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ADDITIONAL OCTOBER RECOMMENDATIONS 9-16-06

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I would advise every subcriber to read the "Excellent" Overview in OPTION INVESTOR DAILY TODAY. It reminds us of the perils of the notorious month known as October.

I would advise all subscribers of all of the services to read today's Option Investor Daily, especially regarding the correlation between past September and October scenarios.

History has a "Murpharian way" ( Murphy's Law) of repeating itself

Now with that in mind. Here are five (5) additional recommendation for the OCTOBER RECOMMENDED LIST.

We are recommending the following issues for our OCTOBER RECOMMENDED LIST.

We are recommending credit spreads in the following issues:

BA - The Boeing Company is one of the world's major aerospace firms. The company operates in three principal segments: commercial airplanes; military aircraft and missiles; and space and communications.

FLR - FLUOR CORP-NEW is a holding company that provides services on a global basis in the fields of engineering, procurement, construction, maintenance, operations, project management and business services. These services are grouped into three operating segments: Fluor Daniel, Fluor Global Services and Fluor Signature Services. Fluor Daniel consists of four business units: Energy; Chemicals; Manufacturing; Life Sciences; Mining; and Infrastructure.

SEPR - Sepracor Inc. is a leading specialty pharmaceutical company focused on the cost-effective development of safer, purer and more effective drugs that are improved versions of widely-prescribed pharmaceutical compounds. Typically, these Improved Chemical Entities are patented, single-isomer or active-metabolite forms of the parent compound

GPRO - Gen-Probe Inc. is a global leader in the development, manufacture and marketing of rapid, accurate and cost-effective nucleic acid testing (NAT) products used for the clinical diagnosis of human diseases and for screening donated human blood.

ANF - Abercrombie & Fitch Co. is principally engaged in the purchase, distribution and sale of men's, women's and kids' casual apparel. The company's retail activities are conducted under the Abercrombie & Fitch and abercrombie trade names through retail stores, a catalogue, a magazine/catalogue and a website, all bearing some form of the company name


We are recommending the following specific credit spreads:

Call credit spreads

BA $75.01

BUY BA-JQ BA OCT $85.00 CALL DEBIT = $0.10
SELL BA-JP BA OCT $80.00 CALL CREDIT= $0.50
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 $5.00
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $77.50
2. EQUITY ISSUE STOP LIMIT
THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
BUY POSITION STOP BELOW
BA-JP 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


FLR $77.91

BUY FLR-JR FLR OCT $90.00 CALL DEBIT = $0.25
SELL FLR-JQ FLR OCT $85.00 CALL CREDIT= $0.70
NET CREDIT = $0.45
 

INITIAL "NET- CREDIT TARGET= $0.45 or $45.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.45 = $450.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,550.00
RETURN ON INVESTMENT= 9.89%

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: $80.00
2. EQUITY ISSUE STOP LIMIT
THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
BUY POSITION STOP BELOW
FLR-JQ 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


SEPR $48.09

BUY ERU-JY SEPR OCT $57.50 CALL DEBIT = $0.55
SELL ERU-JK SEPR OCT $55.00 CALL CREDIT= $0.80
NET CREDIT = $0.25
 

INITIAL "NET- CREDIT TARGET= $0.25 or $25.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.25 = $250.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,250.00
RETURN ON INVESTMENT= 11.11%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE $2.50
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $51.00
2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES
SPECIAL INSTRUCTIONS WILL BE NOTED BELOW:

THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
BUY POSITION STOP BELOW
ERU-JK 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

GPRO $46.87

BUY PSU-JK GPRO OCT $55.00 CALL DEBIT = $0.10
SELL PSU-JJ GPRO OCT $50.00 CALL CREDIT= $0.60
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 $5.00
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $48.00
2.EQUITY ISSUE STOP LIMIT
THE STOP LIMIT ON THIS POSITION IS NOTED BELOW: (NO STOP if INDEX on HOLDER until ADVISED
BUY POSITION STOP BELOW
PSU-JJ EXIT >> = $1.80 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

ANF $68.00

SELL ANF-VZ ANF OCT $62.50 PUT CREDIT= $0.70
BUY ANF-VL ANF OCT $60.00 PUT DEBIT $0.45
NET CREDIT = $0.25
 

INITIAL "NET- CREDIT TARGET= $0.25 or $25.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.25 = $250.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,250.00
RETURN ON INVESTMENT= 11.11%
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
SPECIAL INSTRUCTIONS WILL BE NOTED BELOW:

THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
ANF POSITION STOP BELOW
ANF-VZ STOP LIMIT EXIT >> = $2.10

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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