We are recommending the following credit spreads to start the September expiration cycle.

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

CTRP - Ctrip.com International, Ltd., together with its subsidiaries, provides travel services for hotel accommodations, airline tickets, and packaged tours in the PeopleÂ’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 PeopleÂ’s Republic of China.

CLF - Cliffs Natural Resources Inc., a mining and natural resources company, engages in the production of iron ore pellets, fines and lump ore, and metallurgical coal. It operates five iron ore mines located in Michigan and Minnesota; five metallurgical coal mines located in West Virginia and Alabama; and one thermal coal mine located in West Virginia. The company also operates two iron ore mines in eastern Canada that primarily provide iron ore to steel producers in Asia; and two iron ore mining complexes in Western Australia. In addition, it holds a 45% economic interest in a coking and thermal coal mine located in Queensland, Australia; 30% interest in Amapá, an iron ore project in Brazil; and interest in a chromite project in Ontario, Canada. The company, formerly known as Cleveland-Cliffs Inc, was founded in 1847 and is headquartered in Cleveland, Ohio.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.

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

RGLD - Royal Gold, Inc., together with its subsidiaries, engages in the acquisition and management of precious metals royalties and similar production based interests. It owns royalty interests in various producing and development stage projects that explore for gold, silver, copper, nickel, zinc, lead, cobalt, and molybdenum. As of August 9, 2012, the company owned interests on 193 properties on 6 continents, including interests on 39 producing mines and 26 development stage projects. It holds royalty interests in properties primarily located in the United States, Chile, Canada, Mexico, Spain, Africa, Australia, Argentina, Bolivia, Brazil, Burkina Faso, Colombia, the Dominican Republic, Finland, Ghana, Guatemala, Honduras, Nicaragua, Peru, Russia, and Tunisia. Royal Gold, Inc. was founded in 1981 and is based in Denver, Colorado.

VNO - Vornado Realty Trust is a privately owned real estate investment trust. The trust engages in investment, ownership, and management of commercial real estate. It invests in the real estate markets of United States. The trust primarily invests in office, industrial and retail properties. Vornado Realty Trust is based in New York, New York.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.

We will be adding a put spread on MNST to create an iron condor on our MNST position.

We are recommending the following specific credit spreads.

Put credit spreads = bullish call spreads.