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

We are recommending credit spreads for our Portfolio #1 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 company?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, and water bottles. The company sells its products through a chain of corporate-owned and operated retail 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 2, 2014, it operated 254 stores in the United States, Canada, Australia, and New Zealand under the lululemon athletica and ivivva athletica brand names. lululemon athletica inc. was founded in 1998 and is based in Vancouver, Canada.

HPQ - Hewlett-Packard Company, together with its subsidiaries, provides products, technologies, software, solutions, and services to individual consumers, small-and medium-sized businesses (SMBs), and large enterprises, including customers in the government, health, and education sectors worldwide. Its Personal Systems segment offers commercial personal computers (PCs), consumer PCs, workstations, thin clients, tablets, retail point-of-sale (POS) systems, calculators and other related accessories, software, support, and services for the commercial and consumer markets. The company?s Printing segment offers consumer and commercial printer hardware, supplies, media, software and Web services, and scanning devices, as well as inkjet and printing solutions, laserjet and enterprise solutions, and graphics solutions. Its Enterprise Group segment provides industry standard servers; business critical systems; traditional and converged storage solutions; networking products comprising controllers/switches, routers, and wireless LAN access points; and technology consulting and support services focused on cloud, mobility, and data. The company?s Enterprise Services segment offers technology consulting, outsourcing, and support services to infrastructure, applications, and business process domains; and application and business services. Its Software segment provides enterprise information management solutions, such as data analytics, information governance, and digital marketing for structured and unstructured data; IT management software; and security intelligence/risk management solutions as software licenses and software-as-a-service. The company?s HP Financial Services segment offers leasing, financing, utility programs, and asset recovery services; and asset management services to enterprise customers, as well as specialized financial services to SMBs, and educational and governmental entities. The company was founded in 1939 and is headquartered in Palo Alto, California.

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 AUGUST 2014 expiration cycle.

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

HD - The Home Depot, Inc. operates as a home improvement retailer. The Home Depot stores sell various building materials, home improvement products, and lawn and garden products as well as provide installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me, and professional customers. The company offers installation programs that include flooring, cabinets, countertops, water heaters, and sheds, as well as act as a contractor to provide installation services to its do-it-for-me customers through third-party installers. It primarily serves professional remodelers, general contractors, repairmen, small business owners, and tradesmen. The company also sells its products through online. As of March 13, 2014, it operated 2,263 retail stores in the United States, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia.

RHT - Red Hat, Inc. provides open source software solutions to enterprise customers worldwide. It develops and offers operating system, virtualization, middleware, storage, and cloud technologies. The company?s products include Red Hat Enterprise Linux, an operating system designed for enterprise computing that runs on a range of hardware, such as mainframes, servers, and work stations; Red Hat Enterprise Virtualization, which comprise standalone virtualization functionality and management tools for server and desktop deployments; and Red Hat JBoss Middleware that offers a range of middleware offerings for developing, deploying, and managing applications, which are accessible via the Internet, enterprise Intranets, extranets, clouds, and virtual private networks. It also offers Red Hat Storage Server software that enables users to treat storage as a virtualized resource, for deployment on-premise and in cloud computing and hybrid environments, as well as aggregates disk and memory resources into a unified storage pool; and Red Hat cloud offerings, which are the enterprise technologies that assist users in creating cloud computing environments, such as Red Hat CloudForms, Red Hat Enterprise Linux OpenStack Platform, Red Hat Cloud Infrastructure, and OpenShift by Red Hat. In addition, the company provides Red Hat enterprise services comprising technologies, such as high-performance distributed computing, directory services, and user authentication, as well as offers consulting, support, and training services. Red Hat, Inc. sells its enterprise technologies through annual or multi-year subscriptions. It has strategic partnerships with Advanced Micro Devices, Inc.; ARM Holdings plc; Intel Corporation; Amazon.com, Inc.; Fujitsu; Google Inc.; IBM; and Rackspace Hosting, Inc. The company was formerly known as Red Hat Software, Inc. and changed its name to Red Hat, Inc. in June 1999. Red Hat, Inc. was founded in 1993 and is headquartered in Raleigh, North Carolina.

