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

It took a lot of searching as it seems that just about everyone is reporting earnings.

There will be a lot of slim pickings until a number of these companies report.

NOTE: JCP -J.C. Penney will be reporting on expiration day in August, so whether it is before or after the market action on that Friday we can adjust accordingly.

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

LEN - Lennar Corporation, together with its subsidiaries, engages in homebuilding, financial services, and real estate businesses in the United States. The company operates in Homebuilding East, Homebuilding Central, Homebuilding West, Homebuilding Southeast Florida, Homebuilding Houston, Financial Services, and Rialto Investments segments. Its homebuilding activities primarily include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land. The company also offers financial services, including mortgage financing, title insurance, and closing services for buyers and others. In addition, it is involved in sourcing, underwriting, pricing, managing, and monetizing real estate and real estate related assets, as well as provision of real estate capital and asset management services. As of November 30, 2012, the company owned 107,138 homesites and had access through option contracts to an additional 21,346 homesites. Lennar Corporation was founded in 1954 and is headquartered in Miami, Florida.

KBH - KB Home operates as a homebuilding and financial services company in the United States. The company constructs and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, move-up, and active adult homebuyers. It also provides title and insurance services to homebuyers. As of November 30, 2012, the company delivered 6,282 homes. It has operations in Arizona, California, Colorado, Florida, Maryland, Nevada, New Mexico, North Carolina, Texas, and Virginia. The company was formerly known as Kaufman and Broad Home Corporation and changed its name to KB Home in 2001. KB Home was founded in 1957 and is headquartered in Los Angeles, California.

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, Texas.

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.

ACN - Accenture plc provides management consulting, technology, and business process outsourcing services worldwide. It offers various management consulting services in the areas of finance and enterprise performance, operations, risk management, sales and customer service, strategy, sustainability, and talent and organization management, as well as provides industry-specific management consulting services. The company also offers system integration consulting services and solutions, including enterprise solutions and enterprise resource planning, industry and functional solutions, information management services, custom solutions, and Microsoft solutions; and technology consulting services and solutions comprising information technology (IT) strategy, infrastructure consulting, IT security consulting, and application modernization and optimization. In addition, it provides technology outsourcing services, which include application outsourcing services; infrastructure outsourcing services in service desk, workplace, data-center, network, security, and IT spend management service areas; cloud computing services; and mobility and embedded software services. Further, the company provides business process outsourcing (BPO) services for business functions and/or processes, including finance and accounting, human resources, learning and procurement, and others, as well as industry-specific BPO services, such as credit services. It serves communications, electronics and high technology, media and entertainment, banking, capital markets, insurance, health, public service, airlines, freight and logistics, automotive, consumer goods and service, industrial equipment, infrastructure and transportation service, life sciences, retail, chemical, energy, natural resources, and utility industries. Accenture plc has a strategic collaboration with Marriott International, Inc. The company was founded in 1995 and is based in Dublin, Ireland.

DRI - Darden Restaurants, Inc. owns and operates full service restaurants in the United States and Canada. It operates restaurants under the Red Lobster, Olive Garden, LongHorn Steakhouse, The Capital Grille, Bahama Breeze, Seasons 52, Eddie V's Prime Seafood, and Wildfish Seafood Grille brand names. As of June 21, 2013, it owned and operated approximately 2,100 restaurants. The company was founded in 1968 and is headquartered in Orlando, Florida.

We are recommending the following specific credit spreads.

Call credit spreads = Bearish Call spreads.