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.
BBRY - Research In Motion Limited, doing business as BlackBerry, engages in the design, manufacture, and
marketing of wireless solutions worldwide. It provides platforms and solutions for access to email, voice, instant
messaging, short message service, Internet and Intranet-based applications, and browsing through the development of
integrated hardware, software, and services. The companyÂ’s technology also enables an array of third party developers and
manufacturers to enhance their products and services through software development kits, wireless connectivity to data, and
third-party support programs. Its products, services, and embedded technologies include the BlackBerry wireless solution,
the BlackBerry Wireless Handheld product line, the BlackBerry PlayBook tablet, software development tools, and other
software and hardware. The company also provides BlackBerry Enterprise Service 10, an enterprise mobility management
solution for device management, and security and mobile applications management to BlackBerry smartphones, BlackBerry
PlayBook tablets, and BlackBerry 10 smartphones. In addition, the company offers development platform that allow third
party commercial and enterprise software developers to build and deploy custom applications to run on BlackBerry
smartphones; products and technologies to third party developers, wireless carriers, and enterprise customers to develop,
distribute, and manage these applications; and a range of software development tools. Further, it provides the BlackBerry
Messenger Social Apps Platform; and push, payments, advertising, location, map, analytics, and Scoreloop services, as well
as repair and maintenance services.
BBY - Best Buy Co., Inc. operates as an e-commerce and physical retailer of consumer electronics in the United
States, Europe, Canada, and China. The companyÂ’s stores offer video products, including televisions, e-readers, navigation
products, digital cameras and accessories, digital camcorders and accessories, and DVD and Blu-ray players; audio
products, such as MP3 players and accessories, home theater audio systems and components, and musical instruments; and
mobile electronics comprising car stereo and satellite radio products. Its stores also provide computing and mobile phone
products consisting of notebook and desktop computers, tablets, monitors, mobile phones and related subscription service
commissions, hard drives and other storage devices, and networking equipment, as well as office supplies and other related
accessories, such as printers; entertainment products, including video gaming hardware and software, DVDs, Blu-rays, CDs,
digital downloads, and computer software; and appliances. In addition, the company offers service contracts, extended
warranties, computer-related services, and product repair, as well as delivery and installation services for home
theaters, and mobile audio and appliances; and provides snacks and beverages. It operates retail stores and call centers,
as well as online retail operations under various brand names, such as Best Buy, Best Buy Mobile, The Carphone Warehouse,
Five Star, Future Shop, Geek Squad, Magnolia Audio Video, Pacific Sales, Cell Shop, Connect Pro, Best Buy Express, and The
Phone House. The company also operates BestBuy.com, BestBuy.ca, BestBuyMobile.com, CarphoneWarehouse.com, FutureShop.ca,
and PhoneHouse.com. Best Buy Co., Inc. has a strategic partnership with Microsoft Corporation to create the Windows
SHLD - Sears Holdings Corporation operates as a specialty retailer in the United States and Canada. The
companyÂ’s Kmart segment operates stores that sell merchandise under Jaclyn Smith and Joe Boxer labels; and Sears brand
products, such as Kenmore, Craftsman, and DieHard. This segmentÂ’s stores provide consumer electronics, seasonal
merchandise, outdoor living, toys, lawn and garden equipment, food and consumables, and apparel; and operate in-store
pharmacies. The companyÂ’s Sears Domestic segment operates stores that sell merchandise under the Kenmore, Craftsman,
DieHard, LandsÂ’ End, Covington, Apostrophe, and Canyon River Blues brand names. Its stores provide appliances, consumer
electronics, tools, sporting goods, outdoor living, lawn and garden equipment, home fashion products, apparel, footwear,
jewelry, accessories, health and beauty products, pantry goods, household products, and toys, as well as automotive
services and products. This segment also provides soft luggage; appliances and services to commercial customers in
single-family residential construction/remodel, property management, multi-family new construction, and
government/military sectors; premium appliance and plumbing fixtures to architects, designers, and new construction or
remodeling customers; parts and repair services for appliances, lawn and garden equipment, consumer electronics, floor
care products, and heating and cooling systems; and home improvement services. Sears Holdings CorporationÂ’s Sears Canada
segment engages in the retail of apparel and other softlines. The company operates approximately 2,019 full-line and 54
specialty retail stores in the United States; 475 full-line and specialty retail stores, as well as 1,512 catalog pick-up
locations, 9 home services showrooms, and 101 travel offices in Canada; and kmart.com and sears.com Websites.
