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Additional MCM AUGUST 2007 Recommendations list 7-22-07

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We are adding the following credit spreads to our AUGUST recommended list.

We are recommending spreads in the following issues:

CAL - Continental Airlines, Inc. is one of the largest airlines in the U.S., offering departures daily to domestic and international destinations. With hubs in Newark, Houston, Cleveland and Guam, Continental serves numerous international cities, including extensive service throughout the Americas, Europe and Asia

SNDK - Sandisk Corporation designs, manufactures, and markets flash memory storage products that are used in a wide variety of electronic systems. The company have designed flash memory storage solutions to address the storage requirements of emerging applications in the consumer electronics and industrial/communications markets. Its products are used in a number of rapidly growing consumer electronics applications, such as digital cameras, personal digital assistants, portable digital music players, digital video recorders and smart phones

HON - Honeywell International is a diversified technology and manufacturing company, serving customers worldwide with aerospace products and services, control technologies for buildings, homes and industry, automotive products, power generation systems, specialty chemicals, fibers, plastics and electronic and advanced materials

USO - United States Oil Fund LP

We are recommending the following specific credit spreads:


Call Credit spreads ( Bearish call spreads )

` CAL $35.37

BUY CAL-HI CAL AUG $45.00 CALL DEBIT = $0.15
SELL CAL-HH CAL AUG $40.00 CALL CREDIT= $0.50
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: $37.50
2. EQUITY ISSUES
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
CALHH 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 ( bullish put spreads )

SNDK $56.96

SELL SWF-TX SNDK AUG $52.50 PUT CREDIT= $0.50
BUY SWF-TJ SNDK AUG $50.00 PUT DEBIT $0.25
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: $54.00
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 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

HON $60.96

SELL HON-TY HON AUG $57.50 PUT CREDIT= $0.40
BUY HON-TK HON AUG $55.00 PUT DEBIT $0.20
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 $2.50
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE DROPS TO: $58.50
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

USO $57.00

SELL USO-TB USO AUG $54.00 PUT CREDIT= $0.50
BUY USO-TZ USO AUG $52.50 PUT DEBIT $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 $1,300.00
RETURN ON INVESTMENT= 15.38%
EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE $1.50
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE DROPS TO: $55.50
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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