We are recommending the following credit spreads to start out the MCM July 2012 expiration cycle.

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

AKAM - Akamai Technologies, Inc. provides content delivery and cloud infrastructure services for accelerating and improving applications over the Internet in the United States and internationally. The company offers application and cloud performance solutions to enhance the operation of the applications used by enterprises to connect with their employees, suppliers, and customers. Its solutions include Web Application Accelerator, which enables enterprises to run various applications; and IP Application Accelerator that is designed to optimize the performance, availability, and real-time sensitivity associated with IP-enabled applications delivered over Internet-related protocols. The company also provides video and software solutions that are designed to enable enterprises to execute their large file management and distribution strategies, which include media delivery solution to entertainment industry; and electronic software delivery solution that handles the distribution of software for its customers. In addition, it offers Website optimization services for accelerating business-to-consumer Websites that integrate collaborative content and applications into their online architecture; security and protection solutions that address the Internet security requirements; and network operator solutions, which provide custom solutions to commercial and government customers.

DB - Deutsche Bank Aktiengesellschaft provides investment, financial, and related products and services. The company?s Corporate and Investment Bank division engages in the origination, sale, structuring, and trading of bonds, equities and equity-linked products, exchange-traded and over-the-counter derivatives, foreign exchange, money market instruments, securitized instruments, and commodities to sovereign countries and multinational organizations; and medium-sized companies and multinational corporations. It also offers mergers and acquisitions advisory, corporate finance, and transaction banking, as well as trade finance, and trust and securities services for financial institutions and other companies. Its Private Clients and Asset Management division provides mutual funds and alternative investment products; wealth management services to high net worth individuals and families; and investment solutions to individual and institutional customers, as well as manages real estate and infrastructure investments, private equity funds, and insurance assets.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.

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

NFLX - Netflix, Inc. provides Internet subscription services for TV shows and movies in the United States and internationally. The company offers its subscribers to watch unlimited TV shows and movies streamed over the Internet to their TVs, computers, and mobile devices. It also provides standard definition DVDs and Blu-ray discs to its subscribers. The company was founded in 1997 and is headquartered in Los Gatos, California.

WHR - Whirlpool Corporation engages in the manufacture and marketing of home appliances worldwide. Its principal products include laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other portable household appliances. The company also produces hermetic compressors for refrigeration systems. It markets and distributes its products under various brand names, including Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Roper, Estate, Admiral, Gladiator, Inglis, Acros, Supermatic, Consul, Brastemp, Eslabón de Lujo, Bauknecht, Ignis, Laden, Polar, and Privileg in North and Latin America, Europe, the Middle East, Africa, and Asia. Whirlpool Corporation sells its products to retailers, dealers, distributors, builders, and other manufacturers.

CELG - Celgene Corporation, a biopharmaceutical company, discovers, develops, and commercializes various therapies to treat cancer and immune-inflammatory related diseases primarily in the United States and Europe. The company?s commercial stage products include REVLIMID, an oral immunomodulatory drug for the treatment of patients with multiple myeloma and myelodysplastic syndromes (MDS); VIDAZA, a pyrimidine nucleoside analog to treat various subtypes MDS and acute myeloid leukemia; and THALOMID for patients with multiple myeloma, and for the prevention and suppression of the cutaneous manifestation of erythema nodosum leprosum recurrence. It also offers ABRAXANE to treat metastatic breast cancer; and ISTODAX for the treatment of cutaneous and peripheral T-cell lymphoma. The company?s preclinical and clinical-stage products comprise Pomalidomide, a Phase III clinical trial product for the treatment of myelofibrosis and multiple myeloma; Apremilast, a Phase II and six Phase III trial product to treat psoriasis, and psoriatic and rheumatoid arthritis; CC-11050 to treat chronic inflammatory conditions, such as cutaneous lupus erythematosus; and Tanzisertib, a Phase II trial product for the treatment of idiopathic pulmonary fibrosis and discoid lupus. In addition, it develops Amrubicin, a synthetic anthracycline molecule; PDA-001 that is in Phase II trial for the treatment of Crohn?s disease, multiple sclerosis, rheumatoid arthritis, and sarcoidosis; and Sotatercept, a Phase II trial product to treat renal anemia, as well as CC-223, CC-115, and CC-122, which are in Phase I trials for the treatment of solid tumors, non-Hodgkin lymphoma, and multiple myeloma.

BIDU - Baidu, Inc. provides Internet search services. The company offers a Chinese language search platform on its Website, Baidu.com; and a Japanese language search platform on its Website, Baidu.jp. Its search services enable users to find relevant information online, including Web pages, news, images, documents, and multimedia files through the links provided on its Websites. The company also offers search products and Web directory; search-based community products; mobile search and related products; products and services for Websites and enterprises; e-commerce and entertainment products; and software and related search products. In addition, it provides online marketing and auction-based P4P services that enable its customers to reach users who search for information related to their products or services. The company serves online marketing customers consisting of small and medium sized enterprises, large domestic corporations, and Chinese divisions or subsidiaries of multinational corporations primarily operating in the medical, machinery, education, software and online games, tourism and ticketing, transportation, franchising, business services, electronic products, information technology services, financial services, construction and decoration, household appliances, and other industries. It sells its online marketing services directly, as well as through its distribution network. The company was formerly known as Baidu.com, Inc. and changed its name to Baidu, Inc. in December 2008. Baidu, Inc. was founded in 2000 and is headquartered in Beijing, the People?s Republic of China.

BA - The Boeing Company, together with its subsidiaries, engages in the design, development, manufacture, sale, and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. The company operates through five segments: Commercial Airplanes, Boeing Military Aircraft (BMA), Network and Space Systems (N&SS), Global Services and Support (GS&S), and Boeing Capital Corporation (BCC). The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for various passenger and cargo requirements, as well as provides related support services to the commercial airline industry. It also offers aviation services support, aircraft modifications, spares, training, maintenance documents, and technical advice to commercial and government customers. The BMA segment engages in the research, development, production, and modification of manned and unmanned military weapons systems for the global strike, mobility and surveillance, and engagement markets, as well as provides related services. The N&SS segment is involved in the research, development, production, and modification of products and services to assist its customers in transforming their operations through its network integration, information and cyber applications, command, control, communications, computers, intelligence, surveillance, and reconnaissance space exploration and satellites.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.

put credit spread = Bullish put spread.