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MCM Initial DECEMBER 2007 recommended list 11-11-07

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We are recommending the following credit spreads to start out our DECEMBER recommended list.

We are recommending credit spreads in the following issues.

C - Citigroup Inc., the leading global financial services company, has some two hundred million customer accounts and does business in more than hundred countries, providing consumers, corporations, governments, and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, and Banamex

GM - General Motors Corp. designs, manufactures, and markets automotive vehicles. General Motors also has substantial interests in digital communications, financial and insurance services, locomotives, and heavy-duty automatic transmissions. The company is one of the largest U.S. exporters of cars and trucks with a global presence in countries across the globe.

RVBD - Riverbed Technology, Inc. provides solutions for wide-area distributed computing in the United States and internationally. It offers Steelhead appliances, which consist of its RiOS proprietary software embedded on a general purpose hardware computing platform. The company's line of Steelhead appliances addresses the needs of customers, such as small office deployments, and large headquarters and datacenter locations.

MER - Merrill Lynch & Co., Inc. is one of the world's leading financial management and advisory companies with offices in numerous countries. The firm is a global underwriter and market maker of debt and equity securities and a strategic advisor to corporations, governments, institutions, and individuals worldwide

BID - Sotheby's Holdings, Inc. is one of the world's second largest auctioneers of fine arts, antiques and collectibles, offering property in collecting categories, among them paintings, jewelry, decorative arts, and books. Sotheby's Holdings, Inc is the parent company of Sotheby's worldwide auction businesses, art-related financing and private sales activities. The Company operates in countries, with principal salesrooms located in New York and London. The company also regularly conducts auctions in other salesrooms around the world, including Australia, Hong Kong, France, Italy, the Netherlands, Switzerland and Singapore.

We are recommending the following specific credit spreads

Call credit spreads ( bearish call spreads )

C $33.10

BUY C-LV C DEC $42.50 CALL DEBIT = $0.21
SELL C-LH C DEC $40.00 CALL CREDIT= $0.38
NET CREDIT = $0.17
 

INITIAL "NET- CREDIT TARGET= $0.17 or $17.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.17 = $170.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,330.00
RETURN ON INVESTMENT= 7.30%

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. 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

GM $31.28

BUY GM-LH GM DEC $40.00 CALL DEBIT = $0.20
SELL GM-LU GM DEC $37.50 CALL CREDIT= $0.38
NET CREDIT = $0.18
 

INITIAL "NET- CREDIT TARGET= $0.18 or $18.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.18 = $180.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,320.00
RETURN ON INVESTMENT= 7.76%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $33.00
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


RVBD $27.33

BUY UEX-LH RVBD DEC $40.00 CALL DEBIT = $0.60
SELL UEX-LG RVBD DEC $35.00 CALL CREDIT= $1.00
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: $30.00
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
UEX-LG EXIT >> = $3.50 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

MER $53.27

BUY MER-LM MER DEC $65.00 CALL DEBIT = $0.70
SELL MER-LZ MER DEC $62.50 CALL CREDIT= $0.95
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: $57.00
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

BID $32.75

BUY BID-LI BID DEC $45.00 CALL DEBIT = $0.50
SELL BID-LH BID DEC $40.00 CALL CREDIT= $1.00
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
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $35.00
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
BID-LH EXIT >> = $3.50 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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