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

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

MSFT - Microsoft Corporation develops, licenses, and supports software, services, and solutions worldwide. Its Windows division develops and markets PC operating systems, related software, and online services, and PC hardware products. These offerings consist of the Windows operating system, software, and services; Surface; and Microsoft PC hardware products. The companyÂ’s Server and Tools division provides Windows Server, Windows Azure, Microsoft SQL Server, SQL Azure, Windows Intune, Windows Embedded, Visual Studio, Silverlight, and System Center. It also offers cloud-based services; and training and certification to developers and information technology professionals, as well as builds standalone and software development lifecycle tools for software architects, developers, testers, and project managers. Its Online Services division provides online information and content, including Bing, MSN, adCenter, and Atlas online tools for advertisers. The Microsoft Business division offers Microsoft Office system consisting of Office, Exchange, SharePoint, Lync, and Office 365; and Microsoft Dynamics ERP and CRM. Its Entertainment and Devices division provides Xbox 360 entertainment platform, which includes the Xbox 360 gaming and entertainment console, Kinect for Xbox 360, Xbox 360 video games, Xbox 360 accessories, and Xbox LIVE; Skype; and Windows Phone. The company markets and distributes its products and services primarily through original equipment manufacturers, distributors, and resellers, as well as through online. Microsoft was founded in 1975 and is headquartered in Redmond, Washington.

AN - AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company operates in three segments: Domestic, Import, and Premium Luxury. It offers a range of automotive products and services, including new vehicles, used vehicles, parts and service, which includes automotive repair and maintenance services, as well as wholesale parts and collision businesses; and automotive finance and insurance products that comprise arranging financing for vehicle purchases through third-party finance sources. The company also provides a range of vehicle maintenance, repair, paint, and collision repair services, such as warranty and customer-pay service work. In addition, it offers various vehicle protection products, such as extended service contracts, maintenance programs, guaranteed auto protection, tire and wheel protection, and theft protection products. As of May 2, 2013, the company owned and operated 263 new vehicle franchises, which sell 32 brands in 15 states. AutoNation, Inc. was founded in 1991 and is headquartered in Fort Lauderdale, Florida.

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 companyÂ’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.

SAP - SAP AG provides enterprise application software and software-related services worldwide. It offers products in applications, analytics, cloud, mobile, and database and technology categories. The companyÂ’s enterprise applications include SAP Business Suite, a business process platform that includes software applications for ERP, customer relationship management, product lifecycle management, supplier relationship management, and supply chain management; SAP Rapid Deployment solutions that combine preconfigured software and predefined services with content, such as SAP best practices, templates, tools, and business user enablement; solutions for small businesses and midsize companies; and solutions for sustainability. Its analytics solutions comprise business intelligence, enterprise information management, enterprise performance management, and governance, risk, and compliance solutions. In addition, SAP AG provides mobile solutions, such as mobile apps for development, device management, and security, as well as cloud solutions, such as a platform-as-a-service designed to help customers, independent software vendors, and partners create software applications, and cloud-based applications with business-to-business commerce network. Further, it offers database and technology solutions, which provide an approach to the orchestration of business applications, as well as consulting services, such as business and IT transformation, performance and insight optimization, business applications, project and program management, risk management, quality assurance, and rapid-deployment solutions and engineered services; and education and certification services. SAP AG sells its products to small businesses, midsize companies, and large enterprises through its subsidiaries and value-added resellers. The company, formerly known as SAP Aktiengesellschaft Systeme, Anwendungen, Produkte in der Datenverarbeitung, was founded in 1972 and is headquartered in Walldorf, Germany.

We are recommending the following specific credit spreads.

Call Credit spreads = Bearish call spreads.