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Additional December Recommendations 11-28-06

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We are recommending the following two (2) credit spreads for our DECEMBER RECOMMENDED List

We are recommending credit spreads in the following issues:

ITRI - Itron, Inc. provides hardware, software, and services to integrate the creation, measurement, collection, management, application, and forecasting of data for electric, gas, and water utilities worldwide. It operates in three segments: Electricity Metering, Meter Data Collection, and Software Solutions.

GFIG - GFI Group, Inc. provides brokerage services, market data, and analytics software products to institutional clients for various credit, financial, equity, and commodity instruments. It offers brokerage services for credit derivative products, including single-entity credit default swaps, emerging market credit default swaps, credit indices, options on single-entity credit default swaps, options on credit indices, and credit index tranches.


We are recommending the following specific credit spreads:


Call credit spreads:

ITRI $47.18

BUY IUP-LK ITRI DEC $55.00 CALL DEBIT = $0.10
SELL IUP-LJ ITRI DEC $50.00 CALL CREDIT= $0.40
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
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $48.50
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
IUP-LJ 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


GFIG $56.62

BUY GQG-LM GFIG DEC $65.00 CALL DEBIT = $0.25
SELL GQG-LL GFIG DEC $60.00 CALL CREDIT= $0.65
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
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $58.00
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
GQG-LL EXIT >> = $2.60 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



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