We are recommending the following credit spreads to the February expiration cycle.

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

HFC - HollyFrontier Corporation operates as an independent petroleum refiner and marketer in the United States. It produces light products, such as gasoline, diesel fuel, jet fuel, specialty lubricant products, liquefied petroleum gas, fuel oil, and specialty and modified asphalt. The company operates refineries in El Dorado, Kansas; Tulsa, Oklahoma; Artesia, New Mexico; Cheyenne, Wyoming; and Woods Cross, Utah. HollyFrontier operates 5 refineries with a combined crude oil processing capacity of 443,000 barrels per day. Its refineries serve markets in the Mid-Continent, Southwest, and Rocky Mountain regions of the United States.

FIRE - Sourcefire, Inc. provides intelligent Cybersecurity technologies to commercial enterprises and government agencies worldwide. The companyÂ’s network security products include Sourcefire appliances for detecting, blocking, and analyzing network traffic; Sourcefire IPS to examine network packets for threats; Sourcefire NGIPS to discover the characteristics and vulnerabilities of computing devices communicating on a network; Sourcefire NGIPS with Application Control to provide granular control of applications; Sourcefire NGFW that includes application control and firewall capabilities; and Sourcefire SSL Appliance, which decrypts SSL traffic for inspection by network security appliances. It also offers FireAMP, a malware protection solution that uses data analytics to discover, understand, and block malware outbreaks; and Sourcefire Defense Center that provides application programming interfaces to interoperate third-party systems, such as firewalls, routers, log management, security information event management, trouble ticketing, patch management systems, and other technologies.

VHC - VirnetX Holding Corporation develops software and technology solutions for securing real-time communications over the Internet. The companyÂ’s software and technology solutions include domain name registry and GABRIEL Connection Technology, which provide security platform for Internet-based applications, such as instant messaging, voice over Internet protocol, mobile services, streaming video, file transfer, and remote desktop. It also intends to provide a portfolio of licenses and services comprising VirnetX technology; GABRIEL Connection Technology software development kit, including object libraries, sample code, and testing and quality assurance tools, as well as documentation support services required by customers to implement the companyÂ’s technology; domain name registrar service; technical support; and secure domain name master registry and connection services.

SODA - SodaStream International Ltd. engages in the development, manufacture, and marketing of home beverage carbonation systems that enable consumers to transform ordinary tap water instantly into carbonated soft drinks and sparkling water. It offers a range of soda makers; exchangeable food-grade carbon-dioxide (CO2) cylinders and refills; reusable plastic (BPA-free) or glass carbonation bottles; and approximately 150 flavors comprising regular or diet, such as cola, lemon-lime, orange, a range of all-naturals, fruits, green teas, energy, mixers, Stevia-sweetened, and others. It sells its products through approximately 60,000 retail stores in 45 countries in the Americas, Europe, Middle East, Africa, and Asia-Pacific. In addition, it distributes Brita water filtration systems and other consumer products in Israel. The company sells its products under the SodaStream brand directly and through local distributors to retailers, as well as over the Internet.

STZ - Constellation Brands, Inc. produces and markets beverage alcohol in the United States and internationally. The companyÂ’s Constellation Wines North America segment produces, markets, and exports wine, as well as sells various wine brands across various categories, including table wine, sparkling wine, and dessert wine. It offers wine under the Robert Mondavi Brands, Clos du Bois, Blackstone, Estancia, Arbor Mist, Toasted Head, Simi, Black Box, Ravenswood, Rex Goliath, Kim Crawford, Franciscan Estate, Wild Horse, Ruffino, Nobilo, Mount Veeder, Inniskillin, and Jackson-Triggs brands; and spirits under the SVEDKA Vodka, Black Velvet Canadian Whisky, and Paul Masson Grande Amber Brandy brands. This segment also produces and markets wine kits and beverage alcohol refreshment drinks; and bulk wine and other related products and services. Constellation Brands, Inc.Â’s Crown Imports segment imports, markets, and sells beer primarily under the Modelo Brands that comprise Corona Extra, Corona Light, Coronita, Modelo Especial, Pacifico, Negra Modelo, and Victoria brands.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.

Put credit spreads = bullish put spreads.

We are also recommending a put spread on SHLD to complete an iron condor with our current call position on that issue.

This spread should not require any addition margin requirement when executed.

Put credit spread = bullish put spread.

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

SINA - SINA Corporation provides online media and mobile value-added services (MVAS) in the PeopleÂ’s Republic of China. It provides advertising, non-advertising, and free services through SINA.com, Weibo.com, and SINA Mobile. SINA.com offers free interest-based channels that provide region-focused format and content, including news, sports, automobile-related news, finance, entertainment, luxury, technology, digital, tools, collectibles, video, music, and wireless application protocol, as well as interactive platform for fashion-conscious users to share comments and ideas on a range of topics, such as health, cosmetics, and beauty. The company's micro blogging platform, Weibo.com, enables its users to follow the hottest topics being discussed online, as well as discussions related to people they know. Weibo accounts consist of celebrities, commercial enterprises, government entities, and grass root Internet users. Its SINA Mobile service allows users to receive news and information, download ring tones, mobile games and pictures, and participate in dating and friendship communities. The company also offers SINA Game, which serves as an interactive platform that provides users with downloads and gateway access to popular online games; SINA eReading, a shop for book reviews; SINA.net, an enterprise solutions platform to assist businesses and government bodies; and SINA Mall, an online shopping Website.

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.

We are recommending the following specific credit spreads.

Call credit spreads = bearish Call spreads.

put credit spreads = put spread spreads.

***BIDU - Earnings will be announced on 2/11/13 and expiration Friday is 2/15, so depending on where BIDU s trading on 2/8/13 we will determine whether to close the position out before earnings on 2/11/13.

I try to stay away from earnings reports but with earnings season our selection choices are a lot fewer than normal.

We are also recommending a put spread on RRC to complete an iron condor with our current call position on that issue.

This spread should not require any addition margin requirment when executed.

Put credit spread = bullish put spread.