We are recommending the following credit spreads to the February 2014 expiration cycle.

We are recommending credit spreads for February 2014 in the following positions for Portfolio #1:

YHOO - Yahoo! Inc., a technology company, provides search, content, and communication tools on the Web and on mobile devices worldwide. It operates Yahoo.com that offers Yahoo! Search, which provides users with a free search capability; Yahoo! News that provides news via text, photos, and video; and Yahoo! Sports, which offers fantasy sports, editorial reporting, real-time scores, statistics and breaking news, and global sports events and premium college sports coverage. The companyÂ’s Yahoo.com also provides Yahoo! Finance that offers a set of financial data, information, and tools for users to make financial decisions; Yahoo! Entertainment and Lifestyles, which is a collection of properties focused on trends and information in culture, womenÂ’s issues, and media; Yahoo! Video that provides news, finance, sports, entertainment, and lifestyle video content; and Yahoo! Toolbar, a Web browser add-on. It also provides communications tools, including Yahoo! Mail that provides users with e-mail, instant messaging, and mobile text messaging, as well as integrated contacts and calendar functionality; and Yahoo! Messenger, an instant messaging service. In addition, the company offers mobile and emerging products, including IntoNow from Yahoo! for watching TV; and Yahoo! Connected TV, a software platform that provides interactive television, as well as provides user-generated content products, such as Yahoo! Groups, Yahoo! Answers, and Flickr that allow users to create, share, and discover ideas, interests, and photography. Further, it offers a range of marketing services, such as display advertising, search advertising, listing- based services, and commerce-based transactions to advertisers; and APIs, such as Yahoo! Developer Network, Cocktails, Yahoo! Query Language, Yahoo! User Interface, Search BOSS, and Yahoo! Flickr API for third-party developers, advertisers, agencies, publishers, and designers. The company was founded in 1994 and is headquartered in Sunnyvale, California.

COH - Coach, Inc. designs and markets bags, accessories, business cases, footwear, wearables, jewelry, sunwear, travel bags, watches, and fragrances for women and men in the United States and internationally. The company offers handbags, money pieces, wristlets, rings, charms, and cosmetic cases for women; and business cases, computer bags, messenger-style bags, totes, wallets, card cases, belts, as well as time management and electronic accessories for men. It provides wearables, such as scarves, jackets, gloves, and hats; jewelry comprising bracelets, necklaces, rings, and earrings made with sterling silver, leather, and non-precious metals; and travel bags, including luggage, travel kits, and valet trays. The company also offers fragrances comprising eau de perfume spray, eau de toilette spray, purse spray, body lotion, and body splashes for women; and fragrances for men, as well as footwear, watches, and sunglasses. In addition, the company licenses rights to distribute the Coach brand products, including footwear, eyewear, watches, and fragrances. Coach, Inc. markets its products to consumers through a network of company-operated stores in North America, Japan, Hong Kong, Macau, Mainland China, Taiwan, Malaysia, Korea, and Singapore, as well as through Internet, department stores, and specialty stores. The company also sells its products to wholesale customers and distributors in approximately 25 countries. As of June 29, 2013, the company operated 351 retail and 193 factory leased stores located in North America; 191 coach-operated department store shop-in-shops, retail stores, and factory stores in Japan; and 281 coach-operated department store shop-in-shops, retail stores, and factory stores in Hong Kong, Macau, Mainland China, Singapore, Taiwan, Malaysia, and Korea. Coach, Inc. was founded in 1941 and is headquartered in New York, New York.

ANF - Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer of casual apparel for men, women, and kids. It operates through three segments: U.S. Stores, International Stores, and Direct-to-Consumer. The company sells various products, including casual sportswear apparel comprising knit and woven shirts, graphic T-shirts, fleece, jeans and woven pants, shorts, sweaters, and outerwear; personal care products; and accessories for men, women, and kids under the Abercrombie & Fitch, abercrombie kids, and Hollister brand names. It also offers bras, underwear, personal care products, sleepwear, and at-home products for girls under the Gilly Hicks brand. As of November 2, 2013, the company operated 1,063 stores comprising 265 Abercrombie & Fitch stores, 144 abercrombie kids stores, 475 Hollister Co. stores, and 20 Gilly Hicks stores in the United States; and 22 Abercrombie & Fitch stores, 7 abercrombie kids stores, 122 Hollister Co. stores, and 8 Gilly Hicks stores internationally. Abercrombie & Fitch Co. sells its products through its stores and direct-to-consumer sales. The company was founded in 1892 and is headquartered in New Albany, Ohio.

We are recommending the following specific credit spreads.

Call credit spreads = Bearish Call spreads.

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