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Additional MCM JULY 2008 recommendation 6-23-08

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We are adding the following issues to our JULY recommended list.

We are recommending credit spreads in the following issues

MER - Merrill Lynch & Co., Inc. is one of the world's leading financial management and advisory companies with offices in numerous countries. The firm is a global underwriter and market maker of debt and equity securities and a strategic advisor to corporations, governments, institutions, and individuals worldwide.

AIG - American International Group, Inc., world leaders in insurance and financial services, is the leading international insurance organization with operations in more than one hundred thirty countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer.


MS - MORGAN STANLEY is a preeminent global financial services firm that maintains leading market positions in each of its three primary businesses: securities; asset management; and credit services. The company combines global strength in investment banking and institutional sales and trading with strength in providing full-service and on-line brokerage services, investment and global asset management services and, primarily through its Discover Card brand, quality consumer credit products.

We are recommending the following specifc credit spreads


Bearish call spreads

MER $35.95 (will annouce earnings 3 days before expiration, we can decide what to do with it near July 15th)

BUY MER-GW MER JUL $47.50 CALL DEBIT = $0.15
SELL MER-GC MER JUL $42.50 CALL CREDIT= $0.57
NET CREDIT = $0.42
 

INITIAL "NET- CREDIT TARGET= $0.42 or $42.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.42 = $420.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,580.00
RETURN ON INVESTMENT= 9.17%

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.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
MER-GC EXIT >> = $2.50 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

AIG $32.10

BUY AIG-GB AIG JUL $39.00 CALL DEBIT = $0.19
SELL AIG-GK AIG JUL $37.00 CALL CREDIT= $0.35
NET CREDIT = $0.16
 

INITIAL "NET- CREDIT TARGET= $0.16 or $16.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.16 = $160.00
MARGIN REQUIRE. (x 10 CONTRACTS $1,840.00
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: $34.50
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

MS $38.68

BUY MS-GI MS JUL $45.00 CALL DEBIT = $0.35
SELL MS-GR MS JUL $43.00 CALL CREDIT= $0.55
NET CREDIT = $0.20
 

INITIAL "NET- CREDIT TARGET= $0.20 or $20.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.20 = $200.00
MARGIN REQUIRE. (x 10 CONTRACTS $1,800.00
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: $40.50
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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