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MCM MARCH 2008 recommendations 2-9-08

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Let us begin the MARCH recommendation list with the following credit spreads

We are recommending credit spreads in the following issues:

MSTR - MicroStrategy Incorporated, a leading worldwide provider of business intelligence software, today announced that GT Nexus has selected MicroStrategy to power the customer-facing analytics and reporting capabilities on its Global Logistics portal. The GT Nexus portal is an on demand technology platform that is used by importers, exporters, transportation carriers, suppliers, banks, and other partners to manage goods that are moving around the world.

COMMENTARY:

MSTR - Since December of 2007 the key indicators of this company have been bearish. This overall bearish environment for MSTR will continue as the U.S enters 2008.

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LFC - China Life Insurance Company Limited is the leading life insurance company in China's life insurance market. The Company provides products and services including individual life insurance, group life insurance, accident and health insurance. The Company is China's largest life insurance company, a leading provider of annuity products and life insurance for both individuals and groups, and a leading provider of accident and health insurance. Through its controlling shareholding in the China Life Insurance Assets Management Co., Ltd., the Company became China's largest insurance asset management company and one of the largest institutional investors in China.

COMMENTARY:

LFC - China's largest insurance companies continue to add on revenues from its Life and insurance divisions, but the economic slowdown will in deed effect loss/ratios and net premiums collected. In addition the lower interest rate environment will diminish the difference between what the company generates that goes back into reinvestment of existing assets to fund current liabilities. Again a decrease in the global economy will effect their bottom line.

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FNM - Fannie Mae
is the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is one of the nation's largest sources of financing for home mortgages. Fannie Mae is working to shrink the nation's homeownership gaps through an American Dream Commitment to increase homeownership rates and serve targeted American families by the end of the decade.



COMMENTARY:

FNM - What can I say for Fannie Mae. The housing sector was down in 2007, and that outlook for continued softening is still on the horizon, even with the Fed's lowering of interest rates. It does no good if the requirements to qualifiy for home loans become so stringent that no one can qualify, then the interest rate cuts will have minimal effect on the housing market. This one is flat to down at best ,until the economic situation in real estate and housing actually bottoms out and turns around. We don't see that happening until late 2008 at the earliest, if that soon

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ERTS - Electronic Arts Inc
. operates in two principal business segments globally: EA Core business segment: creation, marketing and distribution of entertainment software and the EA.com business segment: creation, marketing and distribution of entertainment software which can be played or sold online.

COMMENTARY:

ERTS - Even with the continued expansion of NFL Madden, The Rock Star software and the addition of SIMS type online games. ERTS growth will be hindered in 2008 by the current global economic slowdown.
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We are recommending the following specific credit spreads

Call credit spreads ( bearish credit spreads )

MSTR $67.15

BUY EOU-CQ MSTR MAR $85.00 CALL DEBIT = $0.45
SELL EOU-CP MSTR MAR $80.00 CALL CREDIT= $0.80
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: $72.50
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
EOU-CP EXIT >> = $4.00 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


LFC $55.35

BUY LFC-CO LFC MAR $75.00 CALL DEBIT = $0.65
SELL LFC-CN LFC MAR $70.00 CALL CREDIT= $1.00
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: $60.00
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
LFC-CN EXIT >> = $4.00 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

FNM $31.12

BUY FNM-CI FNM MAR $45.00 CALL DEBIT = $0.45
SELL FNM-CH FNM MAR $40.00 CALL CREDIT= $0.85
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: $37.50
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
FNM-CH EXIT >> = $3.40 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

ERTS $44.57

BUY EZQ-CK ERTS MAR $55.00 CALL DEBIT = $0.15
SELL EZQ-CJ ERTS MAR $50.00 CALL CREDIT= $0.60
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: $47.50
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
EZQ-CJ EXIT >> = $3.00 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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