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We are adding the CRDN put credit spread 4-4-08

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We are putting on a slight hedge to our CRDN position by selling a put spread on CRDN. What we will have created is in essence a straddle on the CRDN APRIl 32.5 strike. We will be short on both the put and the call on the CRDN APRIL 32.5 strike when filled

We are recommending the following credit spread on the put side for CRDN.
With the the right broker, there should be no additional margin requirement.

CRDN $34.45

SELL AUE-PV CRDN APR $32.50 PUT CREDIT= $0.55
BUY AUE-PF CRDN APR $30.00 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 $2,200.00
RETURN ON INVESTMENT= 21.95%
EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE $2.50
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE DROPS TO: $32.50
2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES the Difference
IN THE STRIKE PRICE WILL BE OUR MAXIMUM EXPOSURE - WE WILL NOT USE STOPS ON 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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