We are recommending the following credit spreads to our October expiration cycle.

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

ESI - ITT Educational Services, Inc. provides postsecondary degree programs in the United States. It offers master, bachelor, associate, and career-oriented education programs in various fields, such as information technology, electronics technology, drafting and design, business, criminal justice, and nursing and health sciences. The companyÂ’s information technology programs include communications, network administration, technical support, network technology, and systems technology; and electronics technology programs comprise communications, computer technology, electronics product design and fabrication, industrial electronics, instrumentation, and telecommunications. Its drafting and design programs comprise architectural and construction drafting, civil drafting, computer aided drafting, electrical and electronics drafting, interior design, landscape architecture, mechanical drafting, and multimedia communications; business programs include accounting, business administration, financial services, manufacturing, marketing and advertising, and sales; and criminal justice programs consist of corrections, cyber security, investigations, and security and policing.

MMR - McMoRan Exploration Co. engages in the exploration, development, and production of oil and natural gas in the shallow waters of the Gulf of Mexico and onshore in the Gulf Coast area of the United States. It is involved in lifting oil and natural gas to the surface; and gathering, treating, and processing hydrocarbons to extract liquids, such as ethane, propane, butane, and natural gasolines from natural gas. The company also provides exploration and production technologies, including the incorporation of 3-D seismic interpretation, offshore drilling to total depths, and horizontal drilling. The company owns or controls interests in 951 oil and gas leases in the Gulf of Mexico, and onshore Louisiana and Texas covering approximately 556,000 net acres. As of December 31, 2011, it had proved oil and natural gas reserves totaling 255.8 billion cubic feet equivalent. McMoRan Exploration Co.

URI - United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It offers approximately 3,000 classes of equipment for rent to customers comprising construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. The companyÂ’s fleet of rental equipment includes general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms consisting of boom lifts and scissor lifts; and general tools and light equipment, including pressure washers, water pumps, generators, heaters, and power tools. Its fleet also comprise trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; and power and heating, ventilating, and air conditioning (HVAC) equipment, which consists of portable diesel generators, electrical distribution equipment, and temperature control equipment, including heating and cooling equipment. In addition, the company sells new and used equipment, as well as related contractor supplies, parts, and service; and offers repair, maintenance, and rental protection services. Further, it develops and markets RENTALMAN, an enterprise resource planning application for equipment rental companies; and INFOMANAGER, which offers solution for creating a business intelligence system.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.

We are recommending the following specific credit spreads.

Put credit spreads = Bullish Put spreads.

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

PXD - Pioneer Natural Resources Company operates as an independent oil and gas exploration and production company in the United States and South Africa. The company produces and sells oil, natural gas liquid (NGL), and gas. Its proved reserves are primarily located in the Spraberry field in the Permian Basin area, the Hugoton and West Panhandle fields in the Mid-Continent area, and the Raton field in the Rocky Mountains area; and development and exploration activities are located in the Spraberry field, Raton field, Eagle Ford Shale play, Barnett Shale Combo play, and Alaska.

COH - Coach, Inc. engages in the design, marketing, and distribution of handbags, accessories, wearables, footwear, jewelry, sunwear, travel bags, watches, and fragrances for women and men in the United States and internationally. The company offers women handbags, as well as business cases, computer bags, messenger-style bags, and totes for men. Its accessories comprise small leather goods consisting of money pieces, wristlets, and cosmetic cases for women, as well as wallets and card cases for men; novelty accessories comprising time management and electronic accessories, key rings, and charms; and belts. The companyÂ’s wearables consist of scarves, jackets, gloves, and hats; jewelry covers bangle bracelets, necklaces, rings, and earrings made with sterling silver and non-precious metals; travel bags comprise luggage, travel kits, and valet trays; and womenÂ’s fragrance collections consist of eau de perfume spray, eau de toilette spray, purse spray, body lotion, and body splashes. It manufactures its products through independent manufacturers. The company also licenses rights to distribute the Coach brand products, including footwear, eyewear, watches, and fragrances. It markets its products directly to consumers through a network of company-operated stores in North America, Japan, Hong Kong, Macau, mainland China, Taiwan, and Singapore, as well as the Internet; and through department stores, specialty stores, and other online retailers.

We are recommending the following specific credit spreads.

Put credit spreads = bullish put spreads.