We are recommending the following credit spreads to add to our Novemberoption cycle.

We are recommending credit spreads in the following issues.

APKT - Acme Packet, Inc. provides session delivery network solutions that enable the delivery of interactive communications, such as voice, video, and multimedia sessions; and data services across internet protocol (IP) network borders. Its Net-Net product family consists of session border controllers (SBCs), session aware load balancers, session routing proxies, and multiservice security gateways, which supports multiple applications in enterprise networks and fixed line, mobile, over-the-top, and application service provider networks. These applications range from voice over IP, trunking to hosted enterprise, and residential services to fixed-mobile convergence. The company offers Acme Packet Net-Net OS, a software platform that offers border control functionality in terms of architectural flexibility, signaling protocol breadth, control function and feature depth, and carrier class availability and manageability.

CREE - Cree, Inc. develops and manufactures light emitting diodes (LEDs), LED lighting, and semiconductor solutions for wireless and power applications. Its LED products include blue and green LED chips that are used in various applications, including video screens, gaming displays, function indicator lights, and automotive backlighting; LED components comprising a range of packaged LED products and LED modules for lighting applications; LED lighting products, such as LED downlights, LED troffers, and LED lamps or bulbs for construction, retrofit, and renovation projects in commercial, governmental, and residential applications; and silicon carbide (SiC) wafers, which are used in the manufacture of optoelectronics, microwave, power switching, and other applications.

LULU - Lululemon Athletica Inc., together with its subsidiaries engages in the design, manufacture, and distribution of athletic apparel and accessories for women, men, and female youth primarily in Canada, the United States, and Australia. Its apparel assortments include fitness pants, shorts, tops, and jackets for healthy lifestyle activities, such as yoga, running, and general fitness. The companyÂ’s fitness-related accessories comprise bags, socks, underwear, yoga mats, instructional yoga DVDs, and water bottles. It sells its products through its retail stores; independent franchises; and a network of wholesale accounts, such as yoga studios, health clubs, and fitness centers, as well as directly to consumers through e-commerce. As of May 1, 2011, the company had 142 corporate-owned and franchise stores under the lululemon athletica and ivivva athletica brand names.

WDC - Western Digital Corporation, through its subsidiaries, provides solutions for the collection, storage, management, protection, and use of digital content primarily audio and video worldwide. The companyÂ’s principal product includes hard drives comprising 3.5-inch and 2.5-inch form factors. It provides client compute storage products, such as hard drives under the WD Caviar and WD Scorpio brand names; and solid-state drives under the brand name of WD Silicon Edge for desktop and mobile personal computers (PCs). The company also offers client non-compute storage products, which comprise storage appliances under the My Book, WD Elements Desktop, My Passport, and WD Elements brand names; media players under the WD TV brand name; WD ShareSpace, a network-attached storage system; and WD Livewire, which enables consumers to use their existing electrical outlets to extend Internet connections, as well as offers consumer electronics products under the WD AV brand name for use in DVRs, and audio and video applications. In addition, it provides enterprise storage products, such as hard drives for enterprise and nearline storage applications under the WD S25, WD VelociRaptor, and WD RE brand names; and solid-state drives for embedded applications under the brand name of WD SiliconDrive.

VZ - Verizon Communications Inc. provides communication services. The company operates through two segments, Domestic Wireless and Wireline. The Domestic Wireless segment offers wireless voice and data services; and sells equipment in the United States. The Wireline segment provides voice, Internet access, broadband video and data, Internet protocol network, network access, long distance, and other services in the United States and internationally. The company serves consumer, business, and government customers, as well as carriers. As of December 31, 2010, its network covered a population of approximately 292 million and provided service to a customer base of approximately 94.1 million. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc.

FDX - FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. The FedEx Express segment offers various shipping services for the delivery of packages and freight. This segment also provides international trade services specializing in customs brokerage, and ocean and air freight forwarding services; customs clearance services, as well as global trade data, an information tool that allows customers to track and manage imports; and international trade advisory services, including assistance with the customs-trade partnership against terrorism program, as well as publishes customs duty and tax information in various customs areas. In addition, it offers supply chain solutions, including critical inventory logistics, transportation management, and temperature-controlled transportation services. The FedEx Ground segment provides business and residential ground package delivery services. It primarily serves customers in the small-package market in North America. The FedEx Freight segment offers less-than-truckload freight services, as well as freight-shipping services. As of May 31, 2011, this segment operated approximately 58,000 vehicles and trailers from a network of 366 service centers.

SLB - Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The companyÂ’s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.

Put credit spreads = bullish put spreads.