We are adding the following spreads to our August recommended list.

We are recommending credit spreads in the following issues.

COF - Capital One Financial Corporation operates as the bank holding company for the Capital One Bank (USA), National Association and Capital One, National Association, which provide various financial products and services in the United States, Canada, and the United Kingdom. The company offers various non-interest bearing and interest-bearing deposits, including demand deposits, money market deposits, negotiable order of withdrawal accounts, savings accounts, certificates of deposit, foreign time deposits, and other consumer time deposits. Its loan portfolio consists of credit card loans; consumer loans, such as automobile, home, and retail banking loans; and commercial loans, including commercial and multifamily real estate, middle market, specialty lending, and small-ticket commercial real estate loans. In addition, the company offers credit and debit card products, and mortgage banking and treasury management services.

MSM - MSC Industrial Direct Co., Inc., together with its subsidiaries, operates as a direct marketer and distributor of metalworking and maintenance, repair, and operations (MRO) products to industrial customers in the United States. It offers approximately 600,000 stock-keeping units representing a range of MRO products, including cutting tools; measuring instruments; tooling components; metalworking products; fasteners; flat stock; raw materials; abrasives; machinery hand and power tools; safety and janitorial supplies; plumbing supplies; materials handling products; power transmission; and electrical supplies. The company sells its products through its master catalogs, specialty and promotional catalogs, brochures, and the Internet to individual machine shops, Fortune 1000 companies, and government agencies, as well as markets to small, medium, and large companies in various sectors, including durable and non-durable goods manufacturing, education, and health care.

SAP - SAP AG provides business software primarily in Europe, the Middle East, Africa, the Americas, and the Asia Pacific Japan region. The company?s product portfolio includes SAP Business Suite software, which supports large organizations/international corporations in their core business operations, such as supplier relationship, production, warehouse management, sales, administration, and customer relationship; SAP Business All-in-One, a business management software that helps midsize companies in managing various business functions, including financials, human resources, procurement, inventory, manufacturing, logistics, product development, sales, and marketing; SAP Business One, a business management application for small businesses; and SAP Business ByDesign, an on-demand solution for integrated business management applications. Its product portfolio also comprises SAP BusinessObjects Edge business intelligence and enterprise performance management solutions; Xcelsius, a data visualization software; Crystal Reports, which helps users design interactive reports; Sybase IQ, an optimized analytics server designed to deliver results for business intelligence, analytics, data warehousing, and reporting solutions; SAP solutions for sustainability; and SAP NetWeaver technology platform, which integrates information and business processes across various technologies and organizational structures.

INFY - Infosys Ltd. provides information technology (IT) and consulting services worldwide. It offers IT services, such as application, architecture, independent validation and testing, information management, infrastructure, packaged application, SOA, systems integration, and knowledge services; product engineering services, manufacturing process and plant solutions, and product lifecycle management services; and consulting services in the areas of information and technology strategies, product innovation, next generation commerce, process excellence, and learning and complex change. The company also provides business process outsourcing solutions in the areas of business platforms, customer service outsourcing, finance and accounting, human resources outsourcing, legal services, sales and fulfillment, and sourcing and procurement outsourcing. In addition, it offers collaborative analytics solutions; digital consumer platform; Finacle universal banking solution; iProwe, a Web accessibility assessment product; mConnect, a real-time enterprise middleware; and research and analytical support services. Further, the company offers unified communications and collaboration solution that streamlines business processes between employees, customers, and suppliers; iTransform that helps healthcare organizations accelerate transition to new platforms; and supply chain visibility and collaboration product suite. It serves aerospace and defense, airlines, automotive, banking, capital markets, communication services, consumer packaged goods, manufacturing, education, energy, healthcare, high technology, hospitality and leisure, insurance, life sciences, logistics and distribution, publishing, resources, utilities, and retail industries. Infosys Ltd. has a strategic partnership with Alstom SA.

COST - Costco Wholesale Corporation operates membership warehouses that offer a selection of branded and private label products in a range of merchandise categories in no-frills, self-service warehouse facilities. The company's product categories include candy, snack foods, tobacco, alcoholic and non-alcoholic beverages, and cleaning and institutional supplies; appliances, electronics, health and beauty aids, hardware, office supplies, garden and patio, sporting goods, toys, seasonal items, and automotive supplies; dry and institutionally packaged foods; apparel, domestics, jewelry, house wares, media, home furnishings, cameras, and small appliances; meat, bakery, deli, and produce; and gas stations, pharmacy, food court, optical, one-hour photo, hearing aid, and travel.

TIF - Tiffany & Co., through its subsidiaries, engages in the design, manufacture, and retail of fine jewelry worldwide. Its jewelry products include fine and solitaire jewelry; diamond engagement rings and wedding bands for brides and grooms; and non-gemstone, sterling silver, gold, and platinum jewelry. The company also provides timepieces, sterling silver goods, china, crystal, stationery, fragrances, personal accessories, and leather goods. Tiffany & Co. sells its products through retail sales, Internet and catalog sales, business-to-business sales, and wholesale distribution primarily in the Americas, the Asia-Pacific, and Europe. The company also sells its products through its stores, as well as through department store boutiques in Japan. As of January 31, 2011, it operated 233 TIFFANY & CO. stores and boutiques worldwide.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.

Put credit spreads = bullish put spreads.