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additional MCM January 2008 recommendation 1-7-08

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We are recommending the following issue to be added to our January recommended list

We are recommending a credit spread in the following issue:

SOLF - Solarfun Power Holdings Co., Ltd., through its subsidiary, Jiangsu Linyang Solarfun Co., Ltd., engages in the development, manufacture, and sale of photovoltaic (PV) cells and PV modules primarily in the People's Republic of China. It offers monocrystalline silicon cells and modules, and multicrystalline silicon cells and modules to system integrators, as well as through third party distributors. It also provides PV cell processing services to convert silicon wafers into PV cells on behalf of third parties, including silicon suppliers; and solar system integration services to end-users in China. The company's customers include solar energy product distributors, engineering and design firms, and other energy product distributors. It also has operations in Germany, Italy, and Spain. The company was founded in 2004 and is headquartered in Qidong, the People's Republic of China.

We are recommending the following specific credit spread

Put credits spread ( bullish credit spread )

SOLF $37.64

SELL QFG-MF SOLF OCT $30.00 PUT CREDIT= $0.55
BUY QFG-ME SOLF OCT $25.00 PUT DEBIT $0.25
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 $5.00
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE DROPS TO: $34.00
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:
SOLF POSITION STOP BELOW
QFG-MF STOP LIMIT EXIT >> = $2.50

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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