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MCM DJX JANUARY 2009 POSITION RECOMMENDATION 12-14-08

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DJX POSITION(s) FOR JANUARY 2009

We are recommending an iron condor for the January 2009 position. We are hoping to get both sides of this DJX position executed. They are separate spreads and there is a chance we might get both, one side, or even none. It will depend on how the market opens and reacts through the market day.

DJX Call spread position = bearish call spread `

DJX $86.30

{{{BUY DJV-AD DJX JAN $108.00 CALL DEBIT = $0.08
SELL DJV-AA DJX JAN $105.00 CALL CREDIT= $0.17
NET CREDIT = $0.09}}}

INITIAL "NET- CREDIT TARGET= $0.09 or $9.00
POTENTIAL PROFIT ( X 50 CONTRACTS @ $0.09 = $450.00
MARGIN REQUIRE. 50 CONTRACTS = $14,550.00
RETURN ON INVESTMENT= 3.09%
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: $95.00

THE 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

DJX Put spread position = bullish put spread
DJX $86.30

{{{SELL DJZ-MH DJX JAN $60.00 PUT CREDIT= $0.23
BUY DJZ-ME DJX JAN $57.00 PUT DEBIT $0.15
NET CREDIT = $0.08 }}}

INITIAL "NET- CREDIT TARGET= $0.08 or $8.00

POTENTIAL PROFIT (x 50 CONTRACTS @ $0.08 = $400.00
MARGIN REQUIRE.50 CONTRACTS = $14,600.00
RETURN ON INVESTMENT= 2.74%
EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE $3.00
1. INDEX WILL BE PLACED ON WATCH LIST IF INDEX PRICE DROPS TO: $75.00

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.

IF BOTH POSITIONS ARE EXECUTED THE RIGHT BROKER WILL NOT CHARGE YOU MARGIN AGAINST THE SECOND POSITION. ONLY ONE OF THE TWO SIDES WILL HAVE THE MARGIN REQUIREMENT

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