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ADDITIONAL MCM NOVEMBER 2007 recommendations 10-21-07

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We are adding the following credit spreads to our NOVEMBER recommended list

We are recommending credit spreads in the following issues

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

^MFX - KBW MORTGAGE FINANCE INDEX (MFX)

IWM - ISHARES RUSSELL 2000 INDEX FUND (IWM)

JOSB - Jos. A. Bank Clothiers, Inc., is a retailer and cataloger of Men's tailored and casual clothing and accessories. The company's products are sold exclusively under the Jos. A. Bank label through its company-operated retail stores and franchise stores located throughout the Northeast, Southeast, Midwest, South, and Mid-Atlantic regions of the U.S., as well as through the company's s nationwide catalog operations and its e-commerce internet sites

WM - Washington Mutual Inc. is engaged in consumer banking, mortgage banking, commercial banking, financial services, and consumer finance. The company conducts its business operations through its subsidiaries. The company's principal banking subsidiaries are Washington Mutual Bank, FA, Washington Mutual Bank, and Washington Mutual Bank fsb. Its other principal subsidiaries are Washington Mutual Finance Corporation, Long Beach Mortgage Company and WM Financial Services, Inc.

DSL - Downey Financial Corporation was formed as a California-licensed savings and loan association and converted to a federal charter in 1995. It conducts its business through retail deposit branches, including full-service in-store branches. Residential loans are originated by residential loan officers who work out of the Bank's California retail deposit branches. Residential loan officers also originate residential loans through the Internet from two California call centers.

We are recommending the following specific credit spreads

Call credit spreads ( bearish call spreads )

SNDK $42.71

BUY SWF-KK SNDK NOV $55.00 CALL DEBIT = $0.20
SELL SWF-KJ SNDK NOV $50.00 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: $46.00
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.
HE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
BUY POSITION STOP BELOW
SWF-KJ EXIT >> = $3.20 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


^MFX $68.55

BUY FAO-KP ^MFX NOV $77.50 CALL DEBIT = $0.50
SELL FXK-KO ^MFX NOV $75.00 CALL CREDIT= $0.70
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: $72.50
2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES
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

INDEX OPTIONS, ISHARES AND HOLDER ISSUES:
IN ADDITION IF WE ARE USING A INDEX OR HOLDER OPTION WE WILL RECOMMEND WHEN A STOP SHOULD BE ADDED, IF THAT TIME BECOMES NECESSARY


IWM $79.09

BUY IOW-KJ IWM NOV $88.00 CALL DEBIT = $0.17
SELL IOW-KH IWM NOV $86.00 CALL CREDIT= $0.31
NET CREDIT = $0.14
 

INITIAL "NET- CREDIT TARGET= $0.14 or $14.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.14 = $140.00
MARGIN REQUIRE. (x 10 CONTRACTS $1,860.00
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: $83.50
2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES
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

INDEX OPTIONS, ISHARES AND HOLDER ISSUES:
IN ADDITION IF WE ARE USING A INDEX OR HOLDER OPTION WE WILL RECOMMEND WHEN A STOP SHOULD BE ADDED, IF THAT TIME BECOMES NECESSARY


JOSB $31.20

BUY QZS-KH JOSB NOV $40.00 CALL DEBIT = $0.25
SELL QZS-KG JOSB NOV $35.00 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: $32.50
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
QZS-KG 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


WM $29.09

BUY WM-KG WM NOV $35.00 CALL DEBIT = $0.20
SELL WM-KZ WM NOV $32.50 CALL CREDIT= $0.35
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
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $30.50
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


DSL $41.66

BUY DSL-KK DSL NOV $55.00 CALL DEBIT = $0.30
SELL DSL-KJ DSL NOV $50.00 CALL CREDIT= $0.60
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: $45.00
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
DSL-KJ 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



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