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

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

COST - Costco Wholesale Corporation engages in the operation of membership warehouses. The company offers branded and private-label products in a range of merchandise categories. Its product categories include candy, snack foods, tobacco, alcoholic and nonalcoholic beverages, and cleaning and institutional supplies; appliances, electronics, health and beauty aids, hardware, office supplies, cameras, garden and patio, sporting goods, toys, seasonal items, and automotive supplies; dry and institutionally packaged foods; apparel, domestics, jewelry, house wares, media, home furnishings, and small appliances; and meat, bakery, deli, and produce. The company also engages in the operation of gas stations, pharmacies, food courts, optical dispensing centers, one-hour photo centers, hearing aid centers, and print shops and copy centers; and car wash and travel businesses. In addition, it provides business and gold star (individual) membership services. As of November 28, 2012, the company operated 618 warehouses, including 447 in the United States and Puerto Rico, 84 in Canada, 32 in Mexico, 22 in the United Kingdom, 13 in Japan, 9 in Taiwan, 8 in South Korea, and 3 in Australia. Further, it is involved in online businesses at costco.com in the United States and costco.ca in Canada.

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. The company was founded in 1837 and is headquartered in New York, New York.

We are recommending the following specific credit spreads.

put credit spreads = put spread spreads.