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additional MCM FEBRUARY 2008 recommendations 1-27-08

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RECOMMENDATIONS ARE ALL THE SAME NO CHANGES...just a small correction regarding AXP
at bottom.


We are adding the following credit spreads to our FEBRUARY 2008 recommended list.

We are recommending credit spreads in the following issues:

HOG - Harley-Davidson is an American motorcycle manufacturer. The company operates in two segments: Motorcycles and Related Products and Financial Services. The Motorcycles segment designs, manufactures and sells heavyweight touring, custom and performance motorcycles as well as a complete line of motorcycle parts, accessories and general merchandise.

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.

CBI - Chicago Bridge & Iron Company N.V. designs, builds, repairs and modifies steel tanks and other steel plate structures and associated systems. The Company designs and builds petroleum terminals, refinery pressure vessels, low temperature and cryogenic storage facilities and elevated water storage tanks for clients internationally.

We are recommending the following specific credit spreads

Call credit spreads ( bearish call spreads )


HOG $37.96 (20 contracts)

BUY HOG-BI HOG FEB $45.00 CALL DEBIT = $0.15
SELL HOG-BV HOG FEB $42.50 CALL CREDIT= $0.30
NET CREDIT = $0.15

INITIAL "NET- CREDIT TARGET= $0.15 or $15.00
POTENTIAL PROFIT (x 20 CONTRACTS @ $0.15 = $300.00
MARGIN REQUIRE. (x 20 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: $40.00
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 $29.92

BUY BID-BH BID FEB $40.00 CALL DEBIT = $0.15
SELL BID-BG BID FEB $35.00 CALL CREDIT= $0.45
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: $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
BID-BG EXIT >> = $2.25 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

CBI $43.91

BUY CBI-BK CBI FEB $55.00 CALL DEBIT = $0.35
SELL CBI-BJ CBI FEB $50.00 CALL CREDIT= $0.80
NET CREDIT = $0.45

INITIAL "NET- CREDIT TARGET= $0.45 or $45.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.45 = $450.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,550.00
RETURN ON INVESTMENT= 9.89%

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.
THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
BUY POSITION STOP BELOW
CBI-BJ EXIT >> = $3.80 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

NOTICE: (CORRECTION) I am aware that AXP will be annoucing earnings tomorrow and I usually DO NOT hold positions over earnings reports . however here is a rare expection. I don't expect an upside surprise and we have nearly a 5 point cushion from our Feb 50 call. Being long this position would be a different story ( short a put spread - no way ), but I like our bearish position especially considering the current condition of the financial sector.

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