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NEW RECOMMENDATIONS for OCTOBER 9-20-06

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We are recommending the following additions to our OCTOBER RECOMMENDED LIST

We are recommending credit spreads on the following issues


SU - SUNCOR ENERGY is a world leader in mining and extracting crude oil from the vast oil sands deposits of northern Alberta. They also explore for, develop and market natural gas, operate a refining and marketing business in Ontario, and are actively involved in the development of renewable energy sources to help meet the energy needs of tomorrow.

WLT - WALTER INDUSTRIES, INC. is a diversified holding company engaged in homebuilding and financing, pipe manufacturing, natural resource development, building materials and industrial manufacturing. Co. principally serves residential and non-residental construction, water and waste water transmission and industrial markets.

ADBE - Adobe Systems Incorporated is a provider of graphic design, publishing, and imaging software for Web and print production. It offers a market-leading line of application software products for creating, distributing, and managing information of all types.


We are recommending the following specific credit spreads:

SU $67.98

BUY SU-JP SU OCT $80.00 CALL DEBIT = $0.25
SELL SU-JO SU OCT $75.00 CALL CREDIT= $0.55
NET CREDIT = $0.30

INITIAL "NET- CREDIT TARGET= $0.30 or $30.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.50 = $300.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,700.00
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: $70.00
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:
BUY POSITION STOP BELOW
SU-JO 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

WLT $46.59

BUY WLT-JK WLT OCT $55.00 CALL DEBIT = $0.20
SELL WLT-JJ WLT OCT $50.00 CALL CREDIT= $0.70
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: $47.50
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.
THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
BUY POSITION STOP BELOW
WLT-JJ EXIT >> = 2.10 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

ADBE $37.34

SELL AEQ-VG ADBE OCT $35.00 PUT CREDIT= $0.40
BUY AEQ-VZ ADBE OCT $32.50 PUT DEBIT $0.15
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: $36.50
2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES the Difference
IN THE STRIKE PRICE WILL BE OUR MAXIMUM EXPOSURE
A STOP LIMIT will be placed on the SHORT STRIKE PRICE
THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
ADBE POSITION STOP BELOW
AEQ-VG STOP LIMIT EXIT >> = $1.25 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





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