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NEW SEPTEMBER RECOMMENDATIONS - Monthly Cash Machine 8-27-06

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We are adding the following credit spreads to our SEPTEBMER RECOMMENDATION LIST.

We are recommending credit spreads in the following issues:

LCAV - LCA-Vision, Inc. engages in the development and operation of fixed-site laser vision correction services at its LasikPlus vision centers. Its vision centers provide staff, facilities, equipment, and support services for performing laser vision correction that employ laser technologies to correct nearsightedness, farsightedness, and astigmatism.

WBMD - WebMD Health Corp. provides health information services to consumers, physicians, healthcare professionals, employers, and health plans through its public and private online portals and health-focused publications. It operates in two segments: Online Services and Publishing Services. The Online Services segment provides public portals that enable consumers to become informed about healthcare choices and assist them to manage their health, as well as enables physicians and other healthcare professionals to improve their clinical knowledge and practice of medicine.

AAPL - Apple Computer, Inc. engages in the design, manufacture, and marketing of personal computers and related software, services, peripherals, and networking solutions worldwide. It also offers a line of portable digital music players, accessories, and services.

SNDK - SanDisk Corporation engages in the design, development, and market of flash storage card products used in various consumer electronics worldwide. Its products include flash cards, Universal Serial Bus, flash drives, and digital audio players. The company's flash storage allows data to be stored in a compact format that retains the data for an extended period of time after the power has been turned off. Its products are used in digital cameras, feature phones, and other digital consumer devices.


We are recommending the following specific credit spreads:

Call Credit Spreads:

PRICE
LCAV $42.61


BUY JVQ-IJ LCAV SEP $50.00 CALL DEBIT = $0.15
SELL JVQ-II LCAV SEP $45.00 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: $43.50


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.
THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
BUY POSITION STOP BELOW
JVQ-II EXIT >> = $1.50 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

PRICE
WBMD $37.78

BUY QWB-II WBMD SEP $45.00 CALL DEBIT = $0.30
SELL QWB-IH WBMD SEP $40.00 CALL CREDIT= $0.80
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: $38.50

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.
THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
BUY POSITION STOP BELOW
QWB-IH EXIT >> = $2.40 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


Put Credit Spreads:

PRICE
AAPL $68.75

SELL QAA-UZ AAPL SEP $62.50 PUT CREDIT= $0.40
BUY QAA-UL AAPL SEP $60.00 PUT DEBIT $0.20
NET CREDIT = $0.20
 

INITIAL "NET- CREDIT TARGET= $0.20 or $20.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.20 = $200.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,300.00
RETURN ON INVESTMENT= 8.70%
EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE $2.50
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE DROPS TO: $66.00
2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES the Difference
IN THE STRIKE PRICE WILL BE OUR MAXIMUM EXPOSURE - WE WILL NOT USE STOPS ON THOSE POSITIONS. THEY WILL GO ON THE WATCH LIST AND BE FOLLOWED WITH INSTRUCTIONS AS TO HOW TO PROCEED OR/WHAT EXIT POINT NEEDS TO BE ESTABLISHED.

PRICE
SNDK $54.61

SELL SWF-UJ SNDK SEP $50.00 PUT CREDIT= $0.45
BUY SWF-UI SNDK SEP $45.00 PUT DEBIT $0.15
NET CREDIT = $0.30
 

INITIAL "NET- CREDIT TARGET= $0.30 or $30.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.30 = $300.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,700.00
RETURN ON INVESTMENT= 6.38%
EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE $5.00
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE DROPS TO: $52.00

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.

THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
SNDK POSITION STOP BELOW
SWF-UJ STOP LIMIT EXIT >> = $1.20
If and when the STOP LIMIT IS EXECUTED - A contingency order should be in place to then SELL the LONG SIDE if 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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