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ADDITIONAL SEPTEMBER RECOMMENDATIONS 8-15-06

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We are adding the following two credit spreads our SEPTEMBER RECOMMENDED LIST


We are recommending credit spreads on the following issues:


RYL - The Ryland Group, Inc. engages in home building and mortgage-financing in the United States. Its operations cover various aspects of the home buying process from design, construction, and sale to mortgage origination, title insurance, escrow, and home owners insurance brokerage services. The company operates in two segments, Homebuilding and Financial Services

GPRO - Gen-Probe Incorporated engages in the development, manufacture, and marketing of nucleic acid probe-based products. It products are used for clinical diagnosis of human diseases, screening of donated human blood, detection of harmful organisms in the environment, and in industrial processes. The company markets a portfolio of products that use company's technologies to detect various infectious microorganisms, including those causing sexually transmitted diseases, tuberculosis, strep throat, pneumonia, and fungal infections


We are recommending the following two specific credit spreads

CALL CREDIT SPREADS

RYL $40.86

BUY RYL-IW RYL SEP $47.50 CALL DEBIT = $0.25
SELL RYL-II RYL SEP $45.00 CALL CREDIT= $0.50
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: $42.50
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

GPRO $49.98

BUY PSU-IL GPRO SEP $60.00 CALL DEBIT = $0.15
SELL PSU-IK GPRO SEP $55.00 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 : $5.00
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $52.50


2. 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:

BUY POSITION STOP BELOW
PSUIK EXIT >> = $2.00 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




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