We are adding several additional candidates for our SEPTEMBER recommended list.

We are recommending credit spreads in the following issues.

ATI - Allegheny Technologies Incorporated produces and sells specialty metals worldwide. The companyÂ’s High Performance Metals segment offers a range of high performance alloys, including nickel-and cobalt-based alloys and superalloys; titanium and titanium-based alloys; exotic metals, such as zirconium, hafnium, niobium, nickel-titanium, and their related alloys; and other specialty alloys primarily in long product forms, including ingots, billets, bars, shapes and rectangles, rods, wires, seamless tubes, and castings. This segment markets its products directly to end-use customers in the aerospace and defense, oil and gas, chemical process, electrical energy, and medical industries. Allegheny TechnologiesÂ’ Flat-Rolled Products segment provides stainless steel, nickel-based alloys and superalloys, titanium and titanium-based alloys, and specialty alloys in various product forms, including plate, sheet, engineered strip, and precision rolled strip products, as well as grain-oriented electrical steel sheet.

DECK - Deckers Outdoor Corporation engages in the design, production, marketing, and brand management of footwear and accessories for outdoor activities and everyday casual lifestyle use. It offers casual open and closed-toe outdoor footwear, as well as additional outdoor performance footwear, including multi-sport shoes, light hiking shoes, amphibious footwear, and rugged outdoor travel shoes; and sheepskin footwear, sustainable footwear, and sandals under various styles for men, women, and kids. The company provides various accessories, including handbags, headwear, and outerwear. It markets its products under the Teva, UGG, Simple, Ahnu, and TSUBO brand names. The company sells its products primarily to specialty retailers, department stores, outdoor retailers, sporting goods retailers, shoe stores, and online retailers. Deckers Outdoor Corporation sells its products directly to end-user consumers through its Web sites, call centers, retail concept stores, and retail outlet stores, as well as through retailers in the United States.

DO - Diamond Offshore Drilling, Inc. operates as an offshore oil and gas drilling contractor worldwide. The company provides offshore drilling services in the deepwater, harsh environment, conventional semisubmersible, and jack-up markets to independent oil and gas companies and government-owned oil companies. As of December 31, 2009, it operated a fleet of 47 offshore rigs consisting of 32 semisubmersibles, 14 jack-ups, and 1 drillship. The company was founded in 1989 and is headquartered in Houston, Texas. Diamond Offshore Drilling, Inc. is a subsidiary of Loews Corporation.

GRMN - Garmin Ltd., together with its subsidiaries, designs, develops, manufactures, and markets global positioning system (GPS) enabled products and other navigation, communication, and information products worldwide. It operates in four segments: Automotive/Mobile, Outdoor/Fitness, Marine, and Aviation. The Automotive/Mobile segment offers a range of automotive navigation products, as well as various products and applications designed for the mobile GPS market. The Outdoor/Fitness segment provides GPS enabled handheld products for outdoor activities, cyclists, and training assistants for athletic pursuits.

SLB - Schlumberger Limited and its subsidiaries supply technology, integrated project management, and information solutions to the oil and gas industry worldwide. The company operates in two segments, Oilfield Services and WesternGeco. The Oilfield Services segment provides a range of exploration and production services required during the life of an oil and gas reservoir. It offers Wireline technologies comprising open-hole and cased-hole services; directional-drilling, measurement-while-drilling, and logging-while-drilling services; exploration and production pressure and flow-rate measurement services at the surface and downhole; services used during oil and gas well drilling and completion; and services used to maintain optimal production throughout the life of a well.

We are recommending the following specific credit spreads.

Call Credit Spreads = Bearish Call Spreads

The September watch list and Portfolio will begin being followed as soon as the August Options come off the board on Friday.

However, we will keep you informed if any action is needed on any of the September positions before that.