We are starting off the May in Portfolio #1 with the following credit spreads.

We are recommending credit spreads in the following issues for Portfolio #1.

AGo - Assured Guaranty Ltd., through its subsidiaries, provides credit protection products to public finance, infrastructure, and structured finance markets in the United States and internationally. The company offers insurance, reinsurance, and credit derivative products that protect holders of debt instruments and other monetary obligations from defaults in scheduled payments, including scheduled interest and principal payments. It provides policies issued directly to the holders of insured obligations at time of issuance and those issued in the secondary market; and assumed reinsurance contracts written to third parties. The company insures various types of securities, including taxable and tax-exempt obligations issued by the United States or municipal governmental authorities, utility districts, or facilities; notes or bonds issued to finance international infrastructure projects; and asset-backed securities issued by special purpose entities. Assured Guaranty Ltd. markets its credit protection products directly to issuers and underwriters of public finance, infrastructure, and structured finance securities, as well as to investors in such debt obligations. The company was founded in 2003 and is based in Hamilton, Bermuda.

CTRP - Ctrip.com International, Ltd., together with its subsidiaries, provides travel services for hotel accommodations, airline tickets, and packaged tours in the People?s Republic of China. It also offers independent leisure travelers bundled package-tour products, including group tours, semi-group tours, and private tours or packaged tours with various transportation arrangements, such as cruise, bus, or self-driving. In addition, the company provides integrated transportation and accommodation services; and various value-added services consisting of car rental, insurance, visa services, tour guides, transportation at destinations, and tickets. Further, it offers Internet-related advertising, aviation casualty insurance, and air-ticket delivery services. Additionally, the company sells Property Management System, a hotel information software; travel guidebooks, which provide information for independent travelers; and VIP membership cards that allow cardholders to receive discounts from various restaurants, clubs, and bars. Ctrip.com International, Ltd. was founded in 1999 and is headquartered in Shanghai, the People?s Republic of China.

RIMM - Research In Motion Limited designs, manufactures, and markets wireless solutions for the mobile communications market worldwide. It provides platforms and solutions for access to information, including email, voice, instant messaging, short message service, Internet and Intranet-based browsing, and multimedia content through developing integrated hardware, software, and services. The company?s BlackBerry smartphones use wireless, push-based technology that delivers data to mobile users? business and consumer applications. Its BlackBerry smartphone portfolio includes BlackBerry Bold series, BlackBerry Torch series, BlackBerry Curve series, and the BlackBerry PlayBook tablet. The company?s BlackBerry enterprise solutions comprise BlackBerry enterprise server, BlackBerry enterprise server express, BlackBerry mobile voice system, and hosted BlackBerry services. It also offers development platform that allow third party commercial and enterprise software developers to build and deploy custom applications to run on BlackBerry smartphones, and various products and technologies to third party developers, wireless carriers, and enterprise customers to develop distribute and manage these applications, as well as a range of software development tools. In addition, the company provides the BlackBerry Messenger Social Apps Platform; and push, payments, advertising, location, analytics, and scoreloop services, as well as the BlackBerry App World to discover and download/purchase of applications. Further, it offers BlackBerry Enterprise Server tools and technologies that enable secure and managed provisioning of applications; BlackBerry Enterprise App World that allows employees access to a catalogue of applications; and repair and maintenance services. The company sells its BlackBerry wireless solutions through global wireless communications carriers and third party distribution channels.

TRLG - True Religion Apparel, Inc. designs, develops, manufactures, markets, distributes, and sells apparel in North America, Europe, Asia, Australia, Africa, and South America. It offers fashion jeans and related sportswear apparel. The company provides various products for men, women, and children, including denim jeans; corduroy pants and jackets; cotton, twill, linen, and velvet pants and jackets; fleece sweat suits and hooded sweatshirts; sweaters; skirts; knit shirts; T-shirts; shorts; and sportswear. It sells apparel under the True Religion Brand Jeans brand name. The company sells its products through retail stores, wholesale sales teams, distributors, sales agents, boutiques, department stores, and specialty retailers, as well as through its Web site, truereligionbrandjeans.com. It also licenses its trademarks to third parties for manufacturing, marketing, and distributing various products. As of December 31, 2011, the company owned and operated 109 branded retail stores in the United States, 3 retail stores in Canada, 3 retail stores in Japan, 5 retail stores in the United Kingdom, 4 retail stores in Germany, and 1 retail store in the Netherlands. True Religion Apparel, Inc. was founded in 2002 and is headquartered in Vernon, California.

