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

We are recommending a credit spread for our Portfolio #1 in the following issue.

CLF - Cliffs Natural Resources Inc., a mining and natural resources company, engages in the production of iron ore pellets, fines and lump ore, and metallurgical coal. It operates five iron ore mines located in Michigan and Minnesota; five metallurgical coal mines located in West Virginia and Alabama; and one thermal coal mine located in West Virginia. The company also operates two iron ore mines in eastern Canada that primarily provide iron ore to steel producers in Asia; and two iron ore mining complexes in Western Australia. In addition, it holds a 45% economic interest in a coking and thermal coal mine located in Queensland, Australia; 30% interest in Amapá, an iron ore project in Brazil; and interest in a chromite project in Ontario, Canada. The company, formerly known as Cleveland-Cliffs Inc, was founded in 1847 and is headquartered in Cleveland, Ohio.

Call credit spread = Bearish call spread.

We are also adding a put spread on POT to complete an iron condor together with our existing call position on POT.

Put credit spread = Bullish Put spread.

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

VMW - VMware, Inc. provides virtualization infrastructure solutions in the United States and internationally. The companyÂ’s solutions enable organizations to aggregate multiple servers, storage infrastructure, and networks together into shared pools of capacity that can be allocated to applications as needed. Its cloud infrastructure products and technologies include its flagship data center platform, VMware vSphere, which enables users to deploy hypervisor, a layer of software that resides between the operating system and system hardware to enable compute virtualization; and vCloud Suite, an integrated solution for building and managing a cloud infrastructure optimized for use with the VMware vSphere platform. The company also provides end-user computing solutions, which are designed to enable a user-centric approach to personal computing, and secure access to applications and data from various devices and locations; and cloud application platform solutions providing open source application frameworks, application run-time, and data management solutions, as well as an open platform as a service. It sells its products through distributors, resellers, system vendors, and systems integrators. The company was incorporated in 1998 and is headquartered in Palo Alto, California. VMware, Inc. operates as a subsidiary of EMC Corporation.

BIDU - Baidu, Inc. provides Internet search services. The company offers a Chinese language search platform on its Baidu.com Website that enables users to find relevant information online, including Web pages, news, images, documents, and multimedia files, through links provided on its Website; and various international products and services in local languages to users in other countries, including its Japanese search services at Baidu.jp. It also provides search products and Web directory; mobile search and related products; social products; UGC-based knowledge products; location-based products and services; music products; PC client software; products and services for Websites and developers; and Web, image, and video search services. In addition, the company offers online marketing services based on search queries, contextuals, search behaviors of Internet users, display placements, social attributes, and other forms; and brand advertising services, and auction-based P4P services. Baidu serves online marketing customers consisting of small and medium sized enterprises, large domestic companies, and Chinese divisions or subsidiaries of multinational corporations primarily operating in the medical, machinery, education, electronic commerce, software and online games, tourism and ticketing, transportation, franchising, business services, electronic products, information technology services, financial services, construction and decoration, and household appliances. It sells its online marketing services directly, as well as through its distribution network. The company was formerly known as Baidu.com, Inc. and changed its name to Baidu, Inc. in December 2008. Baidu, Inc. was founded in 2000 and is headquartered in Beijing, the PeopleÂ’s Republic of China.

Call credit spread = Bearish call spread.