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INITIAL JUNE RECOMMENDED LIST 5-14-06

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INITIAL JUNE OPTION WRITER RECOMMENDATIONS

We are recommending put writes in the following issues:

AMR - AMR Corporation (AMR), through its principal subsidiary, American Airlines, Inc., operates as a scheduled passenger airline. The company operates scheduled air freight carriers, as well as provides freight and mail services to shippers. AMR, through its AMR Eagle Holding Corporation subsidiary, also owns two regional airlines, which do business as the American Eagle carriers. It also contracts with three independently owned regional airlines that do business as the American Connection.


GM - General Motors Corporation (GM), together with its subsidiaries, primarily engages in the design, manufacture, and marketing of automotive products worldwide. The company operates through Automotive, and Financing and Insurance Operations (FIO) segments.


ELN - Elan Corporation, plc operates as a neuroscience-based biotechnology company worldwide. It operates through two segments, Biopharmaceuticals and Elan Drug Technologies. Biopharmaceuticals segment engages in the research, development, and commercial activities, which includes autoimmune diseases and neurodegenerative diseases

We are recommending the following specific put writes"

AMR 26.69
SELL AMR JUN SYM: AMR-RD
Target Price $25.00 20 Put
Potential Profit(10 x = $250.00

Initial Margin $5,588 10 (contracts)
Return on Investment 4.47%
Cost Basis in Stock = $19.75
Days to Expiration = 35
Stock goes on Watch List Price at: $22.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $20.00

GM $26.09
SELL GM JUN SYM: GM-RD
Target Price $30.00 20 Put
Potential Profit(10 x = $300.00

Initial Margin $5,518 10 (contracts)
Return on Investment 5.44%
Cost Basis in Stock = $19.70
Days to Expiration = 35
Stock goes on Watch List Price at: $22.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $20.00


ELN $15.86
SELL ELN JUN SYM: ELN-RV
Target Price $20.00 12.5 Put
Potential Profit(10 x = $200.00
Initial Margin $3,372 10 (contracts)
Return on Investment 5.93%
Cost Basis in Stock = $12.30
Days to Expiration = 35
Stock goes on Watch List Price at: $14.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $12.50

When these positions are filled this will be our first three (3) JUNE RECOMMENDATIONS

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