We are suggesting the following credit spreads to our March recommended list.

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

ANF - Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer of casual apparel for men, women, and kids. The company sells various products, including casual sportswear apparel comprising knit and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters, and outerwear; personal care products; and accessories for men, women, and kids under the Abercrombie & Fitch, abercrombie kids, and Hollister brands. It also offers bras, underwear, sleepwear, and at-home products for girls under the Gilly Hicks brand. Abercrombie & Fitch Co. sells its products through its stores; direct-to-consumer sales; and Websites, such as abercrombie.com, abercrombiekids.com, hollisterco.com, and gillyhicks.com. As of February 29, 2012, the company operated 1,045 stores, including 280 Abercrombie & Fitch stores, 154 abercrombie kids stores, 494 Hollister Co. stores, and 18 Gilly Hicks stores in the United States; and 14 Abercrombie & Fitch stores, 5 abercrombie kids stores, 77 Hollister Co. stores, and 3 Gilly Hicks stores internationally. Abercrombie & Fitch Co. was founded in 1892 and is headquartered in New Albany, Ohio.

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. The company was founded in 1902 and is based in Plano, Texas.

We are recommending the following specific credit spreads.

Call credit spreads = Bearish call spreads.

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

APA - Apache Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has exploration and production interests in the Permian, Central, Gulf of Mexico Shelf, Gulf of Mexico Deepwater, and Gulf Coast Onshore in the United States; British Columbia, Alberta, and Saskatchewan provinces in Canada; Egypt; offshore Western Australia in the Carnarvon basin; offshore the United Kingdom in the North Sea; and in the Neuquén, Rio Negro, Tierra del Fuego, and Mendoza provinces of Argentina. The company sells its natural gas to local distribution companies, utilities, end-users, integrated oil companies, and supply aggregators and marketers. As of December 31, 2011, it had total estimated proved reserves of 1,370 million barrels of oil of crude oil, condensate, and NGLs; and 9.7 trillion cubic feet of natural gas. The company was founded in 1954 and is based in Houston, Texas.

HUM - Humana Inc. operates as a health care company that offers a range of insurance products and health and wellness services that incorporate an integrated approach to lifelong well-being. Its Retail segment provides Medicare and commercial fully-insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products to individuals. The companyÂ’s Employer Group segment offers Medicare and commercial fully-insured medical and specialty health insurance benefits, as well as administrative services to employer groups. Its Health and Well-Being services segment provides primary care, pharmacy, integrated wellness, and home care services to members enrolled in its health plan, as well as to third parties that promote health and wellness.

CAT - Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. The companyÂ’s Construction Industries segment offers construction machinery and related parts, including backhoe, skid steer, multi-terrain, track-type, skid steer, compact, and wheel loaders; track, wheel, and mini excavators; track-type tractors; motor graders; and pipelayers for the heavy construction, general construction, mining and quarry, and aggregates markets. Its Resource Industries segment provides electric rope and hydraulic shovels, draglines, drills, forestry products, highwall miners, off-highway and articulated trucks, electric drive mining trucks, wheel tractor scrapers, compactors, mining trucks, wheel dozers, paving products, tunnel boring and underground mining equipment, electronics and control systems, industrial swing machines, and machinery components for mine, quarry, forestry, paving, tunneling, industrial, and waste customers. The companyÂ’s Power Systems segment offers reciprocating engine powered generator sets; integrated systems for the electric power generation industry; reciprocating engines, and integrated systems and solutions; turbines and turbine-related services; and diesel-electric locomotives and components, and rail-related products and services. Its Financial Products segment provides retail and wholesale financing alternatives for Caterpillar equipment, machinery, and engines; offers property, casualty, life, accident, and health insurance, as well as insurance brokerage services; and purchases short-term receivables.

We are recommending the following specific credit spreads.

Call credit spreads = Bearish call spreads.

We are recommending the following adjustment to our AMGN position in Portfolio #2.

We are recommending closing the AMGN 90/87.5 call spread for a NET DEBIT of $2.20/

BID/ASK is $2.10 - $2.30.

as usual we will look to split the bid/ask, but we will be closing out this spread and rolling up the position before the close unless otherwise notified.

After and only after closing out the AMGN 90/87.5 call spread above will we place the following.

We are then going to roll up and place the following call credit spread listed below on the AMGN 95/97.5 call strike prices. ( see below )