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INITIAL FEBRUARY RECOMMENDED PUT WRITES

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INITIAL PLAYS for FEBRUARY RECOMMENDED LIST:

We are recommending the following three (3) put writes on the following
companies:


DPTR - Delta Petroleum Corporation
an independent energy company, engages in the acquisition, exploration, development,
and production of oil and gas properties. Its oil and gas operations include production
of oil and gas; drilling exploratory and development wells and related operations; and
acquiring and selling oil and gas properties. The company's products include crude oil
and natural gas. The principal markets for oil and gas are refineries and transmission
companies. As of June 30, 2005, the company owned producing and nonproducing oil and gas interests, undeveloped leasehold interests, and related assets in 15 states, as well as
interests in a producing federal unit offshore California and undeveloped offshore federal
leases near Santa Barbara, California.

VRX - Valeant Pharmaceuticals International (VPI),
a research-based pharmaceutical company, engages in the discovery, development, manufacture, and marketing of various pharmaceutical products worldwide. Its products encompass various therapeutic areas, with a primary focus upon infectious disease, neurology, and dermatology. The company's research and new product development initiatives focus on treatments for hepatitis C, hepatitis B, HIV/AIDS, and cancer.
VPI also develops, manufactures, and distributes prescription and nonprescription pharmaceuticals. Its prescription pharmaceutical products treat neuromuscular disorders, cancer, cardiovascular disease, diabetes, and psychiatric disorders

CONR - Conor Medsystems, Inc.,
a development stage company, engages in the development and commercialization of controlled vascular drug delivery technologies principally in the United States. Through its proprietary design, it controls drug release kinetics, or the rate of drug release over time. The company focuses on the development of COSTAR stent, a cobalt chromium paclitaxel eluting stent, for the treatment of restenosis, or the re-narrowing of the inner
channel of the artery following balloon angioplasty. Stents are tubular mesh devices consisting of interconnected metal struts that are inserted inside an artery to act as scaffolding, propping open a narrowed blood vessel

We are recommending the following specific put writes:

PUT WRITES

DPTR $22.96
SELL DPTR FEB SYM: QHR-ND
Target Price $45.00 20 Put
Potential Profit(10 x = $450.00
Initial Margin $5,042 10 (contracts)
Return on Investment 8.93%
Cost Basis in Stock = $19.55
Days to Expiration = 36
Stock goes on Watch List Price at: $22.00
STOP EXIT STRATEGY
Close option position if Stock drops to => $20.00


VRX $19.26
SELL VRX FEB SYM: VRX-NC
Target Price $35.00 15 Put
Potential Profit(10 x = $350.00

Initial Margin $4,202 10 (contracts)
Return on Investment 8.33%
Cost Basis in Stock = $14.65
Days to Expiration = 36
Stock goes on Watch List Price at: $17.00
STOP EXIT STRATEGY
Close option position if Stock drops to => $15.00


CONR $21.59
SELL CONR FEB SYM: QAP-NW
Target Price $50.00 17.5 Put
Potential Profit(10 x = $500.00
Initial Margin $4,818 10 (contracts)
Return on Investment 10.38%
Cost Basis in Stock = $17.00
Days to Expiration = 36
Stock goes on Watch List Price at: $19.50
STOP EXIT STRATEGY
Close option position if Stock drops to => $17.50

We will be adding more positions later in the week or early next week
after January option series will have expired.

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