We are recommending the following credit spreads for the October cycle.

By adding these positions we will be completing iron condors or iron butterflies on several of our current positions.

The addition of these positions will require no additional margin

These additional spreads should help us offset some losses, if we are forced to close out one of more of our current existing call credit spreads.

As with any position, these additional positions could lose money just as any of our current positions are capable of.

However, with the butterfly and the condors if the DB, PRU or XOM go against us this month either the call or the put side of these three positions ( DB, PRU and XOM ) will have to expire worthless if we are forced to take a loss on the other side.

We are recommending the following specific credit spreads.

Put credit spread = bullish put spread.

By adding the following put credit spreads we will be creating an iron condor on our DB and PRU positions.

Put credit spread = bullish put spread.

By adding this put spread to our XOM call spread position we will be creating an iron butterfly with our XOM position.