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Additional recommendations for December 2007 recommended list 11-25-07

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We are adding the following two (2) credit spreads to our December recommended list

We are recommending credit spreads in the following issues:

AA - Alcoa, Inc. engages in the production and sale of primary aluminum, fabricated aluminum, and alumina worldwide. The company involves in technology, mining, refining, smelting, fabricating, and recycling of aluminum. It offers flat-rolled products, such as sheet and plate, foil products, and can reclamations; extruded and end products, such as extrusion, tube, and architectural extrusions; engineered solutions that comprise aerospace products, automotive components, AFL automotives, castings, auto engineering products, and fasteners; and packaging and consumer products, which include flexible packaging, foodservice packaging, closures, and polymerization and extrusions.

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. The company's flash storage technology allows data to be stored in a consumption format, as well as a durable and compact format that retains the data after the power has been turned off.


We are recommending the following specific credit spreads :

call credit spreads ( bearish call spreads )


AA $35.15

BUY AA-LV AA DEC $42.50 CALL DEBIT = $0.10
SELL AA-LU AA DEC $37.50 CALL CREDIT= $0.60
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
AA-LU EXIT >> = $2.80 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


SNDK $36.11

BUY SWQ-LV SNDK DEC $42.50 CALL DEBIT = $0.30
SELL SWQ-LH SNDK DEC $40.00 CALL CREDIT= $0.55
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:$38.00
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




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