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

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

FE - FirstEnergy Corp., a diversified energy holding company, engages in the generation, transmission, and distribution of electricity in the United States. The company operates in Regulated Distribution, Regulated Transmission, and Competitive Energy Services segments. It owns and operates fossil, hydroelectric, nuclear, and wind and solar generating facilities. The company also provides energy-related products and services to wholesale and retail customers. It operates an electric distribution system, including 266,757 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits, as well as owns substations with a total installed transformer capacity of approximately 144,776,431 kilovolt-amperes. The company distributes electricity through 10 utility operating companies within 65,000 square miles in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy Corp. was founded in 1996 and is headquartered in Akron, Ohio.

PAAS - Pan American Silver Corp. engages in the exploration, development, and operation of silver producing properties and assets. It produces and sells silver, gold, copper, lead, and zinc. The company holds interests in Huaron, Morococha, Quiruvilca, Alamo Dorado, Dolores, La Colorada, Manantial Espejo, and San Vicente producing mines in Mexico, Peru, Argentina, and Bolivia. Pan American Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.

TPX - Tempur-Pedic International Inc. engages in the manufacture, marketing, and distribution of bedding products in North America and internationally. It offers mattresses, pillows, and adjustable bed bases, as well as various cushions and other comfort products. It offers mattresses, pillows, and adjustable bed bases, as well as various cushions and other comfort products under TEMPUR and Tempur-Pedic brand names. The company sells its products through furniture and bedding retailers, department stores, hospitals, nursing homes, healthcare professionals, and medical retailers, as well as through its call center operations, company-owned stores, third party distributors, and Internet. Tempur-Pedic International Inc. was founded in 1989 and is headquartered in Lexington, Kentucky.

RVBD - Riverbed Technology, Inc. provides solutions to the fundamental problems associated with information technology (IT) performance across wide area networks (WANs) in the United States and internationally. It offers Steelhead products, which enable customers to enhance the performance of applications and access data across WANs. The companyÂ’s Steelhead products include the Steelhead Mobile that provides mobile workers with LAN-like access to corporate files and applications; Virtual Steelhead appliance to extend the WAN optimization; Cloud Steelhead, a solution for public cloud computing environments; Central Management Console that provides centralized configuration, monitoring, and control for deploying and managing Steelhead products across a WAN; and Interceptor appliance, which allows organizations to scale their WAN optimization solutions. It also offers Granite appliances that allow IT to consolidate servers and storage from branch offices to the data center without compromising branch application performance; and Cascade appliances, which help organizations to manage, secure, and optimize the availability and performance of global applications. In addition, the company provides OPNET products that use various technologies to support the analysis of application, network, and server performance under a range of conditions; Stingray product line, which provides virtual application delivery control; and Whitewater, a cloud storage appliance to accelerate, deduplicate, secure, and store backup data sets in the public cloud.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.

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

INTU - Intuit Inc. provides business and financial management solutions for small businesses, consumers, accounting professionals, and financial institutions primarily in the United States, Canada, the United Kingdom, India, and Singapore. It offers QuickBooks financial and business management software and services; QuickBooks technical support; financial supplies; Demandforce, which provides online marketing and customer communication solutions; payroll products and services; merchant services, including credit and debit card processing; electronic check conversion and automated clearing house services; Web-based transaction processing services for online merchants; and GoPayment mobile payment processing services. The company also provides TurboTax income tax preparation products and services for consumers and small business owners; Lacerte and ProSeries professional tax products and services; and QuickBooks Premier Accountant Edition and the QuickBooks ProAdvisor Program for accounting professionals. In addition, it offers online and mobile banking solutions for financial institutions; Quicken line of desktop software products to reconcile bank accounts, pay bills, record credit card, and other transactions, as well as to track investments, mortgages, and other assets and liabilities; Mint personal finance service that shows various financial accounts in one online location; and Intuit Health online patient-to-provider communication solutions.

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.

ED - Consolidated Edison, Inc., through its subsidiaries, engages in regulated electric, gas, and steam delivery businesses. The company, through its subsidiary, Consolidated Edison Company of New York, Inc., provides electric services to approximately 3.3 million customers in New York City and Westchester County; gas to approximately 1.1 million customers in Manhattan, the Bronx and parts of Queens, and Westchester County; and steam to approximately 1,717 customers in parts of Manhattan. It operates 62 area distribution substations and various distribution facilities; 39 transmission substations and 62 area stations; electricity generation plants with an aggregate capacity of 706 megawatts that run with gas and fuel oil; 4,360 miles of mains and 387,881 service lines for natural gas distribution; and 5 steam-only generating stations. The company, through its subsidiary, Orange and Rockland Utilities, Inc., also supplies electricity to approximately 0.3 million customers in southeastern New York, and in adjacent areas of northern New Jersey and northeastern Pennsylvania; and gas to approximately 0.1 million customers in southeastern New York and adjacent areas of northeastern Pennsylvania. It operates 555 circuit miles of transmission lines; 14 transmission substations; 62 distribution substations; 85,474 in-service line transformers; 3,781 pole miles of overhead distribution lines; and 1,794 miles of underground distribution lines, as well as 1,777 miles of mains for natural gas distribution and 77 miles of mains for natural gas transmission.

We are recommending the following specific credit spreads.

Call credit spreads = bearish Call spreads.