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Additional MCM JUL 2007 recommendations 7-1-07

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We are recommending the following credits spreads to add to our JULY 2007 recommended list


We are recommending credit spreads in the following issues:

FED - FirstFed Financial Corp., operates as a holding company for First Federal Bank of California that provides various banking services in California. The bank engages in generating deposits and originating loans. Its deposit products include passbook, money market deposit, interest-bearing checking, non interest-bearing checking, and fixed-term certificate accounts. The bank's loan portfolio comprises adjustable mortgage, residential, commercial, industrial, construction, and consumer loans.

RYL - The Ryland Group, Inc., together with its subsidiaries, engages in home building and the provision of mortgage-finance in the United States. Its operations cover various aspects of the home buying process, including design, construction, and sale. The company offers single-family detached homes; and attached homes, such as town homes and condominiums, including mid-rise buildings, as well as sells land and lots

AMGN - Amgen Inc., a biotechnology company, engages in the discovery, development, manufacture, and marketing of human therapeutics based on advances in cellular and molecular biology. It markets human therapeutic products in the areas of supportive cancer care, nephrology, inflammation, and oncology worldwide

AAPL - Apple Inc., together with its subsidiaries, engages in the design, manufacture, and marketing of personal computers and related software, services, peripherals, and networking solutions worldwide. It also provides a line of portable digital music players, as well as related accessories and services, including online sale of third-party audio and video products

SNDK - SanDisk Corporation designs, develops, manufactures, and markets flash storage card products used in various consumer electronics products. Its products include removable cards, universal serial bus flash drives, and flash-based MP3 players.


We are recommending the following specific credit spreads, which will include one trade
on SNDK to make up an iron condor ( This SNDK trade should not require any additional margin with the right broker)


Call credit spreads ( bearish credit spreads )

` FED $56.73

BUY FED-GM FED JUL $65.00 CALL DEBIT = $0.20
SELL FED-GL FED JUL $60.00 CALL CREDIT= $0.55
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: $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
FED-GL EXIT >> = $2.20 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

` RYL $37.37

BUY RYL-GV RYL JUL $42.50 CALL DEBIT = $0.10
SELL RYL-GH RYL JUL $40.00 CALL CREDIT= $0.30
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: $38.50
2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES
THOSE POSITIONS. THEY WILL GO ON THE WATCH LIST AND BE FOLLOWED WITH INSTRUCTIONS AS TO HOW TO PROCEED OR/WHAT EXIT POINT NEEDS TO BE ESTABLISHED

AMGN $55.29

BUY YAA-GL AMGN JUL $60.00 CALL DEBIT = $0.15
SELL YAA-GY AMGN JUL $57.50 CALL CREDIT= $0.40
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
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $56.50
2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES
THOSE POSITIONS. THEY WILL GO ON THE WATCH LIST AND BE FOLLOWED WITH INSTRUCTIONS AS TO HOW TO PROCEED OR/WHAT EXIT POINT NEEDS TO BE ESTABLISHED

Put credit spreads ( bullish credit spreads )


PRICE
AAPL $122.04

SELL QAA-SB AAPL JUL $110.00 PUT CREDIT= $0.80
BUY QAA-SA AAPL JUL $105.00 PUT DEBIT $0.45
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: $117.50

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
QAA-SB >> = $3.00 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

PRICE
SNDK $48.94 ( THIS POSITION CREATES AN IRON CONDOR ON SNDK )

SELL SWF-SI SNDK JUL $45.00 PUT CREDIT= $0.25
BUY SWQ-SV SNDK JUL $42.50 PUT DEBIT $0.10
NET CREDIT = $0.15
 

INITIAL "NET- CREDIT TARGET= $0.15 or $15.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.15 = $150.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,350.00
RETURN ON INVESTMENT= 6.38%
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: $46.50
2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES the Difference
IN THE STRIKE PRICE WILL BE OUR MAXIMUM EXPOSURE - WE WILL NOT USE STOPS ON THOSE POSITIONS. THEY WILL GO ON THE WATCH LIST AND BE FOLLOWED WITH INSTRUCTIONS AS TO HOW TO PROCEED OR/WHAT EXIT POINT NEEDS TO BE ESTABLISHED



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