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ADDING A RECOMMENDATION TO OUR MCM SEPTEMBER 2008 RECOMMENDED LIST 8-31-08

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We are looking to add the following position to our SEPTEMBER recommended list. In fact we are taking it right off the SUPPLEMENTAL list you just received.

We are recommending a credit spread in the following issue:

HOT - Starwood Hotels & Resorts Worldwide, Inc. is one of the world's largest hotel operating companies. The company conducts their hotel business both directly and through the subsidiaries, including ITT Sheraton Corporation, Starwood Hotels & Resorts and CIGA S.p.A. The brand names include Sheraton, Westin, St. Regis/Luxury Collection, W and Four Points. Through these brands, the company is represented in most major markets of the world


We are recommending the following specific credit spread

Call credit spread - bearish spread

HOT $36.25

BUY HOT-II HOT SEP $45.00 CALL DEBIT = $0.10
SELL HOT-IH HOT SEP $40.00 CALL CREDIT= $0.50
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
HOT-IH 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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