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INITIAL OCTOBER MCM RECOMMENDED PLAYS 9-10-06

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We are recommending the following four (4) spreads to begin the OCTOBER RECOMMENDED LIST

We are recommending spreads on the following issues:

CNX - Consol Energy Inc. engages in the production of multifuel energy and provision of energy services primarily to electric power generation industry in the United States. It involves in the mining, preparation, and marketing of steam coal, primarily to power generators, as well as metallurgical coal to metal and coke producers.

OCR -Omnicare, Inc., is a leading pharmaceutical care company, combining the nation's largest provider of pharmacy services to long-term care facilities with one of the world's largest clinical research organizations. Omnicare Clinical Research provides drug development services

NX -Quanex Corp is a technological leader in the manufacture of value-added metal products made from carbon and alloy steel and aluminum. Quanex's products include engineered carbon and alloy steel bars, aluminum flat-rolled products, and fabricated aluminum and steel products.

GILD -Gilead Sciences, Inc. is an independent biopharmaceutical company that seeks to provide accelerated solutions for patients and the people who care for them. They have a broad-based focus on developing and marketing drugs to treat patients with infectious diseases, including viral infections, fungal infections and bacterial infections, and a specialized focus on cancer.


We are recommending the following specific spreads:


Call credit spreads

CNX 33.20

BUY CNX-JH CNX OCT $40.00 CALL DEBIT = $0.30
SELL CNX-JU CNX OCT $37.50 CALL CREDIT= $0.50
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
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $35.00
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


OCR 43.02

BUY OCR-JJ OCR OCT $50.00 CALL DEBIT = $0.20
SELL OCR-JW OCR OCT $47.50 CALL CREDIT= $0.50
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 $2,200.00
RETURN ON INVESTMENT= 8.70%

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: $45.00
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


NX 32.28

BUY NX-JH NX OCT $40.00 CALL DEBIT = $0.25
SELL NX-JG NX OCT $35.00 CALL CREDIT= $0.85
NET CREDIT = $0.60

INITIAL "NET- CREDIT TARGET= $0.60 or $60.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.60 = $600.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,400.00
RETURN ON INVESTMENT= 9.89%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $33.50


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.
NX-JG 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

Put credit spreads

GILD 63.69

SELL GDQ-VA GILD OCT $57.50 PUT CREDIT= $0.55
BUY GDQ-VX GILD OCT $52.50 PUT DEBIT $0.20
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 DROPS TO: $61.00
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:
GILD POSITION STOP BELOW
GDQ-VA STOP LIMIT EXIT >> = $1.75
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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