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

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

HFC - HollyFrontier Corporation operates as an independent petroleum refiner in the United States. It produces high-value refined products, such as gasoline, diesel fuel, jet fuel, specialty lubricant products, liquid petroleum gas, fuel oil, and specialty and modified asphalt. The company offers its products to other refiners, convenience store chains, independent marketers, retailers, truck stop chains, wholesalers, railroads, governmental entities, paving contractors or manufacturers, and commercial and specialty markets, as well as for commercial airline use. It owns and operates five refineries with a combined crude oil processing capacity of approximately 443,000 barrels per day in El Dorado, Kansas; Tulsa, Oklahoma; Artesia, New Mexico; Cheyenne, Wyoming; and Woods Cross, Utah, as well as owns and operates asphalt terminals in Arizona and New Mexico. HollyFrontier Corporation?s refineries serve markets in the Mid-Continent, Southwest, and Rocky Mountain regions of the United States. The company was formerly known as Holly Corporation and changed its name to HollyFrontier Corporation as a result of its merger with Frontier Oil Corporation in July 2011. HollyFrontier Corporation was founded in 1947 and is headquartered in Dallas, Texas.

GPS - The Gap, Inc. operates as an apparel retail company worldwide. It provides apparel, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Piperlime, Athleta, and Intermix brands. Its products comprise maternity apparel; loungewear, sleepwear, intimates, and active apparel for women; handbags, shoes, jewelry, personal care products, and eyewear for men and women; women?s apparel, footwear, and accessories for sports and fitness activities, including crossover apparel and casualwear; and luxury and contemporary products. The company also has franchise agreements with unaffiliated franchisees to operate stores in Asia, Australia, Eastern Europe, Latin America, the Middle East, and Africa under the Gap, Banana Republic, and Old Navy brands. Gap, Inc. offers its products through company-operated stores, franchise stores, e-commerce sites, and catalogs. As of May 3, 2014, it had 3,565 store locations in 48 countries, including 3,179 company-operated stores and 386 franchise stores. The Gap, Inc. was founded in 1969 and is headquartered in San Francisco, California.

TCK - Teck Resources Limited explores for, develops, and produces natural resources in the Americas, Asia Pacific, Europe, and Africa. Its principal products include copper, including copper concentrates and cathode copper; steelmaking coal; and refined zinc and zinc concentrates. The company also produces lead, molybdenum, germanium, indium, cadmium; gold and silver; industrial chemicals; and fertilizers and sulphur products, as well as electrical power. In addition, it holds interest in oil sands projects in the Athabasca region of Alberta; and owns or has interests in 13 mines in Canada, the United States, Chile, and Peru, as well as operates a metallurgical complex. The company was formerly known as Teck Cominco Limited and changed its name to Teck Resources Limited in April 2009. Teck Resources Limited was founded in 1906 and is headquartered in Vancouver, Canada.

Call credit spreads - Bearish Call spreads.

Put credit spreads - Bullish Put spreads.

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

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

CELG - Celgene Corporation, a biopharmaceutical company, discovers, develops, and commercializes therapies to treat cancer and immune-inflammatory related diseases in the United States and internationally. The company?s commercial stage products include REVLIMID, an oral immunomodulatory drug for the treatment of multiple myeloma, myelodysplastic syndromes (MDS), and mantle cell lymphoma; VIDAZA, a pyrimidine nucleoside analog to treat intermediate-2 and high-risk MDS, and chronic myelomonocytic leukemia, as well as acute myeloid leukemia (AML); ABRAXANE, a solvent-free chemotherapy product for the treatment of breast, non-small cell lung, pancreatic, and gastric cancers; and POMALYST/IMNOVID for the treatment of multiple myeloma. Its commercial stage products also comprise THALOMID for the patients with multiple myeloma and for the acute treatment of the cutaneous manifestations of erythema nodosum leprosum; ISTODAX to treat cutaneous T-cell lymphoma; and FOCALIN, FOCALIN XR, and RITALIN LA products. The company?s pre clinical and clbinical stage products consist of OTEZLA for the treatment of psoriatic arthritis, psoriasis, and ankylosing spondylitis; CC-122 and CC-220 to treat hematological and solid tumor cancers; cellular therapies, such as PDA-001 and PDA-002 for Crohn?s and peripheral arterial diseases; CC-486, to treat MDS, AML, and solid tumors; Sotatercept and ACE-536 for the treatment of anemia in patients with rare blood disorders; CC-223 and CC-115 for lymphomas, hepatocellular, and prostate cancers; and CC-292 for the treatment of chronic lymphocytic leukemia and lymphomas. It has strategic drug discovery collaboration with Abide Therapeutics to enhance the treatment paradigm for patients with immune disorders; and strategic alliance with Forma Therapeutics. Celgene Corporation was founded in 1980 and is headquartered in Summit, New Jersey.

We are recommending the following specific credit spreads.

Put credit spreads - Bullish Put spreads.

We are also adding a GLD July 124/121 Put spread which when joined with our current 127/130 call spread will give us an iron condor in GLD.

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

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

MBI - MBIA Inc., together with its subsidiaries, provides financial guarantee insurance and related reinsurance, advisory, and portfolio services for the public and structured finance markets; and asset management advisory services in the United States and internationally. The company operates through three segments: United States Public Finance Insurance, Structured Finance and International Insurance, and Advisory Services. It insures and reinsures structured finance and international public finance obligations, such as structured finance and asset-backed obligations; payments due under credit and other derivatives; bonds and loans used for the financing of projects or other entities located outside the United States; and obligations of sovereign-related and sub-sovereign issuers. The company also monitors and remediates structured finance and international infrastructure risks, as well as the U.S. public finance transactions; and is involved in certain transactions that require intensive remediation. In addition, it provides cash management, customized asset management, discretionary asset management, and fund accounting services to governments, insurance companies, corporations, pension funds, unions, endowments, foundations, and investment companies; and manages asset/liability programs and conduits, collateralized debt obligations, and other funding vehicles for banks, insurance companies, program trustees, and investment companies. MBIA Inc. was founded in 1973 and is headquartered in Armonk, New York.

Call credit spread - Bearish Call Spread.

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OTHER ACTION ON OUR THREE (3) PORTFOLIO'S

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Portfolio #1: ALERT: TEX closing.

Big move today in TEX action forces our hand to act and close the following trade. ( see below )

Portfolio #1:ALERT: CLOSING TEX JULY 40/42 call spread.

We are looking to close out the TEX JULY 40/42 call spread for a NET DEBIT of $1.05 - $1.15

The BID/ASK is $0.95- $1.25 as of this current email.

As usual we always look to split the BID/ASK, so try and work the BID/ASK spread

Never the less, we will be closing this spread on Monday, before the close.

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Portfolio #2: NO ACTION

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Portfolio #3:

We are CANCELING our BUY STOP on the CLF July 15 call as the stock has not only come out of the money but off the watch list.

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