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

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

BHI - Baker Hughes Incorporated supplies oilfield services, products, and technology services and systems to the oil and natural gas industry worldwide. The company offers drilling and evaluation products and services, including drill bits for performance drilling, hole enlargement, and coring; conventional and rotary steerable systems; measurement-while-drilling and logging-while-drilling systems to perform reservoir navigation services; drilling optimization services; tools for coil tubing drilling and wellbore re-entry systems; coring drilling systems; surface logging systems; emulsion and water-based drilling fluids systems; and reservoir drill-in fluids, as well as fluids environmental services. Its drilling and evaluation products and services also comprise wireline services, such as tools for open hole and cased hole well logging to gather data to perform petrophysical and geophysical analysis; reservoir evaluation coring; casing perforation; fluid characterization; production logging; well integrity testing; pipe recovery; and seismic and micro seismic services.

VRSN - VeriSign, Inc. provides Internet infrastructure services to various networks worldwide. It offers registry services that operate the authoritative directory of .com, .net, .cc, .tv, and .name domain names, as well as the back-end systems for various for all .gov, .jobs, and .edu domain names. The company also provides network intelligence and availability services that provide infrastructure assurance to organizations comprising Verisign iDefense security intelligence services, managed domain name system services, and distributed denial of protection services. VeriSign, Inc. was founded in 1995 and is headquartered in Reston, Virginia.

VVUS - VIVUS, Inc., a biopharmaceutical company, is developing therapies to address obesity, sleep apnea, diabetes, and male sexual health. Its lead investigational product, Qnexa, has completed Phase 3 clinical trials for the treatment of obesity. Qnexa is also in Phase 2 clinical development for the treatment of type 2 diabetes and obstructive sleep apnea. The companyÂ’s investigational drug candidate also comprises avanafil, a Phase 3 clinical studies completed product to treat erectile dysfunction. VIVUS, Inc. has a licensing agreement with Mitsubishi Tanabe Pharma Corporation for the development and commercialization of Avanafil. The company was founded in 1991 and is headquartered in Mountain View, California.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.

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We are also adding a put spread on LLY, which when filled will complete an iron condor on our LLY position.

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

TIF - Tiffany & Co., through its subsidiaries, engages in the design, manufacture, and retail of fine jewelry worldwide. Its jewelry products include fine and solitaire jewelry; diamond engagement rings and wedding bands to brides and grooms; and non-gemstone, sterling silver, gold, and platinum jewelry. The company also provides timepieces, sterling silver goods, china, crystal, stationery, fragrances, personal accessories, and leather goods. Tiffany & Co. sells its products through retail sales, Internet and catalog sales, business-to-business sales, and wholesale distribution primarily in the Americas, the Asia-Pacific, Japan, and Europe. The company also sells its products through its stores, as well as through department store in Japan. As of April 30, 2012, it operated 251 stores, including 105 in the Americas, 59 in Asia-Pacific, 55 in Japan, and 32 in Europe.

JWN - Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States. It operates in two segments, Retail and Credit. The Retail segment offers a selection of brand name and private label merchandise. This segment sells its products through various channels, including Nordstrom full-line stores, off-price Nordstrom Rack stores, Jeffrey’ boutiques, philanthropic ‘treasure&bond’ store, and Last Chance clearance stores; and its online store, nordstrom.com, as well as through catalog and online private sale subsidiary ‘HauteLook’. As of December 3, 2012, it operated 240 stores in 31 states, including 117 full-line stores, 119 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure&bond store, and 1 clearance store. The Credit segment operates Nordstrom fsb, a federal savings bank, which provides a private label credit card, two Nordstrom VISA credit cards, and a debit card. Its credit and debit cards feature a shopping-based loyalty program. Nordstrom, Inc. was founded in 1901 and is based in Seattle, Washington.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.