We are recommending the following credit spreads for the March 2014 expiration cycle.
We are recommending for the final attempt the following credit spreads to the March 2014 expiration cycle.
We are recommending credit spreads for our Portfolio #2 in
the following issues.
DIS - The Walt Disney Company operates as an entertainment company worldwide. The company operates in five segments:
Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive. The Media Networks segment
operates broadcast and cable television networks, domestic television stations, and radio networks and stations; and is
involved in the television production and television distribution operations. Its cable networks include ESPN, Disney Channels
Worldwide, ABC Family, and SOAPnet, as well as UTV/Bindass. This segment owns eight domestic television stations. The Parks
and Resorts segment owns and operates the Walt Disney World Resort in Florida that includes theme parks; hotels; vacation club
properties; a retail, dining, and entertainment complex; a sports complex; conference centers; campgrounds; golf courses;
water parks; and other recreational facilities. This segment also operates Disneyland Resort in California; Disney Resort& Spa
in Hawaii; Disney Vacation Club, Disney Cruise Line, and Adventures by Disney; and Disneyland Paris, Hong Kong Disneyland
Resort, and Shanghai Disney Resort, as well as licenses the operations of Tokyo Disneyland Resort. The Studio Entertainment
segment produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings, and live
stage plays. The Consumer Products segment licenses trade names, characters, and visual and literary properties to retailers,
show promoters, and publishers; publishes entertainment and educational books, magazines, comic books; and operates English
language learning centers. This segment is involved in the retail and online distribution of products through the Disney Store
and DisneyStore.com. The Interactive segment creates and delivers entertainment and lifestyle content across interactive media
platforms. The company was founded in 1923 and is based in Burbank, California.
GILD - Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes human
therapeutics for the treatment of life threatening diseases in North America, Europe, and Asia. Its products include Stribild,
Complera/Eviplera, Atripla, Truvada, Viread, and Emtriva for the treatment of human immunodeficiency virus (HIV) infection in
adults; and Viread and Hepsera products for the treatment of liver disease. The company also offers Letairis, an endothelin
receptor antagonist for the treatment of pulmonary arterial hypertension; Ranexa, a tablet used for the treatment of chronic
angina; Lexiscan/Rapiscan injection for use as a pharmacologic stress agent in radionuclide myocardial perfusion imaging;
Cayston, an inhaled antibiotic for the treatment of respiratory systems in cystic fibrosis patients; and Tamiflu, an oral
antiviral capsule for the treatment and prevention of influenza A and B. In addition, it provides other products, such as
AmBisome, an antifungal agent to treat serious invasive fungal infections; Vistide, an antiviral injection for the treatment
of cytomegalovirus retinitis in patients with AIDS; and Macugen, an anti-angiogenic oligonucleotide to treat neovascular
macular degeneration. Further, it has product candidates in various stages for the treatment of cardiovascular diseases,
respiratory diseases, and oncology diseases/inflammation. The company markets its products through its commercial teams and/or
in conjunction with third-party distributors and corporate partners. Gilead Sciences, Inc. has collaborations with BMS, GSK,
Janssen, and Japan Tobacco to develop and commercialize various products. The company was founded in 1987 and is headquartered
in Foster City, California.
Put credit spreads = Bullish put spreads.
We are recommending credit spreads for March 2014 in the following positions
for Portfolio #3:
XRX - Xerox Corporation provides business process and document management solutions worldwide. The company?s
Services segment offers various business process outsourcing services, including administrative and care management solutions
to state Medicaid programs and federally-funded government healthcare programs; healthcare payer and pharmaceutical services;
healthcare provider solutions for hospitals, doctors, and other care providers; human resources services; finance, accounting,
and procurement services; customer care services; technology-based transactional services for retail, travel, and non-
healthcare insurance companies; and communication and marketing services, as well as government and transportation services.
It also provides information technology outsourcing services comprising managed IT services consisting of administration,
database administration, systems monitoring, batch processing, data backup, network and infrastructure management, and
capacity planning; end-user computing services to manage platforms and devices; and IT solutions covering cloud, utility
computing, desktop virtualization, and other solutions. In addition, this segment offers document outsourcing services, such
as managed and centralized print services. The company?s Document Technology segment provides desktop monochrome and color
printers, multifunction printers, copiers, digital printing presses, and light production devices; and production printing and
publishing systems for the graphic communications marketplace and large enterprises, as well as toners, inks, and Xerox
replacement cartridges. Its Other segment sells paper, wide-format systems, network integration solutions, and electronic
presentation systems. The company sells its products and services through its sales force, as well as through a network of
independent agents, dealers, value-added resellers, systems integrators, and the Web. Xerox Corporation was founded in 1906
and is headquartered in Norwalk, Connecticut.
We are recommending the following specific credit spreads.
Call credit spreads = Bearish Call spreads.