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NEW AUGUST RECOMMENDATIONS

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We are recommending the following spreads for the AUGUST RECOMMENDED LIST

We are recommending credit spreads in the following issues:


SRZ - Sunrise Senior Living, Inc. provides senior living services in the United States, Canada, the United Kingdom, and Germany. It offers independent living services, which include housing, meals, transportation, activities, and housekeeping, as well as licensed skilled nursing services for residents who require 24-hour skilled nursing care. The company also provides assisted living services, such as selection of resident accommodations; and determination of the appropriate level of care and service for such resident.

MON - Monsanto Company provides agricultural products to farmers worldwide. The company produces seeds and develops biotechnology traits that assist farmers in controlling insects and weeds. It provides other seed companies with genetic material and biotechnology traits for their seed brands. These products include canola seed, corn and soybean seed, vegetable and fruit seed, cotton seed, sunflower seed, and sorghum seed. In addition, Monsanto manufactures lawn-and-garden herbicide products for the residential market and animal agricultural products.

We are recommending the following specific spreads

SRZ $26.90 (CALL CREDIT SPREAD)

BUY SRZ-HG SRZ AUG $35.00 CALL DEBIT = $0.15
SELL SRZ-HF SRZ AUG $30.00 CALL CREDIT= $0.55
NET CREDIT = $0.40

INITIAL "NET- CREDIT TARGET= $0.40 or $40.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.40 = $400.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,600.00
RETURN ON INVESTMENT= 8.70%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $28.00

A STOP LIMIT will be placed on the SHORT STRIKE PRICE of this spread.

BUY POSITION TO CLOSE OUT BELOW
SRZ-HF EXIT >> = $1.80 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

MON $85.31 (CALL CREDIT SPREAD)

BUY MON-HS MON AUG $95.00 CALL DEBIT = $0.15
SELL MON-HR MON AUG $90.00 CALL CREDIT= $0.70
NET CREDIT = $0.55

INITIAL "NET- CREDIT TARGET= $0.55 or $55.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.55 = $550.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,450.00
RETURN ON INVESTMENT= 12.36%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $88.00

BUY STOP ON POSITION BELOW
MON-HR EXIT >> = $3.00 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

MON $85.31 (PUT CREDIT SPREAD)

SELL MON-TP MON AUG $80.00 PUT CREDIT= $0.75
BUY MON-TO MON AUG $75.00 PUT DEBIT $0.25
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 DROPS TO: $82.00


BUY STOP ON POSITION BELOW
MON-TP EXIT >> = $2.75 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


### THE MON TRADES WILL ONLY HAVE ONE OF THE TWO SPREADS WITH A MARGIN REQUIREMENT , IF YOU HAVE THE RIGHT BROKER.



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