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INITIAL AUGUST RECOMMENDATIONS FOR OPTION WRITER

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We are recommending two put writes to start off the AUGUST RECOMMENDED LIST


We are recommending put writes on the following issues:

CAL - Continental Airlines, Inc., an air carrier, engages in transporting passengers, cargo, and mail in the United States. As of December 31, 2005, its fleet consisted of 356 mainline jets and 266 regional jets. The company also operates an animal kenneling facility at George Bush Intercontinental Airport in Houston, Texas. Its kenneling facility provides a range services, including caging areas for various species, separate ventilation systems, exercise runs, and full grooming facilities

SID - Companhia Siderzrgica Nacional (CSN) primarily operates as an integrated steel producer in Brazil. The company produces a range of steel products, including slabs, hot and cold-rolled, galvanized, and tin mill products for the distribution, packaging, automotive, home appliance, and construction industries. The company sells its steel products to customers in Brazil and 61 other countries in North America, Europe, and Asia through its sales force and distributors.

We are recommending the following specific two (2) put writes:

CAL 27.93
SELL CAL AUG SYM: CAL-TX
Target Price $25.00 22.5 Put
Potential Profit(10 x = $250.00

Initial Margin $5,836 10 (contracts)
Return on Investment 4.28%
Cost Basis in Stock = $22.25
Days to Expiration = 27
Stock goes on Watch List Price at: $25.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $22.50

SID $30.34
SELL SID AUG SYM: SID-TE
Target Price $40.00 25 Put
Potential Profit(10 x = $400.00
Initial Margin $6,468 10 (contracts)
Return on Investment 6.18%
Cost Basis in Stock = $24.60
Days to Expiration = 27
Stock goes on Watch List Price at: $28.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $25.00


When these positions are filled they will be our first recommendations for the AUGUST cycle

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