recommending the following specific credit spreads,


Call credit spreads

ADBE $27.65

BUY AEQ-HZ ADBE AUG $32.50 CALL DEBIT = $0.10
SELL AEQ-HF ADBE AUG $30.00 CALL CREDIT= $0.35
NET CREDIT = $0.25
 

INITIAL "NET- CREDIT TARGET= $0.25 or $25.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.25 = $250.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,250.00
RETURN ON INVESTMENT= 11.11%

EXIT STRATEGY =1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $28.50
2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES
THOSE POSITIONS WILL GO ON THE WATCH LIST AND BE FOLLOWED WITH INSTRUCTIONS AS TO HOW TO PROCEED OR/WHAT EXIT POINT NEEDS TO BE ESTABLISHED

ASEI $48.75

BUY KBU-HM ASEI AUG $65.00 CALL DEBIT = $0.30
SELL KBU-HL ASEI AUG $60.00 CALL CREDIT= $0.65
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: $53.00


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 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 until ADVISED BUY STOP POSITION STOP BELOW
KBU-HL STOP LIMIT EXIT >> = $2.60 STOP LIMIT
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


This will bring our AUGUST RECOMMENDED POSITIONS to SIX (6) when these are executed



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