HAR - Harman International Industries, Incorporated engages in the development, manufacture, and marketing of audio products and electronic systems primarily in the United States, Germany, and other parts of Europe. Its Automotive segment offers audio, electronic, and infotainment systems for vehicle applications to be installed primarily as original equipment by automotive manufacturers under the JBL, Infinity, Mark Levinson, Harman/Kardon, Logic 7, Lexicon, and Becker brand names. This segment also develops, manufactures, sells, and services audio systems under the Bowers & Wilkins brand name; and produces Harman/Kardon branded infotainment systems for Harley-Davidson touring motorcycles. The company?s Consumer segment provides a range of audio and consumer electronics for home, multimedia, and mobile applications under the AKG, Harman/Kardon, Infinity, JBL, Mark Levinson, and Selenium brand names. This segment also provides transducers and built-in speakers for notebook computers; audio systems for personal computers; and aftermarket mobile products, including speakers, amplifiers, and digital signal processors. Harman International?s Professional segment offers a range of loudspeakers, power amplifiers, digital signal processors, microphones, headphones, and mixing consoles used by audio professionals in concert halls, stadiums, airports, houses of worship, and other public spaces. This segment markets its products under the JBL Professional, AKG, Crown, Soundcraft, Lexicon, DigiTech, dbx, BSS, Studer, and Selenium brand names. The company also provides on-demand mobile and location-based Internet content services. Harman International Industries, Incorporated was founded in 1980 and is headquartered in Stamford, Connecticut.

We are recommending the following specific credit spreads for Portfolio #1.

Call credit spreads = bearish call spreads.

We are starting off the May in Portfolio #2 with the following credit spreads.

We are recommending credit spreads in the following issues for Portfolio #2.

SHLD - Sears Holdings Corporation operates as a specialty retailer in the United States and Canada. The company?s Kmart segment operates stores that sell merchandise under Jaclyn Smith and Joe Boxer labels; and Sears brand products, such as Kenmore, Craftsman, and DieHard. This segment?s stores provide consumer electronics, seasonal merchandise, outdoor living, toys, lawn and garden equipment, food and consumables, and apparel, as well as operate in-store pharmacies. Its Sears Domestic segment operates stores that sell merchandise under the Kenmore, Craftsman, DieHard, Lands? End, Covington, Apostrophe, and Canyon River Blues brand names. This segment?s stores provide appliances, consumer electronics, tools, sporting goods, outdoor living, lawn and garden equipment, home fashion products, automotive products, apparel, footwear, jewelry, accessories, health and beauty products, pantry goods, household products, and toys. The Sears Domestic segment also provides clothing, accessories, footwear, and soft luggage; appliances and services to commercial customers in single-family residential construction/remodel, property management, multi-family new construction, and government/military sectors; premium appliance and plumbing fixtures to architects, designers, and new construction or remodeling customers; parts and repair services for appliances, lawn and garden equipment, consumer electronics, floor care products, and heating and cooling systems; and home improvement services. The company?s Sears Canada segment engages in the retail of apparel and other softlines. Sears Holdings Corporation operates approximately 2,172 full-line stores and 1,338 specialty retail stores in the United States; 500 full-line and specialty retail stores in Canada, as well as operates 17 floor covering stores, 1,734 catalog pick-up locations, and 108 travel offices; and kmart.com and sears.ca Websites. The company was founded in 1899 and is based in Hoffman Estates, Illinois.

RL - Ralph Lauren Corporation, together with its subsidiaries, engages in the design, marketing, and distribution of lifestyle products. The company offers men?s, women?s, and children?s clothing; and accessories comprising footwear, eyewear, watches, jewelry, hats, and belts, as well as leather goods, including handbags and luggage. It also provides products for homes, including bedding and bath products, furniture, fabric and wallpaper, paint, tabletop, and giftware; and fragrance products for women men. In addition, the company licenses its products, such as men?s sportswear, men?s tailored clothing, men?s underwear and sleepwear, eyewear, fragrances, cosmetics, and color and skin care products. It offers its products under the Polo by Ralph Lauren, Ralph Lauren Purple Label, Ralph Lauren Women?s Collection, Black Label, Blue Label, Lauren by Ralph Lauren, RRL, RLX, Rugby, Ralph Lauren Childrenswear, American Living, Chaps, and Club Monaco brand names. Ralph Lauren sells its products to department stores, specialty stores, and golf and pro shops; full-price retail stores, factory retail stores, and concessions-based shop-within-shops; and online through RalphLauren.com and Rugby.com. As of April 3, 2010, it operated 179 full-price retail stores and 171 factory stores worldwide, as well as 281 concessions-based shop-within-shops and 2 e-commerce Websites. The company was formerly known as Polo Ralph Lauren Corporation and changed its name to Ralph Lauren Corporation in August 2011. Ralph Lauren Corporation was founded in 1967 and is based in New York, New York.

We are recommending the following specific credit spreads for Portfolio #2.

call credit spreads = bearish call spreads.