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INITIAL OCTOBER 2008 RECOMMENDATIONS - * RESENT * 9-14-08

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This is just a resent of the OCTOBER 2008 recoommendations, I had to make a small change with the SBUX credit spread, from $0.25 to $0.20. Just to be sure I am resending the recommendations for the start of our below


Once again we are beginning our October recommendations off with the following credit spreads

We are recommending credit spreads in the following issues.

IGT - International Game Technology is one of the largest manufacturers of computerized casino gaming products and operators of proprietary gaming systems in the world and was the first to develop computerized video gaming machines

SBUX - Starbucks Corporation purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment primarily through its company-operated retail stores. In addition to sales through our company-operated retail stores, Starbucks sells whole bean coffees through a specialty sales group and supermarkets.

GM - General Motors Corp. designs, manufactures, and markets automotive vehicles. General Motors also has substantial interests in digital communications, financial and insurance services, locomotives, and heavy-duty automatic transmissions. The company is one of the largest U.S. exporters of cars and trucks with a global presence in countries across the globe.

VZ - Verizon Communications, formed by the merger of Bell Atlantic and GTE, is one of the world's leading providers of high-growth communications services. Verizon companies are the largest providers of wireline and wireless communications in the United States. Verizon is also the world's largest provider of print and on-line directory information

EBAY - eBay is one of the world's largest online trading communities. eBay creates a powerful marketplace for the sale of goods and services by a passionate community of individuals and small businesses. eBay enables trade on a local, national and international basis with local sites in numerous markets in the United States and country-specific sites in the United Kingdom, Canada, Germany, Austria, France, Italy, Japan, Korea and Australia.

We are recommending the following specific credit spreads. ( Please notice a mall correcton on the SBUX credit spread, it should be $0.20)

Call credit spreads - bearish call spreads

` IGT $19.51

BUY IGT-JE IGT OCT $25.00 CALL DEBIT = $0.08
SELL IGT-JX IGT OCT $22.50 CALL CREDIT= $0.30
NET CREDIT = $0.22

INITIAL "NET- CREDIT TARGET= $0.22 or $22.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.22 = $220.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,280.00
RETURN ON INVESTMENT= 9.65%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $21.00
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

SBUX $15.33

BUY SQX-JS SBUX OCT $19.00 CALL DEBIT = $0.05
SELL SQX-JL SBUX OCT $17.00 CALL CREDIT= $0.25
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= 14.29%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $16.50
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

GM $13.01

BUY GM-JD GM OCT $20.00 CALL DEBIT = $0.16
SELL GM-JT GM OCT $17.50 CALL CREDIT= $0.36
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 $2,300.00
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: $15.00
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

` VZ $34.49

BUY VZ-JH VZ OCT $40.00 CALL DEBIT = $0.05
SELL VZ-JU VZ OCT $37.50 CALL CREDIT= $0.22
NET CREDIT = $0.17

INITIAL "NET- CREDIT TARGET= $0.17 or $17.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.17 = $170.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,330.00
RETURN ON INVESTMENT= 7.30%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $36.00
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

` EBAY $22.50

BUY QXB-JY EBAY OCT $27.50 CALL DEBIT = $0.12
SELL QXB-JE EBAY OCT $25.00 CALL CREDIT= $0.44
NET CREDIT = $0.32

INITIAL "NET- CREDIT TARGET= $0.32 or $32.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.32 = $320.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,180.00
RETURN ON INVESTMENT= 14.68%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $24.00
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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