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DJX DECEMBER 2008 MONTHLY CASH MACHINE RECOMMENDATION 11-14-08

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Here is our December 2008 DJX initial position. If the market dictates we may add the put side on this position at a later date

We are recommending the following DJX position for December 2008

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^DJX $88.35

{{{BUY DJV-LF ^DJX DEC $110.00 CALL DEBIT = $0.07

SELL DJV-LC ^DJX DEC $107.00 CALL CREDIT= $0.18

NET CREDIT = $0.11}}}

INITIAL "NET- CREDIT TARGET= $0.11 or $11.00

POTENTIAL PROFIT ( X 50 CONTRACTS @ $0.11 = $550.00

MARGIN REQUIRE. 50 CONTRACTS = $14,450.00

RETURN ON INVESTMENT= 3.81%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE $3.00

1. INDEX WILL BE PLACED ON WATCH LIST IF INDEX PRICE RAISES TO: $97.00

DIFFERENCE IN THE STRIKE PRICES 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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