We are recommending the following credit spreads to start the January 2013 expiration cycle.

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

JCP - J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., operates department stores in the United States and Puerto Rico. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. It also provides various services, such as styling salon, optical, portrait photography, and custom decorating. As of June 7, 2012, the company operated 1,102 department stores. The company also sells its products through its Internet Web site, jcp.com. J. C. Penney Company, Inc. has strategic alliance with Martha Stewart Living Omnimedia, Inc.

UA - Under Armour, Inc. engages in the design, development, marketing, and distribution of apparel, footwear, and accessories for men, women, and youth worldwide. The company offers its apparel in three fit types: compression, fitted, and loose that are designed to be worn in hot, cold, and changing temperatures. Its footwear products include football, baseball, lacrosse, softball and soccer cleats, as well as slides, performance training footwear, running footwear, basketball footwear, and hunting boots for athletes. The companyÂ’s accessories comprise baseball batting, football, golf, and running gloves; and licensees offer socks, team uniforms, baby and kidsÂ’ apparel, eyewear, and custom-molded mouth guards, as well as hats and bags. Under Armour, Inc. sells its products primarily under the UA and UNDER ARMOUR brands through wholesale channels, which include independent and specialty retailers, institutional athletic departments, leagues and teams, national and regional sporting goods chains, and department store chains; independent distributors; and directly to consumers through its own specialty and factory house stores, and Website. The company was founded in 1996 and is headquartered in Baltimore, Maryland.

LLY - Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products worldwide. The companyÂ’s neuroscience products treat schizophrenia, mixed/manic episodes, and bipolar maintenance; depression, diabetic peripheral neuropathic pain, anxiety disorders, fibromyalgia, and chronic musculoskeletal pain; attention-deficit hyperactivity disorders; obsessive-compulsive and panic disorders, and bulimia nervosa; and bipolar and treatment-resistant depression. Its endocrinology products treat diabetes; type 2 diabetes; osteoporosis in postmenopausal women and men at high risk of fracture; human growth hormone deficiency and pediatric growth conditions; and testosterone deficiency. The companyÂ’s oncology products treat malignant pleural mesothelioma; pancreatic, metastatic breast, non-small cell lung, ovarian, bladder, colorectal, and head and neck cancers, as well as cardiovascular products treat erectile dysfunction, benign prostatic hyperplasia, high cholesterol, pulmonary arterial hypertension; reduce thrombotic cardiovascular events; and used as adjunct to percutaneous coronary intervention. In addition, it provides animal health products, such as cattle feed additives; antibiotics to treat respiratory and other diseases in cattle, swine, and poultry; leanness and performance enhancers for swine and cattle; protein supplements to improve milk productivity in dairy cows; anticoccidial agents; antibiotics to control enteric infections in calves and swine; products to treat canine separation anxiety; products that prevent flea infestations on dogs, kills fleas, prevent heartworm disease, and control intestinal parasite infections; and other pharmaceutical products to treat staphylococcal and bacterial infections. The company distributes its products through independent wholesale distributors; and directly to pharmacies.

NEM - Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. The companyÂ’s assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, New Zealand, and Mexico. As of December 31, 2011, it had proven and probable gold reserves of approximately 98.8 million ounces and an aggregate land position of approximately 31,500 square miles. The company was founded in 1916 and is headquartered in Greenwood Village, Colorado.

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.

RRC - Range Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), and oil company. It engages in the acquisition, exploration, and development of natural gas and oil properties primarily in the Appalachian and southwestern regions of the United States. The company drills and produces shale tight gas, coal bed methane, conventional natural gas, natural gas liquids, and oil in Pennsylvania, Virginia, and West Virginia of the Appalachian region. It owns 5,051 net producing wells; approximately 3,400 miles of transportation and gas gathering lines; and 1.8 million gross acres under lease. The companyÂ’s drilling and producing activities in the southwestern United States cover the Permian Basin of West Texas, the Delaware Basin of New Mexico, the East Texas Basin, the Texas Panhandle, the Anadarko Basin of western Oklahoma, the Ardmore Basin of southern Oklahoma, the Nemaha Uplift of northern Oklahoma, and Kansas and Mississippi. It owns 1,636 net producing wells, as well as approximately 890,000 gross acres under lease. As of December 31, 2011, Range Resources Corporation had 5.1 Tcfe of proved reserves. It sells gas to utilities, marketing companies, mid stream companies, and industrial users; and natural gas liquids to natural gas processors and other purchasers or users of NGLs.

DVN - Devon Energy Corporation, an independent energy company, engages primarily in exploration, development, and production of oil, natural gas, and natural gas liquids. The company holds interest in various properties located in Rocky Mountains, Mid-Continent, Permian Basin, and Gulf Coast regions of the United States. It also owns oil and gas properties in Alberta, British Columbia, and Saskatchewan provinces of Canada. As of December 31, 2011, the company had total proved reserves of 3,005 million barrels of oil equivalent. It also operates approximately 24,000 wells. In addition, the company provides marketing and midstream services, such as selling natural gas liquids that are either extracted from the gas streams processed by its plants or purchased from third parties for marketing, and selling or gathering gas that moves through owned transport pipelines and unrelated third-party pipelines.

HD - The Home Depot, Inc., together with its subsidiaries, operates as a home improvement retailer. The companyÂ’s stores sell building materials, and home improvement and lawn and garden products to do-it-yourself, do-it-for-me (at D-I-F-M), and professional customers. It also offers installation services for D-I-F-M customers. The companyÂ’s installation programs include products, such as carpeting, flooring, cabinets, countertops, and water heaters. In addition, it provides installation services for products sold through its in-home sales programs, including roofing and siding products, windows, furnaces, and central air systems. The company serves home owners, professional remodelers, general contractors, repairmen, small business owners, and tradesmen. As of September 13, 2012, it operated 2,249 retail stores in the 50 states of the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico.

AEM - Agnico-Eagle Mines Limited, through its subsidiaries, engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. It primarily explores for gold, as well as silver, copper, zinc, and lead. The companyÂ’s flagship property includes the LaRonde mine located in the southern portion of the Abitibi volcanic belt, Canada. It also holds interests in properties located in the Abitibi region of northwest Quebec, Lapland region of northern Finland, Sierra Madre belt of northern Mexico, and the Kivalliq region of Nunavut Territory in northern Canada.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.