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OCTOBER PUT WRITE RECOMMENDATIONS

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RECOMMENDATION LIST FOR INITIAL PUT WRITES FOR OCTOBER

WIth Oil Prices unstable, economic news filled with uncertainty
and housing starts and economic growth rates marginable at best; our
initial positions will concentrate in the Health Care industry to start off the month
Here are our initial put writing recommendations based on the following underlying
companies.

CYPB (Cypress Bioscience, Inc.)
a biotechnology company, develops products for the treatment of
Functional Somatic Syndromes, such as Fibromyalgia Syndrome (FMS),
as well as other related chronic pain and central nervous system
disorders. It develops Milnacipran, a norepinephrine serotonin
reuptake inhibitors agent for the treatment of FMS.

MNTA (Momenta Pharmaceuticals, Inc.)
engages in structural analysis and design of complex sugars for the
development of improved versions of existing drugs, the development
of novel drugs, and the discovery of new biological processes.
The company's products include M-Enoxaparin, a technology-enabled
generic version of Lovenox and a low molecular weight heparin(LMWH),
which is used to prevent and treat deep vein thrombosis and treat
acute coronary syndromesMTNA

BIVN (Bioenvision, Inc.)
A biopharmaceutical company, engages in the acquisition,
development, and distribution of drugs to treat cancer. Its anti-cancer
product portfolio includes three products, Modrenal to treat advanced
breast cancer; Clofarabine to treat hematologic cancers and solid tumors;
and Velostan to treat bladder cancer

RIGL (Rigel Pharmaceuticals, Inc.)
engages in the discovery and development of small-molecule product
candidates for the treatment of unmet medical needs. It has three
product development programs, such as allergy/asthma, rheumatoid
arthritis, and cancer. The company develops R112, which is in Phase II
clinical trial for the treatment of allergic rhinitis; and R406/788
that is in Phase I clinical study for the treatment of rheumatoid
arthritis.

MYOG (Myogen, Inc.)
A biopharmaceutical company, engages in the discovery,
development, and commercialization of small molecule therapeutics for
the treatment of cardiovascular diseases. It markets an intravenous
formulation of enoximone, Perfan I.V., for the treatment of acute
decompensated heart failure in Europe

VPHM (ViroPharma Incorporated)
a pharmaceutical company, engages in the development and commercialization
of products that address serious diseases treated by physician
specialists and in hospital settings. It markets and sells Vancocin
Pulvules HCl, the oral capsule formulation, in the United States
and its territories. Oral Vancocin is a potent antibiotic to treat
antibiotic-associated pseudomembranous and enterocolitis.


The following are our initial recommended put writes for the
October Expiration.


SELL CYPB OCT $7.50 PUT QGY-VU
Target Price $50.00 or $0.50
Potential Profit( 10 x = $500.00
Initial Margin $3,294 10 (contracts)
Return on Investment 15.18%
Cost Basis in Stock = $7.00
Days to Expiration = 39


SELL MNTA OCT $22.50 PUT QMP-VX
Target Price $90.00 or $0.90
Potential Profit( 10 x = $900.00
Initial Margin $6,272 10 (contracts)
Return on Investment 14.35%
Cost Basis in Stock = $21.60
Days to Expiration = 39

SELL BIVN OCT $7.50 PUT BQN-VU
Target Price $30.00 or $0.30
Potential Profit( 10 x = $300.00
Initial Margin $2,076 10 (contracts)
Return on Investment 14.45%
Cost Basis in Stock = $7.20
Days to Expiration = 39

SELL RIGL OCT $17.50 PUT QRG-VW
Target Price $55.00 or $0.55
Potential Profit( 10 x = $550.00
Initial Margin $4,904 10 (contracts)
Return on Investment 11.22%
Cost Basis in Stock = $16.95
Days to Expiration = 39

SELL MYOG OCT $20.00 PUT QJV-VD
Target Price $85.00 or $0.85
Potential Profit( 10 x = $850.00
Initial Margin $5,274 10 (contracts)
Return on Investment 16.12%
Cost Basis in Stock = $19.15
Days to Expiration = 39

SELL VPHM OCT $15.00 PUT DUZ-VC
Target Price $55.00 or $0.55
Potential Profit( 10 x = $550.00
Initial Margin $4,012 10 (contracts)
Return on Investment 13.71%
Cost Basis in Stock = $14.45
Days to Expiration = 39

As usual we will be monitoring and will inform you of any additions or changes that may be needed if and when they might become necessary.

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