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INITIAL MAY RECOMMENDATIONS 4-16-06

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We are recommending the following two (2) put writes to start off our
MAY RECOMMENDED LIST.

We are recommending put writes in the following issues:

PEIX - Pacific Ethanol, Inc. engages in the development, production, and marketing of renewable fuels in the western United States. Pacific Ethanol is constructing an ethanol production facility in Madera County, California, as well as developing four additional plants on the West Coast. Kinergy Marketing, LLC, the company's wholly owned subsidiary, is a West Coast based marketer of ethanol. In addition, the company engages in the identification and development of other renewable fuel technologies, such as cellulose-based ethanol production and bio-diesel. Pacific Ethanol was founded in 2003 and is based in Fresno, California

TIVO - TiVo, Inc., through its subsidiaries, provides technology and services for digital video recorders (DVRs). The company offers a subscription-based television service that enables consumers to record, watch, and control television. This service also offers the television industry a platform for advertisers, content delivery, and audience research. It distributes DVRs to retailers and sells directly to consumers through it Web site. TiVo was co-founded by Michael Ramsay and Jim Barton in 1997. The company headquartered in Alviso, California.

We are recommending the following specific put writes:


PEIX 29.27
SELL PEIX MAY SYM: PFQ-QX
Target Price $80.00 22.5 Put
Potential Profit(10 x = $800.00

Initial Margin $6,654 10 (contracts)
Return on Investment 12.02%
Cost Basis in Stock = $21.70
Days to Expiration = 36
Stock goes on Watch List Price at: $26.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $22.50

TIVO $8.05
SELL TIVO MAY SYM: TUK-QA
Target Price $20.00 5 Put
Potential Profit(10 x = $200.00
Initial Margin $1,810 10 (contracts)
Return on Investment 11.05%
Cost Basis in Stock = $4.80
Days to Expiration = 36
Stock goes on Watch List Price at: $7.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $5.00

We will be looking to add more positions as the current earnings slow down this week

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