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

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

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.

NUAN - Nuance Communications, Inc. provides voice and language solutions for businesses and consumers worldwide. It provides dictation and transcription solutions and services that enable platforms to generate and distribute clinical documentation; clinical documentation improvement programs; and speech recognition solutions for radiology, cardiology, pathology, and related specialties enabling healthcare providers to dictate, edit, and sign reports without manual transcription. The company also offers mobile and consumer solutions comprising voice control and text-to-speech solutions; dictation applications; predictive text technologies; mobile messaging services; and dictation, Web search, and voicemail-to-text services for use in phones, cars, tablets, desktop and portable computers, personal navigation devices, and other consumer electronics. In addition, it provides customer service business intelligence and authentication solutions, such as speech recognition, natural language understanding, text-to-speech, biometric voice recognition, and analytics for enterprises in the telecommunications, financial services, travel, entertainment, and government sectors to support, understand, and communicate with customers. Further, the company offers document imaging, print management, and PDF solutions to printer manufacturers, home offices, small businesses, and enterprise customers; and software development toolkits to independent software vendors, as well as licenses its software to printer manufacturers. Nuance Communications, Inc. markets and sells its products through direct sales force and a network of resellers, and its e-commerce Website. It has a strategic collaboration with AutoNavi Holdings Limited to integrate voice and navigation data.

NEM - Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. The company?s assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, Mexico, and New Zealand. As of December 31, 2012, it had proven and probable gold reserves of approximately 99.2 million ounces and an aggregate land position of approximately 29,000 square miles. The company was founded in 1916 and is headquartered in Greenwood Village, Colorado.

PBR - Petróleo Brasileiro S.A. - Petrobras operates as an integrated oil and gas company in Brazil and internationally. Its Exploration and Production segment engages in the exploration, development, and production activities; sale and transfer of crude oil in domestic and foreign markets; and sale of oil products produced at natural gas processing plants. The company?s Refining, Transportation, and Marketing segment is involved in the refining, logistics, transportation, export, and purchase of crude oil, as well as in the purchase and sale of oil products and ethanol. This segment also engages in the extraction and processing of shale. This segment?s products include gasoline, diesel, and residential liquefied petroleum gas. The company?s Gas and Power segment engages in the transportation and trade of natural gas; transportation and trade of liquid natural gas; generation and trade of electric power; holds interests in natural gas distribution and thermoelectric power stations; and fertilizer business. Its Biofuel segment engages in the production of biodiesel and its co-products, as well as in the production and marketing of ethanol, sugar, and the excess electric power generated from sugarcane bagasse.

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.

LULU - Lululemon athletica Inc., together with its subsidiaries, designs, manufactures, and distributes athletic apparel and accessories for women, men, and female youth. It operates in three segments: Corporate-Owned Stores, Direct To Consumer, and Other. The company?s line of apparel include fitness pants, shorts, tops, and jackets for healthy lifestyle activities, such as yoga, running, and general fitness. Its fitness-related accessories comprise bags, socks, underwear, yoga mats, instructional yoga DVDs, and water bottles. The company sells its products through a chain of corporate-owned and operated stores; direct to consumer through e-commerce Websites; and a network of wholesale channel, such as premium yoga studios, health clubs, and fitness centers. As of February 3, 2013, it operated 135 stores in the United States, 51 stores in Canada, 23 stores in Australia, and 2 stores in New Zealand under the lululemon athletica and ivivva athletica brand names. lululemon athletica inc. was founded in 1998 and is based in Vancouver, Canada.

VMW - VMware, Inc. provides virtualization infrastructure solutions in the United States and internationally. The company?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.

LLY - Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products worldwide. The company?s neuroscience products treat major depressive disorders; schizophrenia, acute mixed or manic episodes associated with bipolar I disorder, and bipolar maintenance; attention-deficit hyperactivity disorder; depressive disorder, obsessive-compulsive disorder, bulimia nervosa, and panic disorder; bipolar depression and treatment-resistant depression; and brain imaging of beta-amyloid plaques. Its endocrinology products treat diabetes; osteoporosis in postmenopausal women and men at high risk of fracture; human growth hormone deficiency and pediatric growth conditions; and testosterone deficiency. The company?s oncology products treat malignant pleural mesothelioma; pancreatic, metastatic breast, non-small cell lung, ovarian, bladder, colorectal, and head and neck cancers, as well as cardiovascular products, which are used treat erectile dysfunction, benign prostatic hyperplasia, high cholesterol, pulmonary arterial hypertension; reduce thrombotic cardiovascular events; and used as adjunct to percutaneous coronary intervention. In addition, it provides animal health products, such as cattle feed additives; antibiotics to treat respiratory and other diseases in cattle, swine, and poultry; leanness and performance enhancers for swine and cattle; protein supplements to improve milk productivity in dairy cows; anticoccidial agents; antibiotics to control enteric infections in calves and swine; products to treat canine separation anxiety; products that prevent flea infestations on dogs, kills fleas, prevent heartworm disease, and control intestinal parasite infections; and other pharmaceutical products to treat staphylococcal and bacterial infections.

We are recommending the following specific credit spreads.

Call credit spreads = bearish Call spreads.