ACN - Accenture plc provides management consulting, technology, and business process outsourcing (BPO) services worldwide. The company operates through Communications, Media & Technology; Financial Services; Health & Public Service; Products; and Resources segments. It offers management consulting services in the finance and enterprise performance, operations, risk management, sales and customer service, strategy, sustainability, and talent and organization management areas; and industry-specific management consulting services. The company also offers system integration consulting services and solutions, including enterprise solutions and enterprise resource planning, industry and functional solutions, information management services, custom solutions, and Microsoft solutions; and technology consulting services and solutions comprising information technology (IT) strategy, infrastructure and IT security consulting, and application modernization and optimization. In addition, it provides technology outsourcing services, such as application outsourcing services; infrastructure outsourcing services in service desk, workplace, data-center, network, security, and IT spend management service areas; and cloud computing, mobility, and embedded software services. Further, the company provides BPO services for business functions and processes, including finance and accounting, human resources, learning and procurement, and others, as well as industry-specific BPO services, such as credit services. It serves communications, electronics and high technology, media and entertainment, banking, capital markets, insurance, health, public service, airlines, freight and logistics, travel, automotive, consumer goods and service, industrial equipment, infrastructure and transportation service, life sciences, retail, chemical, energy, natural resources, and utility industries. Accenture plc has a strategic collaboration with Marriott International, Inc. The company is based in Dublin, Ireland.

INTU - Intuit Inc. provides business and financial management solutions for small businesses, consumers, and accounting professionals in the United States, Canada, the United Kingdom, Australia, India, and Singapore. The company offers QuickBooks financial and business management software and services; QuickBooks technical support; financial supplies; Demandforce, which provides online marketing and customer communication solutions; payroll products and services; merchant services, including credit and debit card processing; electronic check conversion and automated clearing house services; Web-based transaction processing services for online merchants; and GoPayment mobile payment processing services. The company also provides TurboTax income tax preparation products and services for consumers and small businesses; Lacerte, ProSeries, and Intuit Tax Online professional tax products and services; and QuickBooks Premier Accountant Edition and the QuickBooks ProAdvisor Program for accounting professionals. In addition, it offers Quicken line of desktop software products to reconcile bank accounts, pay bills, record credit card, and other transactions, as well as to track investments, mortgages, and other assets and liabilities; and Mint personal finance service that shows various financial accounts in one online location. The company sells its products and services through various sales and distribution channels, including Websites, promotions, call centers, retail locations, and online stores, as well as through alliance partners, banks, credit unions, and securities and investment firms. The company was founded in 1983 and is headquartered in Mountain View, California.

Call credit spread - Bearish Call Spread.

Put credit spreads - Bullish Put spreads.

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

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

MRVL - Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone ARM-based integrated circuits. It offers mobile and wireless products comprising communications and applications processors; thin modems; Wi-Fi products, as well as multi-function system-on-a-chips (SoCs), which incorporate multiple wireless communications protocols, including Wi-Fi, Bluetooth, NFC and FM, delivered on a single chip; and mobile computing products. The company also provides a range of integrated data storage products, such as hard disk drive, solid-state drive, and solid state hybrid drive controllers, as well as storage-system products. In addition, it offers networking products comprising cloud infrastructure and service provider infrastructure. Further, the company provides printer-specific standard SoC products, as well as custom printer ASICs; and smart home product portfolio and other products that are designed to enable the next generation of connected consumer platforms, and to enhance the eco-friendly ?Connected Lifestyle? throughout the home, ranging from broadband access, home networking, home entertainment, and home automation. It operates in the United States, Canada, China, India, Israel, Italy, Japan, Malaysia, Singapore, South Korea, Spain, Sweden, Switzerland, and Taiwan. Marvell Technology Group Ltd. was founded in 1995 and is headquartered in Hamilton, Bermuda.

KBH - KB Homes Inc. is engaged in homebuilding activities in the United States. It constructs and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, move-up, and active adult homebuyers. The company also provides property and casualty insurance, as well as earthquake, flood, and personal property insurance to its homebuyers; and provides title services. It has operations in Arizona, California, Colorado, Florida, Maryland, Nevada, New Mexico, North Carolina, Texas, and Virginia. The company was formerly known as Kaufman and Broad Home Corporation and changed its name to KB Home in 2001. KB Home was founded in 1957 and is headquartered in Los Angeles, California.

AA - Alcoa Inc. produces and manages primary aluminum, fabricated aluminum, and alumina. The company operates in four segments: Alumina, Primary Metals, Global Rolled Products, and Engineered Products and Solutions. The Alumina segment is engaged in mining of bauxite, which is then refined into alumina. The Primary Metals segment produces aluminum. The Global Rolled Products segment produces and sells aluminum plate, sheet, and foil. The Engineered Products and Solutions segment produces and sells titanium, aluminum, and super alloy investment castings; fasteners; aluminum wheels; integrated aluminum structural systems; architectural extrusions; and forgings and hard alloy extrusions. Its products are used in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defense, consumer electronics, and industrial applications. The company has operations primarily in the United States, Australia, Spain, Brazil, France, the Russian Federation, Hungary, the Netherlands, Norway, the United Kingdom, China, Germany, and Italy. Alcoa Inc. was founded in 1888 and is based in New York, New York.

Call credit spread - Bearish Call Spread.