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WATCH LIST - Monthly Cash Machine - SEPTEMBER 8-30-06

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SEPTEMBER

Monthly Cash Machine

AS OF: 8-30-06

CURRENT

ISSUE GOES ON

WATCH LIST

ISSUE

STOCK PRICE

WATCH LIST IF:

PRICE

^SOXX

453.77

ABOVE

422.50

SBUX

30.74

ABOVE

31.50

IR

37.38

ABOVE

38.50

RYL

42.31

ABOVE

42.50

GPRO

48.32

ABOVE

52.50

LCAV

43.99

ABOVE

43.50

WBMD

36.83

ABOVE

38.50

JCP

63.16

BELOW

62.50

AAPL

66.96

BELOW

66.00

SNDK

57.88

BELOW

52.00

WATCH LIST COMMENTARY: RYL drops off the WATCH list with close below $42.50 @ $42.31

^SOXX runs up another $8.00 and is now $13.00 into the money. We will probably look at doubling up this position and moving it to the put side and reduce our loss. We just can't afford a big sell off in the next two weeks that might come after us on the short side if we roll and double down

LCAV - closes up to $43.99 slightly below the $44.00 price and will remain on the WATCH list until it can close below $43.50

WATCH LIST: ADDS, DELETES and CHANGES

RYL comes off the WATCH LIST, ^SOXX forces us to take action and LCAV creeps up slowly into the WATCH LIST ZONE

CURRENT ISSUES ON THE WATCH LIST - 8-30-06

LCAV

^SOXX

Explanation of the Watch List:

The "WATCH LIST" is nothing more than a quick way

to see where the current stock price is in relationship to the short side of our trade.

It simply works like this:

If the strike is more than two strikes away from our SHORT side

We code it in GREEN

>

If the stock remains in the normal trading range.

We do not code it it remains WHITE

>

If the stock goes below the predetermined WATCH LIST Target ( if put spread ) or above ( if call spread).

We code it in YELLOW. ( The yellow just means we should be watching the issue.

If the issue goes into the MONEY against our "Short" position

We code it RED and will act on the position by closing out the position or by "rolling" the position up or down

It is nothing more than a gauge to measure, quickly where we are and which position we might have to WATCH and maybe even potentially acted upon.

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