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Additional recommendations for MCM AUGUST 2008 7-27-08

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We are adding the following two credit spreads to our AUGUST recommended list

We are recommending credit spreads in the following issues:


ASH - Ashland, Inc. provides various products and services in the United States and internationally. It operates in four segments: Ashland Distribution, Ashland Performance Materials, Valvoline, and Ashland Water Technologies. The Ashland Distribution segment distributes chemicals, plastics, and composite raw materials in North America, as well as plastics in Europe. It also provides environmental services, including hazardous and non-hazardous waste collection, recovery, recycling, and disposal services. The Ashland Performance Materials segment engages in the manufacture and supply of specialty chemicals and services to the building and construction, packaging and converting, transportation, marine, and metal casting industries.


AYI - Acuity Brands, Inc., through its subsidiaries, engages in the design, production, and distribution of lighting equipment and specialty products worldwide. Its lighting equipment includes indoor and outdoor lighting fixtures for commercial and institutional, industrial, infrastructure, and residential applications. The company offers its lighting equipments to electrical distributors, retail home improvement centers, national accounts, electric utilities, utility distributors, municipalities, contractors, catalogs, and lighting showrooms. Acuity Brands sells its lighting products under Lithonia Lighting, Holophane, Gotham, Hydrel, Peerless, Antique Street Lamps, Carandini, American Electric Lighting, SpecLight, Metal Optics, and Mark Architectural Lighting brand names through independent sales agents, factory sales representatives, distribution centers, regional warehouses, and commercial warehouses

We are recommending the following specific credit spreads


Call credit spreads ( bearish call spreads )

ASH $40.83

BUY ASH-HJ ASH AUG $50.00 CALL DEBIT = $0.15
SELL ASH-HI ASH AUG $45.00 CALL CREDIT= $0.50
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: $42.50
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
ASH-HI 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


AYI $41.52

BUY AYI-HJ AYI AUG $50.00 CALL DEBIT = $0.20
SELL AYI-HI AYI AUG $45.00 CALL CREDIT= $0.55
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: $42.50
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
AYI-HI 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





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