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

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

AMBA - Ambarella, Inc. develops semiconductor processing solutions for video that enable high-definition (HD) video capture, sharing, and display worldwide. The companyÂ’s system-on-a-chip designs integrated HD video processing, image processing, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Its solutions enable the creation of video content for wearable sports cameras, automotive aftermarket cameras, Internet Protocol (IP) security cameras, and camcorders in the camera market; and manage IP video traffic, broadcast encoding, transcoding, and IP video delivery applications in the infrastructure market. The company sells its solutions to original design manufacturers and original equipment manufacturers through its direct sales force and logistics providers. Ambarella, Inc. was founded in 2004 and is headquartered in Santa Clara, California.

SHLD - Sears Holdings Corporation operates as a retailer in the United States and Canada. The companyÂ’s Kmart segment operates stores that sell merchandise under Jaclyn Smith, Joe Boxer labels, and Alphaline labels; and Sears brand products and services, such as Kenmore, Craftsman, and DieHard, as well as Kenmore-branded products. 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, as well as Roadhandler. Its stores provide appliances, consumer electronics, tools, sporting goods, home fashion products, apparel, footwear, jewelry, accessories, health and beauty products, pantry goods, and household products, 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. Its Sears Canada segment is primarily involved in the retail of apparel and other softlines. The company operates approximately 1,980 full-line and specialty retail stores in the United States; 449 full-line and specialty retail stores in Canada; and kmart.com and sears.com Websites. Sears Holdings Corporation was founded in 1899 and is based in Hoffman Estates, Illinois.

LEN - Lennar Corporation, together with its subsidiaries, is engaged in homebuilding activities in the United States. The company operates through Homebuilding East, Homebuilding Central, Homebuilding West, Homebuilding Southeast Florida, Homebuilding Houston, Financial Services, Rialto Investments, and Lennar Multifamily segments. Its homebuilding activities primarily include the construction and sale of single-family attached and detached homes to first-time, move-up, and active adult homebuyers, as well as the purchase, development, and sale of residential land. The company also offers real estate related financial services, including mortgage financing, title insurance, and closing services for home buyers and others. In addition, it is involved in raising, investing, and managing third party capital; originating and securitizing commercial mortgage loans, as well as investing in real estate related mortgage loans, properties, and related securities. Further, the company develops multifamily rental properties. Lennar Corporation was founded in 1954 and is headquartered in Miami, Florida.

Call credit spreads = Bearish Call spreads.

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

We are recommending credit spreads for our Portfolio #2 in the following issues.

KORS - Michael Kors Holdings Limited engages in the design, marketing, distribution, and retailing of branded womenÂ’s apparel and accessories, and menÂ’s apparel. The company operates in three segments: Retail, Wholesale, and Licensing. The Retail segment is involved in the sale of womenÂ’s apparel; accessories, which include handbags and small leather goods, such as wallets; footwear; and licensed products comprising watches, fragrances, and eyewear. As of March 30, 2013, it had 231 retail stores, including concessions in North America; and 73 international retail stores, including concessions in Europe and Japan. The Wholesale segment sells accessories, which include handbags and small leather goods, footwear, and womenÂ’s and menÂ’s apparel to department stores and specialty shops in North America and Europe. The Licensing segment licenses its trademarks on products, such as fragrances, cosmetics, eyewear, leather goods, jewelry, watches, coats, footwear, menÂ’s suits, swimwear, furs, and ties, as well as licenses rights to third parties to sell the companyÂ’s products in geographical regions, including Korea, the Philippines, Singapore, Malaysia, Indonesia, Australia, the Middle East, Russia, Turkey, China, Hong Kong, Macau Taiwan, Latin America and the Caribbean, and India. The company sells its products under the names of MICHAEL KORS, MICHAEL MICHAEL KORS, KORS MICHAEL KORS, and various other related trademarks and logos. The company was founded in 1981 and is based in Tsim Sha Tsui, Hong Kong.

ROSS - Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and ddÂ’s DISCOUNTS brand names in the United States. The company primarily offers apparel, accessories, footwear, and home fashions. Its Ross Dress for Less stores sell its products at everyday savings of 20% to 60% off department and specialty store regular prices primarily to middle income households; and ddÂ’s DISCOUNTS stores sell its products at everyday savings of 20% to 70% off moderate department and discount store regular prices to moderate income households. As of March 10, 2014, it operated 1,173 store locations in 33 states, the District of Columbia, and Guam. Ross Stores, Inc. was founded in 1957 and is headquartered in Dublin, California.

