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WATCH LIST - SEPTEMBER - Monthly Cash Machine 9-01-06

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SEPTEMBER

Monthly Cash Machine

AS OF: 09-01-06

CURRENT

ISSUE GOES ON

WATCH LIST

ISSUE

STOCK PRICE

WATCH LIST IF:

PRICE

^SOXX

449.22

ABOVE

422.50

SBUX

31.01

ABOVE

31.50

IR

38.02

ABOVE

38.50

RYL

42.67

ABOVE

42.50

GPRO

48.61

ABOVE

52.50

LCAV

44.03

ABOVE

43.50

WBMD

36.96

ABOVE

38.50

JCP

63.04

BELOW

62.50

AAPL

67.85

BELOW

66.00

SNDK

58.87

BELOW

52.00

WATCH LIST COMMENTARY:

^SOXX finally runs out of gas and at least takes a breather now $9.22 points in the money. We are still probably look at doubling up this position and moving it to the put side and reduce our loss. WATCH THIS ONE CLOSELY;

LCAV - closes up to $44.03, up $0.04 and will remain on the WATCH list at this time .

RYL - on WATCH list. Homebuilders just won't go away.closed at $42.67 barely making the WATCH LIST with close over $43.50.

CURRENT ISSUES ON THE WATCH LIST - 9-01-06

LCAV

^SOXX

RYL

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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