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NEW SEPTEMBER RECOMMENDATIONS 9-5-06

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We are adding two plays to our SEPTEMBER RECOMMENDED LIST

We are recommending credit spreads on the following issues

FLR - Fluor Corporation provides engineering, procurement, construction, operations and maintenance, and project management services worldwide. It operates in five segments: Oil and Gas, Industrial and Infrastructure, Government, Global Services, and Power. The Oil and Gas segment provides engineering, procurement, and construction services for upstream oil and gas production, downstream refining, and certain petrochemicals markets.

^XAU - Silver and Gold Index


We are recommending the following specific credit spreads:

Call credit spread:


FLR $86.52


BUY FLR-IS FLR SEP $95.00 CALL DEBIT = $0.05
SELL FLR-IR FLR SEP $90.00 CALL CREDIT= $0.40
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
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $88.00
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. ( IF INDEX OR HOLDER, WE WILL ADVISE WHEN STOP SHOULD BE PLACED

THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
STOP BELOW :
FLR-IR EXIT >> = $1.60 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 Spread:


^XAU $151.77

SELL SWO-UI ^XAU SEP $142.50 PUT CREDIT= $0.55
BUY SWO-UH ^XAU SEP $137.50 PUT DEBIT $0.25
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: $147.00
2. INDEX OPTIONS or HOLDER:
In ADDITION IF WE ARE USING A INDEX OR HOLDER OPTION WE WILL RECOMMEND WHEN A STOP SHOULD BE ADDED, IF THAT TIME BECOMES NECESSARY.
For the ^XAU we are recommending the
the STOP LIMIT BELOW:

THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
^XAU POSITION STOP BELOW
SWO-UI STOP LIMIT EXIT >> = $2.50

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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