ADBE - Adobe Systems Incorporated operates as a diversified software company worldwide. It operates in three segments: Digital Media, Digital Marketing, and Print and Publishing. The Digital Media segment provides tools and solutions that enable individuals, small businesses, and enterprises to create, publish, promote, and monetize their digital content anywhere. This segmentÂ’s flagship product is Adobe Creative Cloud, a subscription service that allows customers to download and install the latest version of its creative products. This segment serves traditional content creators, Web application developers, and digital media professionals, as well as their management in marketing departments and agencies, companies, and publishers. The Digital Marketing segment provides solutions and services for how digital advertising and marketing are created, managed, executed, measured, and optimized. This segment also offers analytics, social, targeting, media optimization, Web experience management, and cross-channel campaign management solutions to digital marketers, advertisers, publishers, merchandisers, Web analysts, chief marketing officers, chief information officers, and chief revenue officers. The Print and Publishing segment provides products and services that address diverse market opportunities, including eLearning solutions, technical document publishing, Web application development, and high-end printing, as well as publishing needs of technical and business, and original equipment manufacturers (OEMs) printing businesses. The company distributes its products through a network of distributors, value-added resellers, systems integrators, independent software vendors, retailers, and OEMs. It also markets and licenses its products and services directly to enterprise customers through its sales force, to end-users through app stores, and through its Website at adobe.com. Adobe Systems Incorporated was founded in 1982 and is headquartered in San Jose, California.

Call credit spreads = Bearish Call spreads.

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

We are recommending credit spreads for our Portfolio #3 in the following issues.

MU - Micron Technology, Inc., together with its subsidiaries, manufactures and markets semiconductor solutions worldwide. It offers dynamic random access memory (DRAM) products for data storage and retrieval, including DDR4, DDR3, and DDR2 that offer high speed and high bandwidth; and other specialty DRAM memory products, such as DDR and DDR2 mobile low power DRAM, DDR, SDRAM, reduced latency DRAM, and pseudo-static DRAM products that are used in computers, servers, tablets, mobile phones, communication equipment, computer peripherals, industrial, automotive, and other electronic devices. The company also provides NAND flash memory products, such as flash memory cards comprising CompactFlash, Memory Stick, and Secure Digital; and JumpDrive products that are used in mobile phones, solid-state drives, tablets, computers, industrial and automotive applications, MP3/4 players, and other personal and consumer applications. In addition, it resells flash memory products that are purchased from other NAND flash suppliers. Further, Micron Technology, Inc. provides NOR flash memory products that are electrically re-writeable, non-volatile semiconductor memory devices used in consumer electronics, industrial, wired and wireless communications, computing, and automotive applications. The company markets its products to original equipment manufacturers and retailers through its internal sales force, independent sales representatives, and distributors, as well as through a Web-based customer direct sales channel, and channel and distribution partners. Micron Technology, Inc. was founded in 1978 and is headquartered in Boise, Idaho.

DANG - E-Commerce China Dangdang Inc. operates as a business-to-consumer e-commerce company in the PeopleÂ’s Republic of China. It primarily sells books, audio-visual products, periodicals, consumer electronics, and electronic publications through its Website dangdang.com. The company also sells general merchandise products, including beauty and personal care products; home and lifestyle products; baby, children, and maternity products; apparel and accessories; and footwear, handbags, and luggage. In addition, it operates the dangdang.com marketplace program, which enables third-party merchants to sell their products. The company was founded in 2000 and is headquartered in Beijing, the PeopleÂ’s Republic of China.

APOL - Apollo Education Group, Inc., together with its subsidiaries, provides online and on-campus educational programs and services at the undergraduate, masterÂ’s, and doctoral levels. The company offers various degree programs in arts and sciences, business and management, criminal justice and security, education, nursing and health care, human services, psychology, and technology through its campus locations and learning centers, as well as through its online education delivery system. It also publishes research-based math curricula and adaptive learning software; provides professional training and education through schools located in the United Kingdom; sells books and other publications; offers associateÂ’s, bachelorÂ’s, and masterÂ’s degrees in various program areas, as well as certificate programs at its Arizona campus locations and online; and provides bachelorÂ’s and masterÂ’s programs at campuses in Chile and Mexico. In addition, the company offers program development, administration, and management consulting services comprising degree program design, curriculum development, market research, student admissions, and accounting and administrative services to private colleges and universities to establish their programs for working learners; and financial services education programs, including Master of Science in three majors, as well as certification programs in retirement, asset management, and other financial planning areas. The company was formerly known as Apollo Group, Inc. and changed its name to Apollo Education Group, Inc. in November 2013. Apollo Education Group, Inc. was founded in 1973 and is headquartered in Phoenix, Arizona.

Call credit spreads = Bearish Call spreads.