MO - Altria Group, Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes, smokeless
products, and wine in the United States and internationally. It offers cigarettes primarily under the Marlboro brand;
smokeless tobacco products under the Copenhagen, Skoal, Red Seal, Husky, and Marlboro Snus brand names; cigars principally
under the Black & Mild brand; and pipe tobacco. The company also produces and sells blended table wines under the Chateau
Ste. Michelle and Columbia Crest names; and distributes Antinori and Villa Maria Estate wines, and Champagne Nicolas
Feuillatte in the United States. In addition, it maintains a portfolio of leveraged and direct finance leases in aircraft,
rail and surface transport, electric power, real estate, and manufacturing. The company sells its tobacco products
primarily to wholesalers, including distributors; large retail organizations, such as chain stores; and the armed
services. Altria Group, Inc. markets its wine products to restaurants, wholesale clubs, supermarkets, wine shops, and mass
merchandisers. The company was founded in 1919 and is headquartered in Richmond, Virginia.
JCP - J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., operates department
stores. 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 February 2, 2013, it operated 1,104 department stores in 49 states and Puerto Rico. The company also
sells its products through its Internet Website, jcp.com. The company was founded in 1902 and is based in Plano,
We are recommending the following specific credit spreads.
Call credit spreads = bearish call spreads.
We are recommending credit spreads for our Portfolio #2 in
the following issues.
FFIV - F5 Networks, Inc. provides application delivery networking technology that secures and optimizes the
delivery of network-based applications, and the security, performance, and availability of servers and other network
resources. It offers Local Traffic Manager, which provides intelligent load-balancing and traffic management; Global
Traffic Manager that automatically directs users to the closest or best-performing data center; Access Policy Manager,
which provides secure, granular, and context-aware control of access to applications; and Application Security Manager, an
application firewall. The company also provides Link Controller that monitors the health and availability of each
connection in organizations with more than one Internet service provider; WAN Optimization Manager, which integrates
application delivery with WAN optimization technologies; WebAccelerator that speeds Web transactions by optimizing
individual network object requests, connections, and end-to-end transactions from browser to databases; and Message
Security, which extends security for message applications to the edge of the corporate network and eliminates unwanted e-
mail. In addition, it offers BIG-IP and VIPRION application delivery controllers; Edge Gateway, a remote access product
that provides context-aware, policy controlled, and remote access to applications at LAN speed; Enterprise Manager, which
allows customers to discover and view its products in a single window; Traffix Signaling Delivery Controller for diameter
signaling and routing; and ARX product family, a series of high performance and enterprise-class intelligent file
virtualization devices. The company sells its products to enterprise customers and service providers through various
channels, including distributors, value-added resellers, and systems integrators in the Americas, the Middle East, Africa,
Japan, and the Asia Pacific. F5 Networks, Inc. was founded in 1996 and is headquartered in Seattle, Washington.
DD - E. I. du Pont de Nemours and Company operates as a science and technology based company worldwide. Its
Agriculture segment provides corn hybrid, soybean, canola, sunflower, sorghum, inoculants, wheat, and rice seed products
under the Pioneer brand; and herbicides, fungicides, and insecticides. The companyÂ’s Electronics and Communications segment
supplies materials and systems, including photopolymers and electronic materials for photovoltaic products, consumer
electronics, displays, and advanced printing. The Industrial Biosciences segment develops and manufactures a portfolio of
enzymes. The Nutrition and Health segment offers cultures, emulsifiers, gums, natural sweeteners, and soy-based food
ingredients. The Performance Chemicals segment offers industrial and specialty chemical products for markets, including
plastics and coatings, textiles, mining, pulp and paper, water treatment, and healthcare; titanium dioxide products; and
industrial and specialty fluorochemicals, fluoropolymers, and performance chemicals. The Performance Materials segment
provides thermoplastic and thermoset engineering polymers, elastomers, films, parts, and systems and solutions for the
automotive original equipment manufacturers and associated after-market industries, as well as electrical, electronics,
packaging, construction, oil, photovoltaics, aerospace, chemical processing, and consumer durable goods.
We are recommending the following specific credit spreads.
Call credit spreads = bearish Call spreads.